SEVILLE, Spain, July 2 (Xinhua) -- At the Fourth United Nations Conference on Financing for Development (FFD4), global partners announced a new Action Plan to scale up private sector investment in developing countries through blended finance.

A key outcome under the "Compromiso de Sevilla," the plan includes the launch of a UN-supported Borrowers' Forum to help direct financing to underserved markets. UNCTAD Secretary-General Rebeca Grynspan introduced the plan, which focuses on addressing poverty, economic growth, and climate risks by combining public resources with private capital.

The initiative includes a special track for Least Developed Countries (LDCs) and Africa, aiming to tailor blended finance strategies to local contexts and boost investment in priority sectors.

A broad coalition backs the effort, including the OECD, African Union Commission, UN Capital Development Fund, UN Economic Commission for Africa, and development agencies from Finland, Norway, and Switzerland, alongside private sector groups like the GISD Alliance and Convergence Blended Finance.

Despite global financial assets doubling to 482 trillion U.S. dollars in the past decade, only 5 percent is invested in developing countries (excluding China), with even less reaching the world's 44 Least Developed Countries, home to 880 million people.

The Action Plan sets measurable goals: endorsements from 16 OECD countries and 54 developing countries by March 2026, and implementation starting June 30, 2026. It aims to standardize scalable blended finance models aligned with national and global development priorities.

UNCTAD emphasized that as traditional aid streams decline, blended finance is gaining traction as a key tool to mobilize private capital for development. The Action Plan is one of several proposals supporting the FFD4 Outcome Document. ■