Derisking investment in frontier markets

Established by the United Nations General Assembly in 1966, the United Nations Capital Development Fund (UNCDF) was created with a singular purpose - to advance development where it is most needed - in the world’s most underserved markets.

As a UN entity with a capital mandate, UNCDF occupies a unique position in the development finance ecosystem. We are non-credit rated by design, enabling us to operate in high-risk environments that others avoid. This gives us the flexibility to absorb more risk than multilateral development banks (MDBs), while serving as an off-balance sheet derisking partner for governments and major development finance institutions (DFIs).

We work where traditional finance does not flow: in Least Developed Countries, Small Island Developing States, and fragile contexts, where barriers to both public and private investment are highest, and the need for finance is most urgent.

UNCDF deploys a suite of catalytic instruments, including grant-funded guarantees, concessional loans, and performance-based payments, to unlock domestic capital and attract private investment. But we go beyond transactions. We catalyse local market development, strengthen public financial management systems, and build the financial ecosystems that enable long-term, sustainable investment aligned with the Sustainable Development Goals.

In doing so, we amplify the impact of the United Nations System and our multilateral partners, not by duplicating their work, but by laying the groundwork for others to scale.