The United Nations Capital Development Fund (UNCDF) today welcomes the formal recognition of its catalytic role in development finance within the outcome document of the Fourth International Conference on Financing for Development (FfD4), formally adopted by Member States at the opening of the Conference in Sevilla.

The international community has formally acknowledged the importance of UNCDF’s capital mandate in the official Financing for Development Outcome Document. Paragraph 33(m) of the Compromiso de Sevilla “encourages the United Nations Capital Development Fund to continue supporting Least Developed Countries as an early-stage provider of catalytic concessional first-loss capital to de-risk investments and change the risk profile of early-stage markets in countries in special situations, creating the conditions for scaled-up financing through development finance institutions and multilateral development banks.”

“This is an historic moment for, first and foremost, the countries we serve: Least Developed Countries and countries in special situations, such as Small Island Developing States and other underserved markets,” said Pradeep Kurukulasuriya, Executive Secretary of UNCDF. “Recognition of UNCDF’s unique capital mandate is not just a vote of confidence in our work—it’s an invitation to do more. As official development assistance shrinks and the financing gap widens, the world needs bold, catalytic approaches to deliver impact at scale. That’s what UNCDF is built for, we stand ready to answer this call”.

At a press conference alongside Hon. Professor Mthuli Ncube, Minister of Finance, Economic Development and Investment Promotion of Zimbabwe, and Ali Shareef, Special Envoy for Climate Change in the President’s Office of the Maldives, both leaders welcomed the momentum created by the Outcome Document.

“Through the Zimbabwe Renewable Energy Fund, UNCDF’s first-loss capital is crowding in private investors to bring renewable to our schools, farms and communities, driving job creation and creating wealth,” said Minister Ncube, Minister of Finance, Economic Development and Investment Promotion of Zimbabwe. “Recognition in the outcome document validates this model for scaling across Africa.”

Nearly 60 years after UNCDF's establishment through the 1966 General Assembly resolution, the Compromiso de Sevilla Outcome Document reaffirms the organization's foundational mission as a capital provider, with priority focus on the Least Developed Countries.

UNCDF remains committed to working alongside UN entities, national governments, and development finance partners to translate this recognition into action and results—creating investable markets where others see risk, as a pathway for scale by development finance institutions and multilateral development banks.

United Nations Capital Development Fund (UNCDF)

United Nations Capital Development Fund (UNCDF) mobilizes and catalyses an increase in capital flows for impactful investments in high-risk markets, especially in Least Developed Countries, Small Island Developing States and countries in special situations. By crowding in capital through the deployment of risk-absorbing financial instruments, mechanisms and structuring advisory, UNCDF contributes to job creation and sustained economic growth in more than 70 countries.

In partnership with UN entities and development partners, UNCDF operates with speed and agility to deliver scalable, blended finance solutions to drive systemic change and pave the way for commercial finance and scale up by development finance institutions and multilateral development banks.

Learn more at uncdf.org or follow @UNCDF.