Established in 2016 with an initial USD 2.5 million contribution from the Swedish International Development Cooperation Agency (Sida), the Last Mile Finance Trust Fund was created to give UNCDF a flexible source of financing for work in last-mile markets.
By pooling lightly earmarked donor contributions, UNCDF can use resources across thematic priorities to test financing approaches, absorb early risk and prepare opportunities for additional public and private investment.
By 2025, ten donors had supported the Fund, enabling UNCDF and its partners to work across different stages of the financing pathway, from feasibility and transaction preparation to guarantees, catalytic grants and investment advisory support.
With resources from Sweden, UNCDF also commissioned an independent formative evaluation in 2025 to examine the Fund's experience since its establishment and inform UNCDF's approach to catalytic finance under the 2026–2029 Strategic Framework.
This report highlights selected results and financing approaches from 2025 and shows how flexible donor capital has helped UNCDF address financing gaps, test solutions and create pathways for additional investment in markets where conventional finance remains limited.
