President Dr. Mohamed Muizzu has called to scale up private financing in a bid to boost the productive capacities of Small Island Developing States (SIDS).
The president made this remark while delivering his keynote address at the High-Level Meeting on Resource Mobilization for SIDS at the fourth International Conference on SIDS, being held in Antigua and Barbuda from May 27 – 30.
As such, the Maldivian leader called for reforms to the financial architecture and avenues for partnerships for SIDS to enable easier access to finance, to reach Sustainable Development Goals (SDGs).
Muizzu highlighted that several SIDS including the Maldives that have graduated from the Least Developed Countries (LDC) category, pay a hefty price tag considering the increase in the cost of borrowing from bilateral creditors and restrictions on access to affordable finance.
He stressed that despite commitments made by the international community to expand development and climate financing for SIDS and added that the net external resource inflow to SIDS has been on a declining trajectory over the past two decades.
President Muizzu stated that SIDS should not have to make impossible choices such as deciding between funding the establishment of a new school and constructing seawalls.
He went on to urge Multilateral Development Banks (MDBs) and international financial institutions (IFIs) to help enact reforms such as channeling funds through international capital markets given their positive credit ratings and, in turn, lend to SIDS at highly concessional rates and fulfil the promises made to SIDS in the last three decades.
The Maldivian leader proposed that the development partners of SIDS partner with the MDBs and the private sector to scale up private finance flow for SIDS.
Urging SIDS to broaden their vision, the president called on SIDS to aim higher by identifying goals and seeking assistance and support from development partners.
President Muizzu also challenged the commitment and will to direct finance towards where and who needs it the most.
The Maldivian leader then urged development partners to stop viewing SIDS as mere recipients of aid and instead view them as partners in sustainable development.
