The document discusses sustainable development in Angola and strategies for financing its sustainable development agenda from 2015-2030. It outlines the pillars of sustainable development as defined by the UN, including people, planet, prosperity, peace, and partnership. While Angola has made progress towards its Millennium Development Goals through government and foreign aid, more work remains. The Sustainable Development Goals replacing the MDGs require partnership across all sectors. Financing the goals will require trillions annually, which can come from domestic private sector investment mobilized through public-private partnerships using official development assistance, public finance, and incentives for private investments supporting multiple goals.
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Angola SDGs Private Sector
1. The Private Sector Role
in Financing the 2015 –
2030 Angola Sustainable
Development Agenda
Leveraging Billions to Mobilize Trillions to Action
2. 1. What is Sustainable Development?
Sustainable Development is a process for meeting human
development goals while in one hand maintaining the
ability of natural systems to continue to provide the
natural resources and ecosystem services upon which the
economy and society depend and in another hand that this
development is continuously self-sustained by the local
communities and participants.
3. 1.1 The Pillars of Sustainable Development?
The United Nations defined five critical areas for sustainable development
for 2015 – 2030:
People: that human beings have dignity, health and are free from hunger
and poverty
Planet: That we use our planet resources to support present and future
generations
Prosperity: That all human beings enjoy economic and social prosperous
lives
Peace: That the planet social fabric is inclusive and free from violence
Partnership: That local and international interests blend together to
achieve common goals
4. 2. Why is Sustainable
Development
important for Angola?
2.1 Replacing the Millennium Development Goals with the Sustainable
Development Goals
5. 2.1.1 The Millennium Development
Goals
The eight (8) Millennium Development Goals (MDGs)
adopted in 2000 where mostly focused on human welfare
by attacking developmental needs individually such as
eradicate poverty, achieve universal primary education,
promote gender equality, reduce child mortality and
improve maternal health, combat HIV/AIDS, malaria and
other diseases, to ensure environmental sustainability and
develop a global partnership for development.
6. 2.1.2 What has Angola done up to now
and what is left to do?
From http://www.aidflows.org/ we understand that in 2011 Angola had
a 73% youth literacy rate and a ratio of 34.10% of women in
parliament. In 2012 60.10% of the population had access to improved
sanitation facilities. By 2013 the under 5 child mortality rate was
167.40 per thousand, 101.60 infant mortality rate per thousand and
Angola reached a 91% immunization, a 2.4 prevalence of HIV/AIDS and
a 85% detection rate of tuberculosis. In the partnership area Angola
had 61.87% mobile usage subscription and 19.1% internet usage. This
numbers tell that there is still a lot to be done, especially in the
mortality rate indicators. The role of Official Development Assistance
(ODA) has been significant in achieving these goals as in 2014 alone
Angola received 20.79 millions of US Dollars to which the Angolan
Government added substantial resources to aid developmental efforts,
especially in the area of education and health. However, participation
from the private sector has been very little.
8. 2.1.3 The SDGs
The MDGs where replaced in the
United Nations (UN) September
Summit by the SDGs that now
comprehend 17 goals:
1. No Poverty
2. Zero Hunger
3. Good Health and Well-being
4. Quality Education
5. Gender Equality
6. Clean water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry Innovation and
Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
12. Responsible Consumption and
Production
13. Climate Action
14. Life Below Water
15. Life on Land
16. Peace, Justice and Strong
Institutions
17. Partnerships for the Goals
9. 2.1.3 The SDGs
A brief look into the new goals reveals that no single
government, private entity, development agency or other can
work alone and that that it is not possible to work just on one
single goals without working on the others. For example peace is
at the same time the conduit for prosperity, zero poverty and
hunger and preserving life on the planet but also it is also an
aim. Thus public, private, national and international and local
communities have to work together to achieve these goals.
10. 3. The Bases a Sound
Design, Finance and
Implementation of Angola
Sustainable Development
11. 3 The Bases a Sound Design, Finance and Implementation
of Angola Sustainable Development
Taking from the challenge launched in point 2.1.2 and 2.13, it is
necessary that all forces are joined together to achieve the complex,
ambitious but attainable SDGs. The basic principle for the SDGs is
financing and implementation and that both financing and
implementation are jointly achieved. On the finance side, it is the UN
estimate that it will be necessary three (3) trillions a year just to
finance de developing world alone. Thus the billions of both local
government efforts and ODA are no longer enough. It is necessary to
mobilize trillions of dollars to achieve the goals. Where will all this
money come from? Well it is also UN estimate that in principle the
trillions of Dollars necessary to finance the SDGs are available and
mostly held by the private sector. Thus, the gross part of this money
will come from Domestic Resource Mobilization. Privet sector money
could be channelled via banks and by the private investors directly. The
challenge is now on how to mobilize the private sector to go after
development goals.
12. 3 The Bases a Sound Design, Finance and Implementation
of Angola Sustainable Development
The basic pillars for the finance and implementation of the SDGs
are the following:
A transparent and efficient government and the administration of
public resources
Partnership and capacity building by international partners such
as the World Bank and International Monetary Fund (IMF) and the
transfer of technology by the most developed countries to the
least ones
Private sector engagement and ownership of a share of risk on
the SGDs
Local communities engagement
Participation of all citizens at all levels
13. 4.How can Angola Take
Ownership on Mobilizing
Resources to Finance and
Implement the
Sustainable Development
Agenda?
14. 4 How can Angola Take Ownership on Mobilizing Resources to
Finance and Implement the Sustainable Development Agenda?
The development process has to be owned by the locals
by building a sound and sustainable strategy for
financing the development. Sustainable finance means
that the investment of money in development is
recoverable, that is, the investors, both state and
private can have returns on their investments and that
these returns will be continuously used to finance the
SDGs. In the case of Angola the basic should be using the
current ODA resources and public resources in key areas
to attract investment from the private sector.
15. 4.1 Using Resources from Official Development
Assistance
Although official development assistant can be still used in the
form of grants (money that is given with no return, like an offer)
but this money can be used in areas were public and private
entities can participate. There is already a share of the Angolan
Government Contribution for the MDGs such as the contribution in
building schools and hospitals which are in the national
development plan. But few is done with the private sector. Some
of the money of the ODA could be used to finance private
developmental projects such as developing sound agriculture
practices with a percentage of participation of the private entity,
lets say that ODA gives 30% of the funds that would specifically be
aimed at developing the climate friendly agriculture practices,
while the private entity takes the 70% of its normal activity.
Another area of interest is the training and capacity building of the
government in the area of public administration, technology and
taxation systems where money could be invested to train and to
install sound mechanisms.
16. 4.2 Public Finance
In the same way as the ODA public finance, besides
guaranteeing the basic needs of the population such
health, education and security, this money could be
blended with the private where joint interests can be
achieved. For instance in the health area private money
could be used to make huge investment in the
development of vaccines while the government uses the
public money in the form of guarantees and small grants
to cover the risky part of the business.
17. 4.3 Private Finance for the SDGs
The private sector should realise that achieving profit and
contributing for social well-being do not conflict with each
other. In fact it is more profitable and sustainable for the
private sector to achieve both goals simultaneously. The
private sector could take responsibility in implementing some
of the goals such as investing in the clean energy sector. A
single action in one sector can conjointly contribute for
several SGDs. Take the investment of the private sector in
developing a wind and solar power plant for instance:
Although the first and primary area of action is developing
and delivering affordable and clean Energy, the private sector
can also achieve several other goals as listed below:
18. 4.3 Private Finance for the SDGs
Good Health and Well-being: clean energy contributes to climate
preservation and thus results in more healthy humans;
Quality Education: in the development process of the clean energy
the private sector will demand employment from quality
professionals that works as a pressure mechanism for other private
institutions and the government;
Industry Innovation and Infrastructure: this investment will be on
the edge of technological innovation and best infrastructures;
Reduced Inequalities: The private sector can accept the challenges
of bringing inequality to zero in the workforce and contribute to
the local community where the power plant is installed;
Responsible Consumption and Production: The production of clean
energy in itself is responsible as it uses renewable natural
resources
Climate Action: Producing clean energy helps in reducing the
emission of carbon into the atmosphere.