Accelerating financing for sustainable development: Commissioner Síkela concludes successful mission to Sevilla

On 30 June – 1 July, Commissioner for International Partnerships Jozef Síkela participated in the fourth International Conference on Financing for Development, FfD4, that took place in Seville, Spain.

This Financing for Development Conference, the first in ten years, aimed at realigning global development efforts and making them more effective and impactful. As the annual investment gap for the Sustainable Development Goals has increased, the conference also focused on new approaches to mobilizing development finance and making it more effective.

“Socioeconomic development is the foundation of global stability. And especially in a more transactional and uncertain world, the world needs more development. Not less. In Sevilla, we had a once-in-a-decade opportunity to rethink how we finance development and I was honored to represent EU and strengthen its development leadership,” said Commissioner Síkela. 

In his interventions and meetings with different high-level stakeholders throughout the conference, Commissioner Síkela highlighted that the European Union is committed to promoting inclusive, sustainable development worldwide. The EU and its Member States remain the world’s largest provider of Official Development Assistance, accounting for around 42% of global ODA – funds that contribute to boosting sustainable growth, creating quality jobs, and tackling poverty where it matters the most. 

Commissioner Síkela presented how the EU’s value-based strategy Global Gateway makes use of innovative financing mechanisms, starting with creating the right investment environment in partner countries. Global Gateway blends public and private finance, de-risks investments to unlock more possibilities, and mobilizes capital at scale. The EU also works with partner countries to strengthen their domestic resource mobilization as the most reliable and sustainable source of financing.  

During the conference, Commissioner Síkela launched several projects backed by a guarantee from the European Fund for Sustainable Development Plus, a key financing tool of Global Gateway. A €75 million guarantee for the “SOL” programme with COFIDES and AECID will promote access to renewable energy through off-grid and mini-grid electrification solutions in underserved areas of Sub-Saharan Africa, Latin America and the Caribbean. A €150 million EU guarantee with EDFI Management Company (EDFI MC) and the Currency Exchange Fund (TCX) will expand currency risk protection in frontier markets, protecting both borrowers and lenders. It is expected to support up to €2 billion of financing in EU partner countries. 

The Commissioner also witnessed Banque El Amana and the European Investment Bank sign an agreement for €20 million to finance small and medium-sized companies. This Global Gateway investment contributes to the development of sustainable fisheries and the blue economy in Mauritania and will open up more opportunities for women’s businesses and young people.

Additionally, the Commission launched with the International Fund for Agricultural Development (IFAD) a €4 million programme 'Resilient Remit' to scale up the development impact of remittances, the largest source of external finance for low- and middle-income countries. The programme aims to empower remote rural communities to make better use of remittances and build resilience against weather shocks through improved access to savings, credit, insurance, and other financial services.

In addition to participating in a roundtable on revitalising international development, the Commissioner took part in events focused on ‘Revitalising the Africa-Europe Partnership for Sustainable Finance and Growth’ and on ‘Sustainable Finance for Gender Equality: Accelerating action towards 2030’. Before the conference, the Commissioner also participated in a high-level review of the status of the EU–LAC Global Gateway Investment Agenda ahead of the upcoming EU–CELAC Summit in Colombia.

The Commissioner also presented together with Finland and Nokia how Global Gateway is investing in secure, trusted digital infrastructure – fibre, satellites, data centres – and in education, training, and governance.