A defining moment to reshape global finance for sustainable development

The Fourth International Conference on Financing for Development (FfD4), held in Seville, Spain, is a once-in-a-decade moment to shape a renewed global financing framework.

For the UN Capital Development Fund (UNCDF), FfD4 is a pivotal platform to reaffirm its unique role as a provider of catalytic concessional capital for Least Developed Countries (LDCs), Small Island Developing States (SIDS), and countries in special situations.

Catalysing investment where it matters most

Together with our partners, including Convergence Blended Finance and others, UNCDF is advancing blended finance solutions that crowd in private capital by changing the risk profile of early-stage markets.

As the financing arm of the UN system, UNCDF bridges the gap between ambition and action. By supporting upstream project design and downstream capital mobilization, UNCDF unlocks investment pipelines which fuel job creation, growth and prosperity.

UNCDF’s catalytic role formally recognized in the FfD4 Outcome Document

We are pleased to announce that the role of the UN Capital Development Fund has been formally recognized in the outcome document of the Fourth International Conference on Financing for Development (FfD4), the Compromiso de Sevilla, which was approved by Member States and transmitted for adoption by the Conference.

The document explicitly acknowledges UNCDF’s unique role:

“We encourage the United Nations Capital Development Fund to support LDCs as an early-stage provider of catalytic concessional first-loss capital to de-risk investments and change the risk profile of early-stage markets in countries in special situations, creating the conditions for subsequent crowding in of private sector with scaled up financing through DFIs and MDBs.”

This recognition marks a major milestone in UNCDF’s nearly 60-year journey to build functioning financial markets in the world’s most underserved contexts. It also reflects the growing demand for our capital mandate, which allows us to deploy risk-absorbing capital in ways no other UN entity can.

UNCDF stands ready to scale up its support to Least Developed Countries, Small Island Developing States, and countries in special situations—unlocking private capital, strengthening local markets, and delivering on the promise of sustainable development finance.

Supporting three important initiatives under the Sevilla Platform for Action

CASE STUDIES