UNCTAD advances investment risk-sharing plan for developing economies

Traders Union
All News
Financial Institutions
UNCTAD investment risk-sharing plan

Highlights

UNCTAD's proposed Global Initiative for Investment Risk Sharing at the World Investment Forum 2026 aims to lower risks and unlock capital for developing economies.
The Berne Union and UNCTAD have announced a declaration to enhance trade and investment insurance, while São Tomé and Príncipe secures the first funded ocean-economy project.
In 2026, developing countries saw over 25% fewer new infrastructure, energy, health, and food system investment announcements, with data centre investment dropping by $32 billion.

Forum measures target financing barriers

As reported by UN Trade and Development, the World Investment Forum 2026 is putting forward a proposed Global Initiative for Investment Risk Sharing to help developing countries attract more capital for development. The initiative seeks closer cooperation among governments, development finance institutions, export credit agencies, insurers and investors to expand access to instruments that lower political, regulatory and currency risks.

The forum, organized by UNCTAD and hosted by the State of Qatar, is also producing a declaration of intention with the Berne Union to strengthen cooperation on trade and investment insurance and risk mitigation. Additional outcomes include new partnerships aimed at vulnerable economies and the first funded project of an expanded ocean-economy fund in São Tomé and Príncipe.

These measures are responding to persistent financing constraints, including high borrowing costs and limited project preparation capacity. Discussions at the forum also cover investment in renewable energy, infrastructure and critical minerals, with attention on how mineral-producing countries can build processing and manufacturing industries.

AI and project pipeline remain under pressure

UNCTAD says more than 80% of global foreign direct investment goes to just 20 economies in 2025, underscoring how concentrated capital flows remain. While investment flows rise in the first half of 2026, announcements of new projects in infrastructure, energy, health and food systems fall by more than 25% in developing countries, according to the latest Global Investment Trends Monitor.

UNCTAD's latest figures also show that announced investment in data centres in developing economies falls by $32 billion, raising the risk that poorer countries fall further behind in AI infrastructure. In response, the Digital Infrastructure Investment Catalyser, jointly convened by UNCTAD, the International Telecommunication Union and the World Bank, expands its partnerships and launches an investment checklist and capacity-building resources to help countries prepare projects and secure financing.

A new steering committee will develop principles for responsible AI investment, focusing on transparency, sustainability and development priorities. The effort is intended to guide capital toward digital infrastructure in ways that better align with the needs of developing markets.

Our earlier article on U.S. AI data center expansion explained that soaring financing costs, construction delays and power constraints are making many large projects less credible. We noted that only a minority of planned builds were viewed as realistic, as higher interest rates, cost overruns and growing local opposition weighed on developers’ ability to deliver capacity without undermining investor confidence.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.