10 December 2004: The French Ministry of Foreign Affairs and the United Nations Capital Development Fund have signed a Memorandum of Understanding for a new programme supporting decentralization and local development. The € 3 million (US$4 million) in financing, part of the French 'Fonds de solidarité prioritaire' (Priority solidarity fund), will allow UNCDF to define and implement new projects in Mauritania and Niger:

1. In Mauritania, the Support to Local Governments Project in Assaba, will benefit a population of about 180,000 people of the Assaba province (Wilaya), one of the poorest provinces in the country, in 20 rural 'communes' and 1 urban municipality (Kiffa). The project will focus on building the capacities of all local stakeholders and on improving local social services, socio-economic infrastructures and the management of natural resources.
2. In Niger, the Support to the Diffa Urban Municipality Project will benefit a population of about 35,000 people in the urban municipality of Diffa (Eastern Niger). The project will build the capacity of local stakeholders and support local economic development initiatives.

The two projects will strengthen sustainable local development in both countries, by giving democratically elected authorities a key role in promoting a participatory local development. A number of initiatives aimed at reducing local poverty and improving local livelihoods will be made possible by a local development fund allocated to local authorities and for use by them according the principles of good governance.

UNCDF contributes to the achievement of the Millennium Development Goals in Least Developed Countries through a variety of innovative approaches in both local development and microfinance. More information can be found on its website: www.uncdf.org.