Powering Progress: Why Private Sector Engagement is Key to Achieving the SDGs

According to the Sustainable Development Goals Report 2024, only 17 percent of the SDG targets are on track, nearly half are showing minimal or moderate progress, and progress on over one-third has stalled or even regressed.

The report suggests that massive investment and more effective partnerships are needed to drive critical transitions across food, energy, digital connectivity, and more, unlocking progress right across the Goals Therefore achieving these ambitious targets by 2030 necessitates the active involvement and innovation of the private sector.

The private sector's involvement is not just beneficial but essential for achieving the SDGs. By mobilizing resources, driving innovation, creating jobs, and adopting sustainable practices, businesses can make significant contributions to a sustainable and equitable future. As we strive to meet the 2030 targets, the collaboration between the private sector, governments, and civil society will be the driving force behind our collective progress.

The private sector's engagement with SDGs is strategically advancing

Francine Munyaneza, CEO and Founder of Munyax Eco a company specialised in solar energy (thermal and photovoltaic) and energy efficiency sectors by selling and installing environmentally friendly and products. 

She shared what pushed her to establish this company in 2013 “I wanted to create an impact in terms of the environment, knowing that with solar energy, you can create water heaters and electricity. My wish was to provide electricity in rural areas as well as hot water mostly in urban areas.”

Her company’s motto is “Save Money, Save Energy, Save the planet”, if achieved an ambition which also contributes to the achievement of SGDs. 

“Apart from reconciling business and clean environment, my goal has also been to ensure that more women are in our mission to provide solutions to clean energy” She noted. 

Francine was speaking during the CEO Roundtable convened by the UN Global Compact. This discussion was organized on 15th May 2024, on the margins of the Africa CEO Forum. Francine and other CEOs of leading companies in Rwanda held an interactive discussion with the Assistant Secretary General and CEO of the UN Global Compact, Ms. Sanda Ojiambo, and the UN Country Team, which once again confirmed the opportunity for the United Nations Global Compact to partner with Rwanda’s private sector to establish a Network of sustainable businesses in the country, adding to the active Ten Global Compact Networks across the continent. 

“What we spoke about,  is the opportunity for the Private Sector to come together, to really work towards achieving the Sustainable Development Goals. The goals themselves are actually investments and business opportunities. So, we are talking about how companies can do good business, but also make sizable contributions to Rwanda’s transformation strategy as well as the goals of the African Union 2063 Agenda” Ms. Sanda Ojiambo said in an interview with journalists after the CEO roundtable. 

The Crucial Role of the Private Sector

Resource Mobilization

The private sector has vast financial resources that can be mobilized to support the SDGs. Investments from businesses can bridge the funding gap that governments and international organizations alone cannot fill. For instance, sustainable business practices and impact investments can channel funds into renewable energy projects, healthcare initiatives, and educational programs, thereby directly contributing to multiple SDGs.

Innovation and Technology

Companies are at the forefront of technological innovation. From developing clean energy solutions to creating new healthcare technologies, the private sector's role in driving innovation is indispensable. These innovations can provide scalable solutions to global challenges, making progress toward the SDGs more efficient and effective.

Job Creation and Economic Growth

The private sector is a major engine of job creation and economic growth. By fostering inclusive and sustainable economic development, businesses can help eradicate poverty (SDG 1) and reduce inequalities (SDG 10). Moreover, decent work and economic growth (SDG 8) are directly supported by the private sector through fair employment practices and inclusive growth strategies.

Sustainable Practices and Corporate Responsibility

Many companies are now integrating sustainability into their core strategies, adopting environmentally friendly practices, and committing to corporate social responsibility (CSR). These actions contribute to sustainable consumption and production patterns (SDG 12), protect life on land and below water (SDGs 14 and 15), and combat climate change (SDG 13).

Public-Private Partnerships

Collaboration between the public and private sectors can amplify efforts to achieve the SDGs. Public-private partnerships (PPPs) leverage the strengths of both sectors, combining public oversight and accountability with private efficiency and innovation. Such partnerships can enhance infrastructure development (SDG 9), improve healthcare systems (SDG 3), and ensure access to quality education (SDG 4).

With the SDG Report 2024 underscoring significant challenges ahead, urgent action is imperative to meet 2030 targets. The private sector's pivotal role in mobilizing resources, driving innovation, and adopting sustainable practices stands as a crucial linchpin. Stakeholders should now heed the call to forge robust partnerships that propel the world towards achieving a sustainable and equitable future on a global scale.