SIDS are uniquely vulnerable to exogenous shocks due to their small size, geographical remoteness, dispersed populations, and the small scale and undiversified nature of their economies. SIDS’ share in global GDP is a mere 0.4%. To develop more resilient and sustainable SIDS economies, it will be important to promote greater local value addition, innovation, and entrepreneurship, modernize infrastructure, attract strategic foreign direct investment, and develop the local private sector with a strong focus on blue, green and digital economies and related industries.

Accelerating blue, green and digital inclusive growth in SIDS will require significantly increased access to private finance for innovative, domestic small and mid-size businesses and infrastructure investment projects. Blended finance is one solution, where public and private capital collaborate to bridge the financing gap impeding growth of SDG- and nature-positive businesses and investment projects.

This interactive dialogue will convene governments, private investors, and development partners to explore and share experiences of how to mobilize private investments that fuel inclusive and sustainable economic development in SIDS through blended finance approaches.

The session will also examine the critical role of an enabling policy environment, business support services and technical assistance, catalytic finance, and digital solutions to develop and de-risk pipelines of investment-ready projects that could attract blended financing.

Partners will showcase initiatives that illustrate the role of blended finance in supporting SMEs and projects that benefit vulnerable SIDS communities, including the Global Fund for Coral Reefs.

This dialogue will deepen understanding of the role blended finance can play in driving resilient and sustainable economic growth in SIDS, identify challenges and actionable strategies for mobilizing investment capital at scale, and strengthen cross-sectoral partnerships to drive economic transformation and diversification.

Objectives and key questions

Emphasize the important role blended finance can play to unlock private investment for accelerated SME-led economic diversification and building resilience in SIDS.

Showcase concrete solutions for catalyzing private resources for SDG-positive investments in SIDS.

Generate actionable recommendations and foster greater support for expanding concessional and blended finance in SIDS.

Select questions to be explored

1. What are main impediments for mobilizing more private capital to sustainable enterprises and investment projects in SIDS?
2. How can blended finance play a greater role in private capital mobilization for SIDS?
3. How can we expand use of concessional resources to de-risk private investments?
4. What is your organization doing to enhance flows of private capital for blue, green and digital economy investments in SIDS?
5. What are roles of Governments, development partners, private sector?
6. What are concrete solutions that could be replicated or scaled up for SIDS?
7. How can we work better through partnerships to address barriers and mobilize greater volumes of private finance?

Are you going to be in Antigua and Barbuda?Reach out to sids4@uncdf.org and meet with
our team at the Conference.