UNCDF Strategic Framework 2026-2029
The United Nations Capital Development Fund Strategic Framework 2026–2029 is the organization’s core policy, investment, and operational framework. It defines why UNCDF exists, where it intervenes, and how it deploys catalytic finance in the world’s most capital constrained environments.
Adopted by the Executive Board and reaffirmed by Member States in the Compromiso de Sevilla at the Fourth International Conference on Financing for Development, the Framework positions UNCDF as an early stage provider of catalytic concessional capital in Least Developed Countries, Small Island Developing States and fragile settings.
UNCDF operates where risks are highest and markets are incomplete. Through performance based, reimbursable and investment grants, concessional loans, risk absorbing guarantees, and structuring and advisory services, UNCDF changes risk profiles and creates the conditions for larger flows from domestic finance, development finance institutions, multilateral development banks and private investors.
An integrated capability approach
UNCDF delivers its mandate through three interconnected areas — micro, small and medium enterprises finance, subnational finance, and digital finance — implemented through two reinforcing approaches: market systems development and financial sector deepening.
Market systems development strengthens policies, institutions and ecosystems so finance can flow. Financial sector deepening deploys catalytic concessional capital and risk sharing instruments to absorb early risk, demonstrate viability, and crowd in domestic and international investment. Together, these approaches ensure capital is anchored in functioning markets that can sustain and scale.
MSME finance strengthens the investability of enterprises, particularly those led by women and youth, expanding access to lending and investment beyond microfinance and outside traditional investor appetite.
Subnational finance unlocks capital for local governments, cities, utilities and public development banks, strengthening enabling frameworks and deploying derisking instruments to improve the risk return profile of local infrastructure and services.
Digital finance underpins both by lowering costs, improving transparency, advancing digital public infrastructure, and expanding access to inclusive financial systems.
A year of consultations
In preparation for the Strategic Framework 2026-2029, UNCDF underwent an inclusive consultation process to integrate its partner’s viewpoints and development priorities. This process was launched by the UNCDF Managing Director in November 2024 and will continue through the fall of 2025.
November 2024
February 2025
April 2025
April 2025
May 2025
June 2025
June 2025
June 2025
July 2025
Sept-Oct 2025
September 2025
February 2026
September 2025
Launch of the Consultation Process with Permanent Missions at UN Headquarters
UNCDF’s Managing Director and Executive Secretary engaged Permanent Missions on UNCDF’s role in mobilizing capital and de-risking investments in high-risk markets. Participants raised their national priorities, including financing for climate adaptation and resilience, food security, and energy.
Consultations at the Finance in Common Summit
At the Finance in Common Summit (FICS), UNCDF engaged with Public Development Banks, Multilateral Development Banks (MDBs), asset managers and development partners on sustainable infrastructure financing, investment in Africa, and reforms to global financial systems.
Consultation at the 81st Session of UNESCAP
With support of the Economic and Social Commission of Asia and the Pacific, UNCDF gathered Member State representatives to discuss how UNCDF could contribute to their development priorities. In cooperation with Convergence, UNCDF also offered an overview of innovative development finance solutions.
Consultation at the 2025 Conference of the Parties to the BRS COP
The consultation engaged Ministers and senior officials from the agriculture, energy and environmental sectors who expressed interest in partnering with UNCDF on agriculture and climate finance.
Consultations at the ESCAP Second Committee on Trade, Business and Development
Member State representatives shared their thoughts on the necessity of accompanying the deployment of financial instruments with technical advisory in low-income countries, prioritizing support of MSMEs, and developing markets to unlock follow-on investment, fostering sustainable finance.
Consultation with Permanent Missions at UN Headquarters
Participants of the Permanent Missions welcomed UNCDF’s focus on financial derisking, its role in catalyzing domestic capital, and operational agility. They also highlighted the need to retain a demand-driven value proposition, deepen engagement at the country level, and strengthen visibility.
Consultations at the Asian Infrastructure Investment Bank (AIIB) Annual Meeting
UNCDF conducted meetings with country delegations, MDBs and IFIs to surface country-specific project needs, opportunities to provide concessional capital or guarantees to unlock MDB lending, and entry points for deeper programmatic collaboration or co-creation of financial instruments.
Consultations at the London Climate Week in partnership with Lloyd’s and Aon
Lloyd’s roundtable on “Global Disaster Resilience Vehicle: providing innovative risk financing to climate-vulnerable countries” at the margins of the London Climate Week led to fruitful engagements with partners from the public and private sector that validated UNCDF’s unique value proposition.
Consultations at the 4th International Conference on Financing for Development
Key insights from Member State delegations, UN entities, DFIs, MDBs and private investment institutions included prioritizing UNCDF’s focus on LDCs, landlocked, and fragile states, ensuring MSME support, and deepening partnerships with the private sector to leverage additional finance.
Draft Strategic Framework document circulated for feedback
UNCDF shares the draft Strategic Framework with Member States and other partners for comments.
Consultation with Permanent Missions at UN Headquarters
UNCDF presents and discusses with Member States the revised draft Strategic Framework. It is an opportunity for Permanent Missions at UN Headquarters to provide additional recommendations and feedback before the official submission in February 2026.
Executive Board First Regular Session
The Executive Board takes note of the UNCDF Strategic Framework for the period 2026-2029.