Opening Remarks
by
Zuzana Schwidrowski
Regional Dialogue on External Financing and Climate-Resilient Development
Date: 26 May 2025, 9.00 hrs. am
Venue: UNECA Conference Centre, Addis Ababa
Excellencies, Distinguished representatives of Comoros and Cabo Verde, Seychelles, Mauritius, Sao tome and Principe, Guinea Equatorial, Guinea Bissau, Madagascar, Benin, Partners from UNCTAD and across the UN system, and Colleagues
Good morning,
It is my pleasure to warmly welcome you all to the Regional Dialogue on External Financing and Climate-Resilient Development, jointly organized by the United Nations Economic Commission for Africa (UNECA) and the United Nations Conference on Trade and Development (UNCTAD) under the umbrella of the 14th Tranche of the United Nations Development Account.
This gathering is a milestone in our collective journey to empower African Small Island Developing States (SIDS) to access the external financial resources they urgently need to build climate-resilient, inclusive, and sustainable economies.
As you are well aware, SIDS face a unique constellation of structural vulnerabilities. Their economies are typically small, open, and heavily import-dependent. They rely on a narrow set of sectors—often tourism and agriculture—that are particularly sensitive to global shocks, health emergencies, and environmental disruptions. Their geographic remoteness inflates the cost of trade and limits economies of scale. Moreover, limited fiscal space, shallow capital markets, and constrained administrative capacity pose significant barriers to economic diversification and investment in resilience.
Many African SIDS are also disproportionately burdened by unsustainable debt levels. Cabo Verde, for example, has seen its public debt-to-GDP ratio surge to 109% in 2025, reflecting both past investment needs and the lingering effects of the COVID-19 pandemic. Comoros has recently moved from a moderate to high risk of debt distress, limiting its room to manoeuvre under IMF lending arrangements . This underscores why fiscal prudence must go hand-in-hand with creative approaches to financing development.
In this context, Comoros and Cabo Verde were selected as pilot countries under the DA 14 project not only because of their exposure to these challenges, but also because of their demonstrated political will to reform and innovate. They are charting a path forward that many others across Africa can learn from.
Through this project— “Mobilizing External Financial Resources Beyond COVID-19 for Greener, More Equal, and Sustainable Development in Selected Vulnerable SIDS”—UNECA, UNCTAD, and our partners aim to strengthen country capacities to design and implement coherent, climate-responsive financial strategies.
Over the next two days, we will:
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Present and validate the national financial strategies and roadmaps for Comoros and Cabo Verde, which integrate tools like green bonds, blue bonds, diaspora bonds, and debt-for-climate swaps;
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Identify institutional and regulatory reforms needed to align national systems with external financing opportunities;
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Examine ways to improve coordination between Ministries of Finance and Environment, and strengthen public financial management for climate;
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And facilitate peer exchange with other African SIDS, including Mauritius, Seychelles, and São Tomé and Príncipe, who can share lessons on policy innovation, risk mitigation, and private sector engagement.
Our aim is not just to diagnose the financing gap—but to narrow it. For example:
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In Comoros, the climate financing needs identified amount to more than USD 1.4 billion, yet only a fraction has been mobilized. A pipeline of nine adaptation projects is ready and in need of support.
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In Cabo Verde, despite improvements in debt management, the country faces a USD 103 million annual SDG financing gap. Innovative platforms like Blu-X are being developed to position the country as a hub for sustainable bonds and climate-linked investments.
This dialogue is also an opportunity to reflect on how international financial architecture can better serve the needs of vulnerable countries. African SIDS, despite their middle-income classifications, often lack access to concessional finance. Many are penalized for their income rather than supported for their fragility. This calls for greater flexibility in eligibility criteria, enhanced access to global climate funds, and regional mechanisms that reflect the lived realities of SIDS.
As we look ahead, the next steps will include:
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Finalizing the national roadmaps based on your feedback during this dialogue;
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Supporting countries in operationalizing these strategies through capacity-building, technical assistance, and investment facilitation;
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And convening a follow-up virtual regional workshop later this year to sustain the momentum and disseminate lessons learned across the continent.
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Extending this exercise to additional African countries.
Excellencies, Distinguished representatives of Countries and Colleagues,
Let me close by emphasizing that UNECA remains firmly committed to supporting African SIDS. These nations may be small in geography, but they are large in ambition, resilience, and potential. By strengthening regional cooperation, leveraging innovation, and aligning financial flows with national priorities, we can move closer to a future where climate resilience and sustainable development are not aspirational ideals—but achievable realities.
I thank you and wish us all a productive and inspiring dialogue.