The trend in sustainable development goals (SDG)- relevant investment is less favourable for least developed countries (LDCs) including Malawi, the United Nations has said.

In its January 2022 Investments Trends Monitor, the United Nations Commission for Trade and Development (Unctad) said in 2021, SDG investment project numbers in LDCs declined by a further 17 percent, after the 30 percent fall in 2020.

Reads the report in part: “The recovery of investment flows to SDG-relevant sectors in developing economies, which suffered significantly during the pandemic with double-digit declines across almost all sectors, remains fragile.

“The number of SDG-relevant investment projects in developing economies rose by only 11 percent. Renewable energy and utilities continue to be the strongest growth sectors, especially through international project finance.”

However, despite the gloomy outlook for SGD-relevant investments, the outlook for global FDI in 2022 is positive.

Unctad figures show that global foreign direct investment (FDI) flows showed a strong rebound in 2021, up 77 percent to an estimated $1.65 trillion, from $929 billion in 2020, surpassing their pre- Covid-19 level.

Developed economies saw the biggest rise by far, with FDI reaching an estimated $777 billion in 2021 – three times the exceptionally low level in 2020.

FDI flows in developing economies increased by 30 percent to nearly $870 billion, with a growth acceleration in East and South-East Asia (+20 percent), a recovery to near pre-pandemic levels in Latin America and the Caribbean, and an uptick in West Asia.

Of the total increase in global FDI flows in 2021 ($718 billion), more than $500 billion, or almost three quarters, was recorded in 

 developed economies.

“Recovery of investment flows to developing countries is encouraging, but stagnation of new investment in least developed countries in industries important for productive capacities, and key SDG sectors – such as electricity, food or health – is a major cause for concern,” said Unctad Secretary- General Rebeca Grynspan.

Meanwhile, data from the Malawi Investment and Trade Centre (Mitc) shows that the country chalked up $154.6 million (about K127.33 billion) in investment deals between June and July 2021, amid Covid-19 pandemic

 The figures indicate that out of the $154.6 million investments Mitc recorded, $119.2 million (about K97.52 billion) came from FDIs while $35.4 million (about K28.99 billion) is from local investments.

Mitc investment promotion manager Modie Chanza is on record as having said despite the global spread of the virus, which has led to a drop in FDI, Mitc continues to woo investments to the country.

In Malawi, most FDI has been directed to the energy sector followed by manufacturing and mining sectors, according to Mitc

The post SDG-relevant investment for Malawi—UN appeared first on The Nation Online.