South Africa’s International Relations Minister Ronald Lamola has identified key obstacles blocking private investment in developing nations, with policy instability and weak institutions topping the list. Addressing the 4th International Conference on Financing for Development in Seville, Spain, Lamola explained how frequent regulatory changes and inconsistent frameworks create uncertainty that discourages long-term commitments from investors. The minister stressed that without stronger protections and predictable policies, growth potential remains limited.
Lamola outlined multiple economic challenges, including inflation pressures, currency fluctuations and mounting debt, which reduce governments’ capacity to attract business investment. He proposed solutions such as improved fiscal management, expanded local financial markets and infrastructure upgrades to lower operational costs. The minister particularly emphasised developing sustainable finance strategies with clear environmental and governance standards to guide investment decisions. He also highlighted how multilateral development banks could help by co-financing projects and improving their viability.
The conference brought together governments, financial institutions and private sector representatives to discuss reinvigorating development funding. Lamola urged collective action to strengthen institutions, streamline regulations and build technical skills for preparing investment-ready projects. While acknowledging the scale of the challenges, he expressed optimism that coordinated efforts could unlock funding needed to achieve sustainable development goals and create more stable economic environments globally. The discussions reinforced shared commitments to address financing gaps holding back progress in developing nations.