FDI is an important potential source of development finance for least developed countries (LDCs) and can be complementary to official development assistance (ODA). Despite gradual improvements over the years in the legal and regulatory frameworks for investment in LDCs, the pandemic has been a shock to their economies with FDI inflows significantly affected and existing structural weaknesses amplified.
Many LDCs are highly dependent on investment in extractive industries, which has been negatively affected by oil and commodity price shocks, while others are dependent on the travel and tourism sectors which have been among the hardest hit by the pandemic crisis.
A lot still needs to be done to make LDC economies successful competitors for FDI projects. In line with the objective of achieving a truly inclusive and sustainable global economic recovery, it is more important than ever to provide support to institutions that promote investment towards LDCs is more important than ever. This high-level meeting of LDC ministers and business executives will discuss the role of FDI in economic recovery and reconstruction plans. It will seek to advance ideas on how to strengthen the investment climate of LDC economies and the role of investment promotion agencies in channeling investment towards sectors that are key for sustainable economic recovery.
Issues to be addressed
- Ways to improve the capacity of LDC governments to promote and facilitate investment
- SDG-focused strategies for investment promotion and facilitation
- Initiatives to diversify investment in LDCs, including the targeting of investment for SDG-related projects
Speaker(s)
