The Case for a Global Tech Fund for Least Developed Countries
As the world races towards 2030, the progress of the Sustainable Development Goals (SDGs) is alarmingly off course. With less than a fifth of the goals on track, Least Developed Countries (LDCs) face growing economic and technological disparities that hinder their ability to catch up with global advancements.
The upcoming 4th International Conference on Financing for Development (FfD4) in Seville, Spain, from 30 June to 3 July 2025, represents a unique opportunity to mobilise action and bridge this divide.
One of the most promising solutions is a dedicated global fund for Science, Technology, and Innovation (STI) tailored to the needs of LDCs. A well-structured funding mechanism could catalyse long-term transformation by unlocking access to cutting-edge technologies, fostering economic resilience, and integrating LDCs into global innovation ecosystems.
A $4.2 Trillion Challenge
The financing shortfall for achieving the SDGs has skyrocketed to $4.2 trillion annually, a stark contrast to the financial commitments made in past global agreements. This deficit is particularly damaging for LDCs, which struggle with weak infrastructure, limited institutional capacity, and outdated education systems, all of which stifle their ability to leverage technology for development.
The FfD4 summit aims to tackle these economic hurdles by bringing together international donors, policymakers, and industry leaders to craft innovative funding solutions that prioritise LDCs’ technological transformation.
This requires a multi-tiered financing approach, combining:
- Public sector investments from international development banks and government grants.
- Private sector partnerships with venture capital firms, technology corporations, and impact investors.
- Multilateral funding mechanisms, such as joint initiatives between the UN, World Bank, and regional financial institutions.
Harnessing Technological Advancements for LDCs
The past decade has witnessed rapid progress in key technological fields, including:
- Artificial Intelligence (AI) and Machine Learning – Transforming industries from agriculture to healthcare by enabling predictive analytics and automation.
- Green Technologies – Essential for sustainable energy solutions, smart grids, and climate resilience.
- Satellite Connectivity and IoT – Bridging the digital divide by providing remote regions with internet access and smart monitoring systems.
- Biotechnology and Precision Agriculture – Enhancing food security through genetically optimised crops and soil analytics.
While these advancements have created unprecedented wealth, they remain concentrated in developed economies. LDCs require strategic investments to leverage these technologies and integrate them into their national development strategies.
Building Institutional Capacity
For LDCs to fully benefit from STI investments, their institutions must have the structural resilience to implement and sustain technology-driven projects. This requires:
- Strengthening Governance and Regulatory Frameworks
- Developing national STI policies aligned with global best practices.
- Establishing intellectual property (IP) protections to encourage innovation.
- Creating data governance frameworks for responsible AI deployment and cybersecurity.
- Enhancing Research and Development (R&D) Infrastructure
- Establishing technology incubation hubs and centres of excellence.
- Encouraging cross-border research collaborations to pool expertise and resources.
- Supporting open-access scientific repositories for knowledge sharing.
- Improving Access to Capital for Startups and SMEs
- Developing impact investment funds to support LDC-based tech startups.
- Providing low-interest credit lines for enterprises adopting STI solutions.
- Encouraging public-private partnerships to reduce financial risks in innovation-driven sectors.
Bridging the Skills Gap
With nearly half of the LDC population lacking access to electricity and only one-third connected to the internet, education remains a significant barrier to technological progress.
Addressing this requires a two-pronged strategy:
- Revolutionising STEM Education
- Updating national curricula to prioritise STEM (Science, Technology, Engineering, and Mathematics) education.
- Investing in digital learning platforms to provide remote access to technical training.
- Strengthening partnerships between universities, research institutes, and the private sector to align education with industry needs.
- Expanding Vocational and Digital Skills Training
- Establishing Technical and Vocational Education and Training (TVET) programmes tailored to local labour markets.
- Launching AI-driven skill assessment platforms to identify talent gaps and offer personalised learning paths.
- Encouraging gender-inclusive STEM initiatives to ensure women’s participation in the tech economy.
Creating an Enabling Environment for STI in LDCs
- Regulatory Reforms to Encourage STI Investment
- Reducing trade barriers for technological imports.
- Implementing R&D tax incentives for local enterprises.
- Facilitating technology transfer agreements between global innovators and LDC governments.
- Strengthening Digital Infrastructure
- Expanding 5G and broadband networks in underserved regions.
- Deploying smart grid technology to stabilise electricity supply.
- Investing in cloud computing and blockchain solutions for secure data management.
- Public-Private Collaboration to Drive STI Adoption
- Establishing multi-stakeholder tech consortia.
- Supporting government-backed startup accelerators.
- Integrating corporate social responsibility (CSR) initiatives into STI funding strategies.
The Business Case for a Global STI Fund
Investing in LDCs’ technological future is not just philanthropy—it’s a strategic economic decision.
- Expanding Emerging Markets: LDCs represent over 1 billion people, a largely untapped market for global industries.
- Driving Global Innovation: Diverse perspectives from LDCs can lead to ground-breaking technological solutions.
- Ensuring Economic Stability: Addressing inequality fosters political stability and reduces migration pressures.
Successful precedents include China’s Belt and Road Initiative (BRI), which incorporates STI infrastructure investments, and the UN Technology Bank for LDCs, which has begun laying the foundation for STI-led development. However, these initiatives require significant scale-up to achieve systemic impact.
Seizing the Opportunity at FfD4
The 4th International Conference on Financing for Development is a rare chance to:
- Secure funding commitments from major economies and development banks.
- Establish a global governance framework for STI financing.
- Launch regional STI hubs in Africa, Asia, and Latin America to facilitate technology dissemination.
With coordinated global action, an STI-driven transformation of LDCs is within reach.
A Forward-Thinking Investment in Global Stability
A well-funded global STI initiative for LDCs is not only a moral necessity but also a smart investment in the world’s future. Bridging the innovation divide will unlock new economic opportunities, ensure sustainable growth, and create a more resilient global economy.
With political will and financial commitment, the vision of an inclusive, tech-driven development agenda can become a reality.
Original article by Deodat Maharaj is the Managing Direct0r of the United Nations Technology Bank for the Least Developed Countries.
