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Marves – Jakarta, October 17, 2024: Kenya is ready to become the first country to join the Global Blended Finance Alliance (GBFA), an international platform led by Indonesia to bridge the financing gap for sustainable development goals (SDGs) and climate action.
Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, signed the Articles of Agreement (AoA) for the Global Blended Finance Alliance (GBFA) witnessed by Kenya’s Minister of Mining, Blue Economy, and Maritime Affairs, Hassan Ali Joho; Indonesia’s Vice Minister of Foreign Affairs, Pahala Mansury; Presidential Special Envoy for GBFA, Mari Pangestu; and Kenya’s Ambassador to Indonesia, Galma Mukhe Boru. This signing took place a month after the United Nations Development Programme (UNDP), the Tony Blair Institute for Global Change (TBI), and United in Diversity joined GBFA as knowledge partners.
The Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) initiated the creation of this platform during Indonesia’s G20 Presidency in 2022, alongside the Ministry of Finance and the Ministry of Foreign Affairs. Despite a global commitment of USD 100 billion for developing countries in 2022, climate financing still falls short of actual needs.
Developing countries face an annual financing gap of USD 3 trillion for climate action and SDGs. Bridging this gap requires increased investments, innovative financing mechanisms, and strong commitments from both governments and the private sector. The GBFA was established to address the urgent need for a finance platform led by the Global South focused on SDGs and climate action.
Minister Luhut Binsar Pandjaitan stated that this signing would enhance GBFA’s operational capacity on a global scale, particularly in the Global South, allowing the platform to more effectively achieve its strategic objectives.
“We are grateful for Kenya’s participation in the GBFA. This decision reflects their confidence in this platform as a vital means for developing countries to mobilize much-needed funding for SDGs and climate action,” said Luhut.
“GBFA is unique in that it supports its members in developing national platforms that provide structure for SDG- and climate-related development projects, making them more attractive to investors,” he added.
In his remarks, Minister Hassan Ali Joho emphasized that while Kenya was unable to sign the AoA this Thursday, the country remains committed to joining the GBFA. He stressed that blended finance is a crucial tool for developing nations.
Nani Hendiarti, Deputy for Coordination of Environmental and Forestry Management at Kemenko Marves, highlighted the importance of global cooperation for GBFA to make a positive impact.
“GBFA is not just about dollar investments; it’s a step toward a brighter and better world. We invite like-minded nations to support this effort, as future generations will remember those leaders who stood firm in these critical times,” she stated.
