In this report, we look back on the 2024 impact of the UNCDF-led LMF-TF. The Trust Fund has been critical to unlocking much-needed investment in the world’s most underserved markets, supporting countries, communities and businesses—as the name suggests—at the last mile.

Launched in 2016 with the generous support of the Swedish International Development Cooperation Agency (Sida), and its initial contribution of $2.5 million, the LMF-TF was designed as a flexible funding mechanism that pools together lightly earmarked resources from various donors towards thematic priorities.

The Trust Fund was also intended to serve as a platform to test new models, innovate solutions, de-risk investments, and most importantly, to mobilize and catalyse financing to help achieve transformational impact across LDCs.

Today, the LMF-TF pools together flexible funding and the generous support of 10 donors: Sida, the Government of Andorra, the Norwegian Agency for Development Cooperation (NORAD), the Swiss Agency for Development and Cooperation (SDC), the German Federal Foreign Office, the Kingdom of the Netherlands, the Korea International Cooperation Agency (KOICA), the Nederlandse Financiering- Maatschppij Voor Ontwikkelingslanden N.V. (FMO), the Principality of Liechtenstein, and Luxembourg.

As of 31 December 2024, LMF-TF has received $100 million, enabling crucial support to countries often beyond the reach of investors. At a time of global uncertainty and decreasing funding streams, the LMF-TF stands out as a testament to UNCDF’s unique ability to operate in countries where traditional financing mechanisms have failed, using a flexible funding source to effectively de-risk investments in these markets, thus helping mobilize and catalyse an increase in capital flows.

UNCDF continues to scale its role as a catalytic fund, strengthening financial systems and mobilizing private investment to amplify the development impact of our partners and the UN family.