Press Release

Switzerland backs UN Capital Development Fund with new funding of US$ 2.2 million

2 June 2025

The Swiss Agency for Development and Cooperation (SDC) has reaffirmed its ongoing partnership with the UN Capital Development Fund (UNCDF) through a new core contribution of $2.2 million (CHF 2 million), bringing their total core contribution since 2022 to $13.4 million (CHF 11 million).

The funds refresh long-standing Swiss support for UNCDF in full alignment with Switzerland’s international cooperation model which seeks to strategically deploy catalytic and concessional capital to foster sustainable growth and long-term stability for the most vulnerable, especially in Least Development Countries (LDCs).

It reinforces UNCDF’s renewed ability to deploy catalytic financial instruments such as grant-funded guarantees, concessional loans, and performance-based payments, to unlock domestic capital and attract private investment at the last mile.

This support also comes at a crucial moment as UNCDF prepares for the launch of its new Strategic Framework for 2026-2029, which aims to scale development finance impact at a time of increasing global needs.

“We are grateful for Switzerland’s leadership and commitment to advancing high-impact development finance,” welcomed UNCDF Executive Secretary Pradeep Kurukulasuriya, adding: “As a key supporter of flexible funding, Switzerland enables UNCDF to deliver critical support to markets that have not been able to benefit from traditional finance, allowing us to scale innovative models that help develop strong financial ecosystems.”

Switzerland's development finance system brings together the expertise of SDC, the State Secretariat for Economic Affairs, and the Swiss Investment Fund for Emerging Markets, forming a robust institutional framework to address both immediate humanitarian needs and longer-term development challenges.

“At a time when financing for development is critical, we need to strengthen partnerships in support of multilateralism, to ensure we don’t leave anyone behind. Switzerland believes in UNCDF’s unique role and scale–up potential in deploying blended finance and, most importantly, their ability to derisk markets and crowd-in finance for developing countries,” said Nicole Ruder, Ambassador, Vice Director, and Head of the Multilateral and NGO Division at SDC.

Switzerland’s approach to development is anchored in its International Cooperation Strategy 2025-2028, with its four thematic priorities: saving lives and guaranteeing access to high-quality basic services; contributing to sustainable economic development and job creation; guaranteeing environmental and climate-friendly development; promoting peace and strengthening democracy and rule of law.

This renewed collaboration underlines Switzerland and UNCDF’s alignment with impact-driven financing in last mile contexts, particularly in areas such as financing for small- and medium-sized enterprises, peace and security, disaster risk reduction, and clean energy transitions.

We thank the Government of Switzerland for its enduring commitment to create meaningful, scalable impact in the most underserved contexts.