Driving Industrial and Inclusive Economic Transformation: Financing, Innovation and Sustainable Growth in Agricultural and Blue Economy Value Chains (HLPF 2026 Side Event)

Good afternoon, colleagues and all participants following this session live on UWEB TV. Good afternoon in this room and greetings for the participants attending online. On behalf of the Government of United Republic of Tanzania and the United Nations Capital Development Fund, in collaboration with UNDP and UNIDO, it is a pleasure to welcome you all to this high-level side event titled Driving Industrial and Inclusive Economic Transformation: Financing Innovation and Sustainable Growth in Agricultural and Blue Economy Value Chains. Warm appreciation also goes to colleagues joining virtually through the UN Web TV. Your engagement is highly valued. Allow me to recognize the distinguished groups Joining us today, we have ambassadors and permanent representatives from various member states, ministers and senior government officials, including members of parliament from various countries and our own country in Tanzania, responsible for industry, finance, planning, agriculture, blue economy, and innovation. Leaders from UN agencies, including FAO, UNDP, UNIDO, and UNCDF; representatives of regional bodies, development banks, and financial institutions; private sector leaders, SME representatives, and cooperative actors; investors and value chain partners engaged in industrial transformation; academia, research institutions, and think tanks; also civil society organizations contributing to inclusive growth and economic resilience; Your collective expertise and perspectives enrich this dialogue today, and we thank you for being here today. This event aims to examine how financing, innovation, LNG-enabled productivity, and integrated value chain development can accelerate industrial and inclusive economic transformation globally. We will explore practical pathways for strengthening agricultural and blue economy value chains, expanding productive employment, and advancing SDGs across diverse national contexts. I also wish to extend special recognition to our guest of honor, Dr. Tausi Kida, Permanent Secretary, President's Office of Planning, and Executive Secretary of the National Planning Commission. Her leadership and presence elevate this dialogue today. We thank you, Dr. Tausi. And a round of applause for her. I also wish to acknowledge and sincerely appreciate the leadership and support of His Excellence Ambassador Togolani Mavura, Permanent Representative of the United Republic of Tanzania to the United Nations, together with the entire team at the Permanent Mission. Their guidance has been instrumental in convening and delivering this event. Another round of applause for them as well. Thank you so much, Ballozi. To begin our proceedings, I now invite various speakers to speak, but allow me to acknowledge the presence of various people at the high table. We also have a member of parliament from Tanzania. Can you please wave a hand? Honorable Machingi, thank you very much for joining us today. We also have a representative Chief Finance Officer from the UNCDF. He will give remarks as part of the opening session, Mr. Karan Vardhanian. I hope I pronounced it correctly. Thank you. We also have, finally, from the high table, Ms. Fatma Hokal from the United Arab Emirates. Thank you for coming and joining us. To begin our proceedings, I now officially invite Mr. Karen Vardanyan, Chief Finance Officer of the United Nations Capital Development Fund, to deliver the keynote message. Please welcome.

Thank you so much. Good afternoon, Excellencies, distinguished guests, colleagues. It's my distinct pleasure to offer opening remarks on behalf of the United Nations Capital Development Fund. I warmly welcome you to this dialogue alongside our co-host, the United Republic of Tanzania, and our partners UNDP, UNIDO, and FAO. I would like to extend a particularly warm welcome to Dr. Tausi Kida, Permanent Secretary of Tanzania's National Planning Commission, whose presence here reflects Tanzania's deep commitment to translating national vision into investable reality. We are here because there is a gap, not of ambition, but architecture. The world has made bold commitments to industrialization, to inclusive growth, to the Sustainable Development Goals. What is really missing is the financing architecture to translate those commitments into action at the local level. With 36 countries presenting voluntary national reviews here in 2026, it's the right place to ask, how do we finance the transformations we have all committed to? And how do we ensure that finance reaches the value chains, enterprises and communities where it is mostly needed? And speaking of mostly needed, it's obviously the least developed countries that face a financing gap of around $300 billion every year until 2030. This is the scale of the shortfall between the ambition in our resolutions and the capital reaching the ground. The global development finance system, with over $1.3 trillion in MDB and DFI commitments in the last decade, has by and large bypassed the smallest deals in the highest-risk markets— the very countries that need investments most are the ones considered too risky, too small, or too complex. Structural barriers such as limited MSME access to credit, thin domestic capital markets, missing infrastructure, and regulatory gaps compound the challenge, and climate-related vulnerabilities place additional pressure on already constrained public financing. Again, the problem is not really the lack of capital, It's that capital does not flow to where it's needed most. That's the market failure that UNCDF is created to resolve, and it's why our mandate is more relevant today than ever. UNCDF's mandate, enshrined by the UN General Assembly in 1966, was reaffirmed just last year in Seville in the Compromiso de Seville to offer catalytic, concessional and first-loss capital with a view of de-risking markets and crowding in larger volumes of capital, especially in LDCs, SEEDs, and fragile settings— the markets where the financing gap is deepest and where access to capital is most scarce. UNCDF acts as a strategic financing partner, working with the UN, partners, and investment community to help governments unlock finance, providing financial additionality that turns development commitments into investable opportunities. Across our portfolios, every UNCDF dollar invested has generated $4 in total capital mobilized, meaning that scarce ODA is being used to build markets that attract larger, sustainable flows of finance. Now coming to our co-host country, Tanzania. We are extremely pleased to co-organize this event with Tanzania. Our co-host today is more than a Gracious partner, Tanzania is a living demonstration of what this kind of finance, designed from the outset to bring others in, can achieve. Over the past decade, UNCDF has worked across multiple sectors in Tanzania, mobilizing finance through a variety of programmes. I shall mention maybe a few examples. In clean cooking, for instance, with more than 32,000 public and private institutions, which still in Tanzania must switch from the use of firewood and charcoal to cleaner cooking solutions. This is both an area that is huge developmental impact, that can have huge developmental impact. At the same time, it carries a huge market opportunity. With the European Union funding and collaborating with our UN partners, UNCDF has helped increase the clean cooking from 7% in 2021 to 28.6% in 2026, contributed to the creation of 27,000 jobs, both direct and indirect, while supporting nearly 5,000 businesses. Another example is from Tanzania related to the youth employment and youth entrepreneurship, which is declared as national priority by the government. In PESA Tech Accelerator for fintech and youth entrepreneurship, we have supported 22 startup businesses unlocking $13 million in investment and facilitating more than 100 partnerships with financial institutions. Another example is the programme called Local Climate Adaptive Living, LoCAAL, where in Tanzania we have helped unlock $12.3 million to scale up to investments, expanding LoCAAL in 18 new coastal districts. And one other example that I would like to finish the The example is the green bond that has been issued in Tanga, where essentially this has been the first country in Africa to issue a subnational green bond, an innovation that UNCDF helped make possible, connecting local development priorities to global capital markets. Essentially, with $1 million in catalytic support from UNCDF, This has helped— the bond has helped unlock $20.8 million in local currency, 65% from local capital markets. And this initiative is expected to improve access to clean water for about 460,000 citizens in Tanga. So this work is already bearing fruit, and this is precisely because Tanzania has had the vision to open the financial systems, to innovation that it stands today as a model for LDCs across Africa and beyond. So we are extremely pleased, again, to review all of these projects, not as just disparate pieces, but coherent financial architecture, one that UNCDF is already ready to replicate across LDCs in other countries. And our speakers today will explore how blue economy and agricultural value chains can become engines of employment and national revenue. And the commitments and enterprises waiting for investment cannot afford another cycle of pledges. And let us commit today to closing the gap and let us move the dialogue towards actionable recommendations and to ensure our commitments translate to measurable change. Thank you.

Thank you very much, Mr. Vardanyan, and a round of applause for him. Thank you very much. It is now my honor to welcome Dr. Tausi Kida, Permanent Secretary, President's Office Planning, and Executive Secretary of the National Planning Commission, to deliver her opening remarks. Please welcome Dr. Tausi. It's on?

Yes. Excellencies, distinguished representatives of the United Nations system, representatives of UNCDF, UNDP, UNIDO, and all the development partners who are here with us today, honorable members of parliament, and especially those from Tanzania who came all the way to join us, and His Excellency Balozie Togolani Mavura, private sector leaders who are with us, ladies and gentlemen, a very good afternoon for you all. On behalf of the Government of the United Republic of Tanzania, it is my great pleasure to welcome you to this high-level side event held alongside the 2026 High-Level Political Forum on sustainable development. I extend my sincere appreciation to the United Nations Capital Development Fund, UNCDF, for co-hosting this event, and to our partners from the United Nations System, UNDP, UNIDO, and all collaborating institutions for their continued support in advancing sustainable development through innovation, investment, financing, and inclusive economic transformation. This event comes at a pivotal moment for Tanzania. Next week, Tanzania will present its 3rd Voluntary National Review, which highlights the country's progress in implementing the 2030 Agenda for Sustainable Development. The review demonstrates important achievements expanding access to clean water, energy, infrastructure, digital connectivity, health services, and domestic resource mobilization. These gains reflect sound policies sustained investment, strong leadership, and partnerships that we have. This report next week will be delivered and will show the progress that we have made so far, but the gaps that we need to look after to ensure that we are on track by 2030. This year also marks the beginning of implementation of Tanzania's 4th Five-Year Development Plan. FYDP4. This is the first implementation phase for our new Development Vision 2050. Our President, Dr. Samia Suluhu Hassan, inaugurated our national vision last year in July, and we are starting, commencing the implementation this year, July. The aspiration for this vision is for Tanzania to transform into a high-middle-income country by 2050, to be a $1 trillion economy, and with that also, we have an ambition to have zero absolute poverty by 2050. While the VNRR reflects our progress, The 5-year development plan, which will be the first 5-year roadmap to start implementing this vision, charts the path towards achieving a competitive, inclusive, and resilient economy that prioritizes industrial development, agriculture modernization, blue economy value chain, digital transformation, and climate resilience and human capital. development. With this, I should say, our first 5-year development plan will work on the gaps as we are working towards the 2030 Agenda. Today's dialogue is really timely for our country, and with this working towards inclusive development but also looking at aspects of agriculture and industrialization to ensure that our economy is inclusive. Where are we in terms of economic development in Tanzania? Our growth path is positive. We are now at 4.9% of GDP growth rate. We are anticipating this year to reach around 6. With this also, what we have in mind is to ensure that this growth becomes inclusive and that we work also more on poverty reduction. We find that working on transformation of our economy, working on agriculture, which takes about 24.3% of our GDP, economy and which employs about 55.1% is really important sector to work on. But also agriculture, we need to focus on productivity and with this, the focus on industry and especially on manufacturing is really crucial as we have to have a linkage between agriculture and by agriculture here I also include crop, livestock, and fisheries, the blue economy. With this, we find a bit on our statistic, there is more growth on industry that is mining-related, but a bit of a snag on manufacturing-related. I find the discussion this afternoon to be very important to be able to link the industrial part, improvement of value chain, but also productivity and linking with agriculture sector. Tanzania believes that achieving the goals that have been set requires integrated planning, evidence-based policymaking, and broad partnership through an inclusive process involving government, the private sector, civil society, academia, development partners, and United Nations system. This spirit of collaboration must continue as we move from reporting progress to accelerating its implementation. As I wind up, I encourage all participants to share practical experiences, strengthen partnership, and identify innovative financing solutions that will help turn our shared aspiration into tangible development results. Together, let us mobilize investment, strengthen productive sector, and accelerate the achievement of Sustainable Development Goals. With this, I wish a very fruitful discussion for our sideline event. Thank you.

Thank you very much, Dr. Kida, for those insightful reflections. Another round of applause for her as well. Thank you. We are now moving into the panel conversation, an opportunity to hear directly from institutions shaping value chain development, industrial competitiveness, and catalytic financing across regions. For the smooth running of the session, kindly note that speaker profiles will be projected on the screen as each speaker takes the floor, and due to time limitations, profiles will not be read aloud, but you have a chance to read the profile on the screen while you're listening during the panel introduction. At the end of the panel session, we will take a maximum of 3 questions or contributions, and we kindly encourage participants to prepare their questions or brief contributions in advance because we have a very limited time and each panel speaker has a maximum of 3 minutes. I hope we'll be able to stick to that. My name is Nesiya Mahenge. I'll be the moderator for the panel session and for the entire side event. So to start, let us begin with Angelica Jacome, Director of the FAO Liaison Office to the United Nations. Angelica.

Thank you, Madam Moderator. Aquatic food systems are a core element of a blue economy agenda. They provide essential micronutrients, omega-3 fatty acids, and high-quality proteins critical for healthy diets. In Africa, for example, aquatic animal foods contribute around 19% of animal protein availability. Furthermore, 65 million people are employed in primary production in aquatic food systems, around 6.1 million in Africa, and around 600 million depend on them for their livelihoods. Thus, aquatic foods are also economic and social drivers. Tanzania's productive inland waters and ample coastline mean that aquatic foods both feed the nation and generate sustainable livelihoods. Tanzania is the world's 6th largest producer of inland capture fisheries with around 440,000 tons a year. It is also the world's 3rd largest producer of farmed seaweed. It has ample blue economy opportunities for marine and inland capture fisheries as well as aquaculture across its territory, many already in operation. Given this potential and the Government of Tanzania's commitment to the sector, Tanzania works closely with FAO to advance the blue transformation by supporting sustainable expansion of its aquaculture sector, strengthening the effective management of all its fisheries, and upgrading the sectoral value chains. These efforts aim to maximize the contribution of fisheries and aquaculture to food security, nutrition, livelihoods, and economic growth in line with the national priorities and with FAO's blue transformation agenda. FAO and its partners are working with the government of Tanzania across a wide range of projects and interventions in the sector. In fact, over the past 5 years, Tanzania has received more direct technical assistance from FAO in aquatic food systems than any other country. It has become both a leader and an example of partnership and commitment to developing its fisheries and aquaculture, and it must continue to place the sector at the very top of its blue economy agenda. FAO and Tanzania have worked together under the EU-Germany-funded Fish4ACP project. The project has focused on strengthening Lake Tanganyika's fish value chains that support around 27,000 fishers and 1,000 fish processors. This includes 850 women that receive direct support to improve fish processing, handling practices, and business skills. The project also supported fisheries management and improved knowledge of the size of fish stocks in the lake alongside updated regulations for the sector. Much of Fish4ACP's work focused on small-scale fisheries, which must remain central as Russia— as the rush to deliver a blue economy. Tanzania has been a global leader and a role model in this area, becoming the first country in the world to develop a national plan of action to implement the FAO voluntary guidelines for securing sustainable small-scale fisheries, which it did both for the mainland and for Zanzibar. To ensure that women's role in the blue economy is recognized and fully supported, Tanzania established a gender desk within the Ministry of Fisheries, and with FAO's support, it strengthened Tanzania's Women Fish Workers Association, or TAFAWA. The women from TAFAWA also received training in village savings and loan associations and village community banks. Helping improve financial awareness and access to finance so communities can invest in and lead the development in their own regions. This close collaboration has also included interventions to help Tanzania to combat illegal, unreported, and unregulated fishing, implement the Port States Measures Agreement, and work with the Indian Ocean Tuna Commission to improve the state of tuna stocks in the Indian Ocean. However, even improving fisheries to their maximum potential cannot satisfy the rising demand for aquatic The growth of sustainable aquaculture is key to enhance supply and generate employment. Recently, FAO also partnered with the Lake Victoria Fishery Organization and the WorldFish on the EU-funded TRUFISH project to enhance aquaculture development through training in risk analysis and aquatic animal health in Lake Victoria.

30 seconds remaining, sorry.

Yeah, okay. And the transformation of its value chains. I would like to close with 3 critical messages in lieu of time. People's livelihoods and food security must be at the center of blue economy strategy. Decisions must be based on data available, on the best data available and scientific evidence, while taking into account Sorry. Socioeconomic and environmental impacts. FAO will continue to strengthen the national capacities on data collection, statistics monitoring, and evidence-based decision-making to support the sustainable development and conservation of aquatic food systems. Tanzania is a global leader and role model for its efforts to support small-scale fisheries, ensuring employment, food production, and secure livelihoods in the overall framework for a blue economy. FAO acknowledges and applauds this leadership. Thank you for your attention, and we look forward to continued partnerships with Norway and Tanzania to achieve a blue transformation. Thank you.

Thank you very much for the greatest reflections, and another round of applause for her. We really appreciate it. We're now moving to Captain Dr. Hamad B. Hamad, Principal Secretary for the Ministry of Blue Economy and Fisheries in Zanzibar. Captain Hamadi was unable to join us in person today, but he has kindly shared his contribution through a recorded message which we'll play and we'll be able to hear from him soon.

First and foremost, Please accept my sincere apologies for not being able to join you in person today, but I'm pleased to share my remarks through this recorded video. Tanzania welcomes this timely discussion on strengthening blue economy value chains and the strategic role of LNG in advancing sustainable industrialization. For Zanzibar, as part of the United Republic of Tanzania, the blue economy is central to our development. As an archipelago of 55 islands, With nearly 1.5 million people, most of whom live along our 220-kilometer coastline, our economy and livelihood depend heavily on fisheries, aquaculture, and coastal tourism. Fisheries and aquaculture provide direct employment to approximately 160,000 people, of whom about 17% are women, and support the livelihood of nearly 40% of Zanzibar population. The sector contributes between 5% and 8% of GDP. While we have made significant progress in strengthening the legal, policy, and institutional framework for blue economy, further investment in value addition, modern infrastructure, technology, and affordable financing remain essential to unlock sector full potential. Our priority is to move beyond exporting raw marine product by developing value-added industries through modern fish ports, landing sites, processing facilities, cold chain systems, and efficient logistics. These investments will reduce post-harvest losses, improve product quality, create jobs, and increase export earnings. Aquaculture also offers tremendous potential. Expanding sustainable mariculture, including finfish, shellfish, sea cucumber, seaweed farming, will strengthen food security, create employment, reduce pressure on wild fish stocks. Achieving this requires investment in research, technology innovation and skill development. Reliable and affordable energy is equally important. Tanzania views LNG and natural gas as practical transition fuels that can power fish processing, cold storage, ice production, and other marine industries while supporting our gradual transition to renewable energy. This will improve industrial productivity, lower production costs, and enhance competitiveness. Unlocking the full potential of the blue economy requires affordable financing, particularly for small enterprises, cooperatives, women, and youth. Innovative financing and strategic partnerships can reduce investment risk and accelerate sustainable industrialization. In Zanzibar, this is reflected in establishment of the first off-grid fish processing facility in Pemba and implementation of the regional first biodiversity credit initiative advancing sustainable fisheries, marine conservation, and coastal livelihoods. In conclusion, Tanzania and Zanzibar remain committed to building a resilient, inclusive, and investment-driven blue economy. Together, through innovation, clean energy, value addition, strong partnership, we can transform our marine resources into sustainable growth, decent jobs, and shared prosperity. Thank you. Thank you.

Thank you very much. We have the honor of being joined by the Republic of Indonesia. In this case, we were supposed to have Ambassador Febrian Rudiat, the Vice Minister of National Development Planning of the Republic of Indonesia, But today he is represented by Mr. Setyo Budiantoro, and we would like to hear from you, Mr. Setyo. Indonesia has extensive experience— How can regional cooperation, sustainable ocean governance, and investment in marine-based industries strengthen blue economy competitiveness and support inclusive growth?

Thank you for the opportunity. So as the world's largest archipelagic country, Indonesia sees the blue economy not only as a sectoral agenda, but as a strategic pathway for food security, employment creation, industrial upgrading, and sustainable growth. Indonesia has launched its Blue Economy Roadmap 2023 until 2045, with long-term targets to increase the maritime sector's contribution to GDP to 15%, expand maritime marine protected areas to 97.5 million hectares, and strengthen maritime employment to 12%. So allow me to highlight 3 practical lessons. First, marine production system must link productivity, sustainability, and inclusion. Indonesia priorities include capture fisheries and aquaculture, marine-based manufacturing, maritime trade and logistics, tourism, renewable energy, biotechnology research, and marine conservation. This reflects our belief that blue economy industries must begin with the people, ecosystem, and local production. Second, innovation is essential for moving from marine production to marine value creation. Competitiveness depends not only in production in volume but also in quality, standards, storage, logistics, processing capacity, data, and research. In our 2025-2029 National Medium Development Plan, Indonesia prioritized integrated, modern, and sustainable fisheries productivity, processed marine products, marine transport industry, science, technology, innovation, and human resources for the blue economy. Third, technology transfer must be practical and connected to financing. Indonesia experiences shows that technology is useful for coastal communities, fishers cooperatives, as, as SM is only when it is affordable, maintainable, and linked to real market opportunity. So in 2023, Indonesia issued the world's First publicly offered sovereign blue bond aligned with ICMA principle, raising around $150 million to support sustainable marine and blue economy objectives. Building on this experience, Indonesia developing a blue economy budget taking to identify, monitor, and evaluate budget outputs that support blue economy targets. This process is also being used to identify potential underlying projects. For Indonesia 2026, we will also have Blue Bond issuance with indicative allocation around $420 million. This includes integrated fishing village facilities, it means inclusive economy, Environmental-friendly fishing, fish engines for small-scale fishing, aquaculture facilities, salt industry refertilization, mangrove rehabilitation, and marine research and innovation prototypes. In conclusion, Indonesia believes that advancing blue economy industry requires more than marine resources. It requires stronger protection system, innovation, technology transfer, financing, standard, and partnership that allow coastal and marine communities to move up to the value chains. Indonesia stands ready to strengthen cooperation with Tanzania and other partners, including Thank you very much.

And allow me to now shift our focus toward the industrial innovation and competitiveness. I invite Mr. Ralph Bredl, Director and Representative of UNIDO to the United Nations. Based on UNIDO's work, how can countries reinforce industrial policy, accelerate technology adoption, and strengthen quality assurance systems to expand manufacturing capacity and position SMEs for export-oriented growth?

The floor is yours.

Thank you very much, Madam Moderator. Thank you very much again, Madam Moderator. Excellencies, Ladies and gentlemen, dear colleagues, first of all, thank you very much for inviting NIDO to be part of this event, and congratulations to Tanzania for presenting its Voluntary National Review during this year's HLPF. Let me go straight to my main message, which is that industrialization remains one of the strongest engines of productivity, employment, technology, learning, and income growth. But of course, this engine must serve people and it also needs to serve the planet. For Africa, this discussion is very timely. I mean, as we just adopted here in May in the General Assembly, the 4th decade for Africa's industrialization, which reaffirms the importance of industrialization for the continent. So today, competitiveness of countries including Tanzania depends less on low labor costs and natural resources, but on firms' ability to innovate, absorb technologies, and raise productivity. So in that sense, we welcome very much Tanzania's Development Vision 2050 and the strong focus it places on creating a competitive economy based on science, technology, research, development, and digital transformation. So, colleagues, Tanzania has achieved remarkable progress. I mean, all the figures are included in your VNR. I mean, in terms of infrastructure, when it comes to electricity access, renewable energy, internet penetration, I mean, we welcome and applaud you for that. At the same time, of course, there remain challenges, and some of the challenges were already mentioned. There are, of course, in the area of financing, a tax base which remains narrow, and also, let's say, the non-agricultural employment, which is largely still in the informal sector. And last but not least, the manufacturing sector, I think, now stands at about 8%, but certainly there is room for improvement. So to answer your question, Madam Moderator, I mean, how industrial policies and innovation ecosystems can help here, let me make 5 quick points. So the first point is about industrial policy. Needs to be what's called mission-oriented. So it first of all has to have a long-term planning horizon, but it doesn't just need to serve a vision, it also needs to be followed up by a sequence of strategies which are linked to concrete priority sectors, locations, infrastructure corridors, and productive capabilities. So for Tanzania, this means aligning its Vision 2050 with long-term development plans and to focus on high-potential value chains. And concretely, to be very concrete here, these may include agro-processing, the blue economy, the very topic of our event today, maritime services, LNG-based industrial inputs, and the logistics and packaging industries that support them. My second point is about innovation, the centrality of innovation. In many developing countries, innovation is not primarily about inventing new technologies. It's about adapting existing technologies and applying knowledge in new ways and creating value through that. And as mentioned before, I mean, Tanzania has already created good foundations for that given your internet penetration and improved access to electricity. So the next step would really be now to accelerate the adoption of those digital technologies, AI, circular economy solutions, bio-based industries, and also nature-inspired innovations. My third, third point is about financing, because productivity of course requires investments. Public budgets alone are not able to meet the scale of demand in investments. Tanzania needs a financing stack that combines public investments in common infrastructure, long-term finance from development banks, blended finance to mobilize private capital, working capital, and supplier finance facilities for SMEs, and of course dedicated instruments for green and blue value chains. My fourth point is about inclusiveness. Industrialization cannot be confined to major cities. Processing, storage, cold chains, machinery services, packaging, and digital access— digital market access, sorry— must come move closer to where production areas are. This is essential to transform raw materials into certified branded higher value products. My final point relates to implementation and accountability because it's not enough to only design policies. Competitiveness at the end of the day in Tanzania depends not only on infrastructure but also on predictable regulation, effective institutions, efficiency efficient licensing and contract enforcement and strong policy coordination. So colleagues, the time to implement industrial policies is right. Our Industrial Development Flagship Report 2026 shows that we are entering a new era of industrial policy. You know, if we look out in the world, all countries are implementing industrial policy again, not only the major countries but also the smaller countries. And we just have to make sure that we also take developing countries along and that they have enough policy space in order to implement those policies. Before I finish, let me just also mention here that on 22nd June, so very recently, we signed our new 5-year program with Tanzania. We call it the Program for Country Partnerships to address many of the components that I mentioned today— industrial policies, value chains, how to move up in value chains, how to secure export promotion and investments, and so on and so forth. So by concluding, Excellencies, the opportunities before Tanzania and many other developing countries is not to choose between agriculture, the blue economy, and industry. It is to industrialize agriculture and the blue economy. It's to move from exporting raw materials and to move to producing higher-value goods, from fragmented producers to integrated value chains, and in that way to ensure the full implementation of SDG 9 in the country. So as UNIDO, we'll be happy to support you in this process, and I look forward to our discussion. Thank you very much.

Thank you.

I welcome Ms. Aissata Day, Deputy Regional Director for UNDP's Regional Bureau for Africa. Aissata, from UNDP's regional experience, what policy and institutional reforms have proven most effective in enabling countries to scale innovation ecosystems, strengthening productive capacities, and drive industrial inclusive industrial transformation across Africa. Over to you.

Honorable guests of honor, Dr. Tawzie Kida, I'm delighted to see you in New York. Welcome. Thank you for being here. Excellencies, distinguished delegates, colleagues, and friends, distinguished permanent representative, Representatives of the government of Norway, of Indonesia, our colleagues from UNIDO, Harald, and FAO, and our partners across the development financing community, ministers, distinguished delegates, colleagues, and partners, allow me to begin with a simple but important reality. In Africa, approximately Approximately 80% of employment is informal. This means that the informal economy is not the periphery of Africa's economies; it is their foundation. It is where millions of women, young people, farmers, traders, artisans, and entrepreneurs earn livelihoods. Create value and at the same time sustain their own communities. For this reason, Africa's industrialization, as said by my colleagues, transformation cannot bypass the informal economy. It must transform it. The question before us is how do we eliminate informality but how to increase productivity, improve resilience, expand opportunities, and create pathways towards greater formalization and economic inclusion. At UNDP, we believe that the transformation rests on 3 mutually reinforcing pillars. The first one is innovation and entrepreneurship. The second, an enabling environment. And the third one is financing that works for small and growing enterprises, to answer to your question. For the first one, which is innovation and entrepreneurship, we believe that Africa is home to the youngest population in the world and one of the fastest growing economies. An innovation ecosystem. Yet African enterprises, especially for the youngest, continue to face major constraints in accessing markets, technology, and investment capital, why the collaboration with UNCDF is key and we are happy to be with our colleagues as well. Industrialization transformation will therefore depend on our ability to support African innovators and entrepreneurs to move from ideas to enterprises and from enterprises to scale. This is the ambition behind UNDP's Timbuktu Initiative that you have heard of, which seeks to build a continent-wide innovation ecosystem which is capable of supporting thousands of startups and unlocking new opportunities for young employment, digital transformation, and economic diversification. Africa's young people are not waiting to participate in the future economy. They are already building it. And we are, through this initiative, also partnering across many universities in the continent through the Unipod that have been established. The second one is an enabling environment. Entrepreneurship alone is not enough. Business requires supportive policies, digital public infrastructure, and accessible— access to skill and stronger market system. This is where to grow and compete. The experience across many countries demonstrates that when government invest in digital systems, business registration, skills development, and market access, productivity rises and enterprises become more resilient and investable, especially for women and young people. This is particularly important for micro, small enterprise, and also medium enterprise, which account for overwhelming majority of businesses and jobs across the continent. Creating an enabling environment means therefore reducing barriers, increasing trust, and at the same time ensuring that formalization becomes an opportunity rather than an additional burden. The last one, which is financing for development, for which Access to finance remains one of the greatest obstacles facing African enterprises, particularly operating in the so-called missing middle between microfinance and commercial lending. Too many promising industries, businesses that failed not because of weak ideas, but because they cannot access patient capital, risk-sharing instruments, and early-stage investment. Public and concessional finance, therefore, have an essential role to play in de-risking investment, crowding its capital, and supporting enterprise with high growth potential. We thank the UNCTAD for all the support that is being provided in our partnership in many countries in this aspect. The objective is not to replace markets, but to make markets work better, and those who have historically been excluded from them. These 3 pillars are deeply interconnected. Innovation requires an enabling environment, An enabling environment requires investment and at the same time investment depends on innovative and productive enterprises capable in generating jobs and growth. At the centre of the transformation are Africa's women and young people. They are not beneficiaries of development; they are entrepreneurs innovators, employers, and drivers of structural transformation. Inclusive industrialization that leaves them behind will not be inclusive ultimately and will not succeed. None of this can be achieved by government alone, and this is why this partnership is essential. It requires partnership like what we are seeing today between government, development institutions, private sector, financial institutions, but also local communities. UNDP contributes to help bring those actors together by combining policy support, digital capital innovation, and sustainable financing solutions around nationally owned development priorities. This event reflects the kind of partnership that will be required to move from ambition to implementation. Allow me to conclude with a simple proposition, which is transforming Africa's informal economy is not about moving enterprises from one category to another. It is about unlocking productivity, expanding opportunities, and creating more resilience and inclusive economies. If Africa succeeds in transforming the informal economy, it will not only create jobs and livelihoods, it will also create the foundation of a new generation of inclusive industrial growth. UNDP is ready to work with the government of Tanzania and we also echo the congratulations expressed by our colleagues for your Vienna And we also stand ready to continue the partnership with the government of Norway and all other governments through the South-South cooperation as well, and with all to advance this shared agenda. I thank you for your attention and thank you again.

Thank you very much. To conclude our panel, and we have We have very few minutes remaining and we are supposed to leave the room by 2:30 sharp, and we still have 2 more people to speak. I'd like to kindly request that we stick to the time allocated. To conclude our panel, we turn to the last session on the financing dimension, the catalyst that enables transformation. I invite Ms. Kortar Zerol, Global Lead of Peace and Resilience Finance at UNCDF. How can catalytic finance, blended financing instruments, and digital financial inclusion be scaled to unlock investment for MSMEs and informal enterprises, strengthen their productivity, and support their integration into national and global value chains? The floor is yours.

Thank you, Zania. Thank you to all partners. Distinguished guests, colleagues, the question goes to the heart of inclusive industrial transformation. If we want agriculture and blue economy chains to become engines of jobs, income, national revenue, and export growth, we need to ensure that SMEs operating in these value chains can access finance. Tools and markets they need to grow. For UNCDF, the starting point is that SMEs and informal companies are not peripheral sectors. They are often the backbone of local economies. They produce, aggregate, process, transport, trade, and provide services across value chains. They also often— where women are provided to livelihood opportunities, young people provided opportunities where they can innovate. Both these SMEs are frequent— all of these are frequently excluded from formal finance. Many lack collateral, audited accounts, credit histories, formal contracts, or digital records. Some need working capital. Others need longer-term investments for storage, processing equipment, clean energy, quality standards, or market access. For local banks, they may appear too risky. For larger development finance institutions, the ticket size may be too small, too risky, or simply too unfamiliar. These are the financing gaps we often call the missing middle. This is where catalytic finance has a specific role. UNDP's catalytic financing model is about using these concessional loans and resources in a targeted way to address a specific market barrier. The purpose is not to subsidize the sector permanently. The purpose is to absorb early or specific risk, demonstrate viability, and help investors enter the market. This can take different forms. A guarantee can help a domestic bank lend to segments it has not financed before. A concessional loan can provide a repayment period that better matches the cash flow or the productive investment cycle. A reimbursable grant or performance-based payment can help test a business model, prepare a company for investment, de-risk them, or simply build a pipeline. Across its portfolio, UNCDF's model is to use CARE ODA to build markets that attract larger and more sustainable flows of finance, which every dollar invested generates $4 in total capital mobilized. A concrete example is the Rwanda Bridge Facility. These— the UNCDF and WFP supported access to affordable finance for youth and women-led agribusinesses. A $500,000 guarantee was fully utilized to unlock $1 million in loans to 92 agribusinesses. The facility responded to a very practical barrier: lack of collateral, high-risk perception, limited market access, and post-harvest losses. The important lesson is that the guarantee did more than unlock individual loans. It helped local finance institutions to build the trust, confidence in a segment that has been seen too risky. That is the market-building approach. Use a targeted instrument to create a track record, generate data, and enable domestic finance institutions to continue financing similar companies over time. The second part of the question is digital financing. This is critical because many informal companies are not necessarily unproductive. They simply are invisible. They may transact in cash, lack records, or operate outside the systems that banks, buyers, or investors use to assess risks. Digital tools can change this. Digital payment, mobile wallet, e-commerce platform, transaction data, and alternative credit scoring can help small companies build financial records, financial histories. They can reduce the cost of serving SMEs. They can also connect companies to buyers, suppliers, logistics providers, and financial institutions. In Tanzania, UNCDF worked together with UNDP to provide a stronger example, to provide 22 startups and unlock more than $13 million in investment, facilitated over 100 partnerships with financial institutions. This shows that digital financial inclusion is not only about accounts, it's about productivity and market access, When companies can receive digital platform, manage cash payments, build transaction records, and connect to digital platforms, they become more visible, more reliable, and more bankable. This is particularly important in the agriculture system. To integrate international, regional, and global markets, companies need more than capital. They need to meet quality standards, demonstrate reliability, manage environmental and social risk, and participate in structured supply chains. Catalytic finance can help them make that transition by combining financing with technical assistance, investment readiness support, safeguard partnership, and buyers and financial institutions. To scale this agenda, I would like to highlight 4 priorities. First, we need to use concessional capital where it is most additional. It's in the first risk and last mile segments where commercial capital is not yet flowing. Second, we need to move from isolated transactions to portfolios and market systems. Investors need visible pipelines of companies with comparable information, credible safeguards, and clear financing needs. Third, we need to involve domestic financial institutions early. Sustainable scale will come when local banks, MFIs, national development banks, and local investments have the confidence and the tool to finance SMEs directly. Lastly, we need to treat digital financial inclusion as part of industrial transformation. Digital tools can help informal companies build records, access finance, connect to markets, and move towards formal growth. If we get the sequencing right, catalytic finance, blended finance, and digital financial inclusion can help SMEs and informal companies become engines of inclusive industrial transformation, strengthening productivity, expanding market access, and integrating local companies' international, regional, and global value chains. Thank you.

Thank you very much. That marks the end of our panel session. We were supposed to have a space for 3 questions, but because of time— sorry, because of time, we'll only have one slot for contribution or Q&A. I would like to check if there's— okay, please, you have 1 minute or 2.

Thank you, Chair. Excellencies, distinguished delegates, when we speak about agriculture and blue economy, we often think of natural resources. I would suggest we also think about industrial opportunity. The future of food systems and the blue economy depends not only on what we harvest, but on how we transform those resources into resilient, high-value industries through innovation, advanced manufacturing, and strategic partnerships. For the UAE, industrialization is the bridge between natural resources and sustainable economic value. Through the National Strategy for Industry and Advanced Technology, we are advancing our priority sectors to strengthen food security, diversify our economy, and build resilient industrial ecosystems. Beyond being a global maritime hub, the UAE has developed one of the region's leading shipbuilding and maritime manufacturing industries. In parallel, we continue to unlock new opportunities in aquaculture, marine biotechnology, and algae-based industries, creating economic value while promoting the sustainable use of marine resources. Through our National In-Country Value Program, companies are strengthening local supply chains, supporting domestic manufacturers, and creating long-term industrial capabilities. Through MakeIT in the Emirates, our flagship industrial platform, manufacturers, startups, investors, academia, and policymakers come together to forge partnerships, showcase innovation, and unlock investment opportunities. I warmly invite you to join us at MakeIT in the Emirates Forum 2027 to explore partnerships that are translating into resilient industries stronger value chains, and sustainable economic growth. Ultimately, inclusive industrial transformation is not measured by the volume of what we produce, but by the value we create and the resilience we build. Resilient value chains create resilient economies and sustainable prosperity. By investing, by investing in innovation, advanced manufacturing, and strategic partnerships, we can accelerate progress towards SDGs 8, 9, 12, and 14, while building economies that are more competitive, more inclusive, and are better prepared for the future.

Thank you. Thank you very much, Ms. Fatma, from Ministry of Industry and Advanced Technology, United Arab Emirates. Another round of applause because we are concluding for her. Now, we are moving to the last session, the closing part. And it is my honor to invite His Excellency Ambassador Togolani Mavura, Permanent Representative of the United Republic of Tanzania to the United Nations, to deliver the closing remarks. Ambassador, welcome.

Thank you so much, Naseer. Excellencies, distinguished delegates, members of parliament, ladies and gentlemen, mine is very simple and is simply to wind up. On behalf of the United Republic of Tanzania, I express our sincere appreciation for your active participation, thoughtful contribution, and shared commitment in this important conversation. Today's discussions have reaffirmed a central truth: Africa's industrial and inclusive economic transformation will be achieved when we invest boldly, innovate deliberately, and build sustainable value chains that empower our people, transform agriculture and blue economy from subsistence economy— that is currently how it is perceived— to more of a safety net that will guarantee springboard and, most importantly, wealth creation platforms. We have heard compelling insights on how financial models can unlock productivity, how innovation can accelerate competitiveness, and how inclusive approaches can ensure that smallholders, farmers, women, youth, and informal sector actors are not left behind. These perspectives strengthen our collective resolve to build resilient systems capable of withstanding global shocks while creating dignified jobs and expanding opportunities across our continent. Tanzania remains fully committed to advance these priorities. We will continue strengthening policies that promote industrial growth, expanding digital and technological adoption, and deepening partnerships that support sustainable use of our land and ocean resources. But we cannot do this alone. The collaboration of member states, UN agencies— today we have UNCDF, UNIDO, UNDP, and FAO— our development partners, and the private sector is essential, and today's dialogue has shown that this partnership is strong and growing. As we conclude, let us carry forward the momentum, generated here. Let us translate ideas into action, commitment into investment, and shared aspirations into measurable progress for our communities. Last but not least, I take this opportunity to welcome you all on the 14th of July, where we'll present our Voluntary National Report. The United Republic of Tanzania thanks you once again for your engagement and looks forward to continued collaboration towards a more industrialized inclusive and sustainable Africa. We believe it is possible, it is doable, and it's about time. Thank you.

And for the second time, a round of applause for all of us for being here attentively. So thank you for joining us for this high-level side event for the people who are joining us through UN Web TV and all participants in this room. We wish you a productive continuation of High-Level Political Forum 2026, and this marks the end of our side event. Thank you so much for attending. We will have a photo session for all panelists to stand behind the high table just for a group picture, a quick one, and with our member of parliament as well. We can take just one minute before we leave the room. Thank you very much.