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Financing for Small Island Developing States (SIDS) remains below the levels needed to advance the Sustainable Development Goals.  Concessional flows (official development assistance)  directed to SIDS in 2019 was $5,742 million (mn)(OECD, 2021). SIDS receive very little Official Development Assistance (ODA) as a share  of total ODA. The Pacific receives most aid, and some countries in the Caribbean, particularly Haiti, are heavily aid-dependent. In addition, several SIDS who have graduated to middle-income status have lost access to concessional finance from Multilateral Development Banks (MDBs) due to the eligibility requirements for access to concessional resources (determined by per capita income classifications). 

This report examines the financing needs of SIDS to achieve the 2030 Agenda and the SAMOA Pathway, recognizing the additional challenges brought on by the COVID-19 pandemic. The report provides an overview of development financing in SIDS by examining the latest available data on external financial flows to SIDS, including FDI, remittances, official transfers, climate aid, and other capital flows. It also investigates the impact of COVID-19 on such financial assistance and discusses the islands’ ongoing debt sustainability issues in light of the pandemic.

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