On the margins of the Commonwealth Heads of Government Meeting (CHOGM) in Samoa, Commonwealth leaders gathered for a side event to unveil the Commonwealth Investment Action Plan. The plan aims to boost trade and investment across Commonwealth member states while enhancing the economic resilience of small and vulnerable nations.
Hosted by Rt. Hon. David Lammy, UK Foreign Secretary, the event was attended by key leaders, including HE Sitiveni Ligamamada Rabuka, Prime Minister of Fiji, and foreign ministers from Australia, Jamaica, Rwanda, Singapore, and Zambia.
Commonwealth Secretary-General holding the 2024 Commonwealth Trade Review
In her opening remarks, Commonwealth Secretary-General, Rt. Hon. Patricia Scotland KC emphasised the importance of Commonwealth collaboration in shaping the future of investment:
“The Commonwealth Investment Action Plan is a fulfilment of the mandate given by our Trade Ministers to mobilise investment where it is most urgently needed. We are grateful to the United Kingdom and Malaysia for co-chairing this effort, as we seek to ensure all member countries, particularly the smallest and most vulnerable, attract the necessary finance to transform their economies and build resilience to future shocks.”
The Commonwealth Investment Action Plan builds on discussions from the 2023 Commonwealth Trade Ministers Meeting. It addresses key challenges many Commonwealth countries face, particularly developing and small states, in securing the necessary investment to meet the Sustainable Development Goals (SDGs) by 2030. This is especially urgent given the widening infrastructure gaps, climate challenges, and rising inequality.
The Secretary-General also highlighted findings from the 2024 Commonwealth Trade Review, which demonstrated significant progress in intra-Commonwealth trade and investment post-COVID-19, with trade between Commonwealth countries reaching US$854 billion in 2022.
Strategic priorities
The Action Plan outlines three core objectives:
Enhancing Technical Support: Building the capacity of Commonwealth members to develop investment-ready projects.
Improving Knowledge Exchange: Facilitating collaboration and sharing best practices between member states.
Engaging the Private Sector: Leveraging the Commonwealth’s convening power to bring in private sector stakeholders to drive investment.
The Commonwealth Advantage
The Commonwealth Advantage—reflected in an average of 21% lower trade costs between Commonwealth countries, due to shared language, legal frameworks, and strong diaspora networks—has long been a cornerstone of robust trade and investment among member countries. Foreign Direct Investment (FDI) flows within the Commonwealth have grown significantly, with FDI stock nearly doubling to US$1.7 trillion in 2022. However, much of this investment remains concentrated in developed nations, leaving smaller and more vulnerable members in need of increased financial support.
Rt. Hon. David Lammy, UK Foreign Secretary
Rt. Hon. David Lammy reiterated the critical role of Commonwealth cooperation, noting that while the Commonwealth’s intra-trade and FDI figures are impressive, more must be done to ensure equitable growth. The plan aims to mobilise investments, particularly in sustainable infrastructure and climate resilience, to address the estimated US$4 trillion investment gap in SDG sectors.
Looking forward
The Commonwealth Investment Action Plan will complement existing Commonwealth initiatives, such as the Commonwealth Blue Charter, the Living Lands Charter, and the Climate Finance Access Hub. A new Commonwealth Investment Network, funded by the UK Government, will be launched to help smaller states attract investments and develop sustainable projects.
Progress on the plan will be monitored through quarterly updates, with a mid-term review scheduled for Q4 2025 and a full report to be presented at CHOGM 2026.