Ministers and policymakers worldwide spell out bold actions to reverse stagnating investment flows and strengthen entrepreneurship as a driver of inclusive growth.
As global investment faces a second consecutive year of decline, participants at the 16th UN Conference on Trade and Development (UNCTAD16) stressed the need to rebuild confidence, channel finance to sustainable sectors and ensure no country is left behind.
“Investment is about trust – trust in the future, trust in partnership, trust in shared prosperity,” UN Trade and Development (UNCTAD) Secretary-General Rebeca Grynspan told a high-level roundtable meeting on 21 October, “Today, that trust is under strain.”
Shrinking investment threatens inclusive development
According to the latest World Investment Report, global foreign direct investment (FDI) fell 11% in 2024, with investment in sectors key to sustainable development – renewable energy, transport and water – dropping by more than 30%. International project finance – crucial for infrastructure in developing economies – plummeted by 26%.
Most of the world’s poorest countries remain largely sidelined: Least developed countries attracted just 2% of global FDI, concentrated in a handful of them. Without urgent action, billions of people risk watching progress pass them by.
Seizing opportunities in the green and digital transitions
Despite the overall decline, bright spots are emerging. Sustainable finance grew 17% in 2024, reaching $8.2 trillion, driven by the expansion of the green bond market.
Indonesia has developed a strategy for sustainable investment, said Febrian A. Ruddyard, Vice Minister of National Development Planning.
The Southeast Asian nation has been shifting finance to sukuk and green bonds, boosting liquidity for projects spurring economic growth and sustainable development, including investment in renewable energy, infrastructure as well as water and sanitation.
Globally, investment in digital industries is rising, though unevenly distributed. South–South flows are expanding in technology and services sectors, offering new opportunities for diversification.
Panelists from Botswana, the Netherlands, Saudi Arabia and Spain highlighted the potential of aligning investment and entrepreneurship policies with national development strategies, particularly in the green energy and digital economy sectors.
They also emphasized that investment facilitation – streamlining procedures, improving transparency and leveraging digital tools – is key to unlocking private capital for development.
Building ecosystems for entrepreneurship and inclusive growth
Globally, micro, small and medium-sized enterprises make up 90% of businesses providing 70% of jobs and generating half of global GDP.
“When we strengthen their capacity to innovate and connect to global value chains, we multiply the power of every dollar of investment,” Ms Grynspan noted.
Speakers from Colombia, The Gambia, Croatia and Indonesia underscored the importance of society-wide cooperation and joint financing mechanisms to support entrepreneurship, especially in sectors critical to achieving the Sustainable Development Goals.
A forward-looking investment agenda
As the world faces a persistent $4 trillion annual investment gap to meet global development goals, momentum is building around new facilitation frameworks – including the Investment Facilitation for Development Agreement supported by more than 120 members of the World Trade Organization.
The roundtable’s outcomes will help shape global action agenda at upcoming high-profile forums, including the UNCTAD-led World Investment Forum in 2026.