FMO is a relatively small player in light of the challenge we face. To achieve the SDGs in the next decade, we need to pool our resources and work with others. Deepening our relationships will enable us to mobilize third-party funds and create investment opportunities to increase our impact in our focus markets.
This is important for several reasons. First, to close the financing gap: in 2014, the UN estimated an additional US$2.5 trillion a year is needed in developing countries alone to achieve the SDGs. Second, to facilitate learning and achieve more by harmonizing the way stakeholders measure and report on impact. Third, to address the lack of bankable projects in these markets. FMO and other stakeholders need to get involved much earlier in the development phase of a project and support projects throughout the entire life cycle.
We will continue to grow our mobilizing activities to increase the capital flow towards developing countries. This entails developing more efficient mobilizing vehicles with commercial investors and insurance companies such as the new Unfunded Risk Participation Program FMO established with Munich Re at the end of 2019. Munich Re will contribute to the SDGs by participating in FMO transactions for up to US$500 million in the next three years.
FMO will increase and strengthen its partnerships with (existing) donors on a national, European and global level. We will continue to manage several public funds on behalf of the Dutch government to invest early on in projects, take higher risks and achieve our higher impact objective. FMO will scale up the investments made through NASIRA, a European Commission financing program, which provides a bilateral loss-sharing scheme between FMO and its FI clients for unlocking lending to migrant, female and young entrepreneurs. Furthermore, FMO will operationalize the Dutch Fund for Climate and Development it recently established together with SNV Netherlands Development Organization, World Wide Fund for Nature and Climate Fund Managers.
We also support the Dutch private sector. We are building a portfolio which will be transferred to Invest International, a new joint venture that will be established in 2020 together with the Dutch government. The joint venture will continue to provide Dutch businesses and commercial banks export finance and investment solutions in emerging markets.
- 1 UNCTAD (2014). World Investment Report 2014.