UNCDF in Colombia

Connecting the cocoa value chain with sustainable market and financing solutions in Catatumbo

Since 2025, UNCDF has been supporting the transition from illicit coca cultivation to sustainable cocoa production in Catatumbo, one of Colombia’s regions most affected by conflict and illicit economies. Implemented in partnership with the Government of Colombia (Dirección de Sustitución de Cultivos de Uso Ilícito, DSCI) and with funding from the Colombia Peace Multi-Partner Trust Fund (MPTF), the project strengthens cocoa value chains by improving access to affordable finance for producer cooperatives and associations in Catatumbo.

Through catalytic financial instruments, including guarantees and risk-sharing mechanisms, UNCDF helps local financial institutions expand lending to cocoa cooperatives, enabling them to scale operations, improve logistics, and provide better services to producers. The initiative particularly supports women, youth, and rural communities, while contributing to economic inclusion, territorial resilience, and peacebuilding.

Building on this work, Building on this work, UNCDF has launched an Expression of Interest (EOI) to identify Colombian financial institutions interested in expanding access to finance for cocoa producers, associations and cooperatives in Tibú, El Tarra and Sardinata. Through the programme, selected institutions may access up to $668,000 in concessional funding lines and partial credit guarantees to reduce lending risks, lower financing costs and strengthen investment across the cocoa value chain. ">UNCDF has launched an Expression of Interest (EOI) to identify Colombian financial institutions interested in expanding access to finance for cocoa producers, associations and cooperatives in Tibú, El Tarra and Sardinata. Through the programme, selected institutions may access up to $668,000 in concessional funding lines and partial credit guarantees to reduce lending risks, lower financing costs and strengthen investment across the cocoa value chain.

Hogares de paz: expanding access to housing finance for peace

UNCDF, in partnership with Colombia’s Agency for Reincorporation and Normalization (ARN), is developing an innovative housing finance mechanism to improve access to dignified housing for people in the process of reintegration (PER), in alignment with the 2016 Peace Agreement. The initiative, “Hogares de Paz”, aims to address structural barriers that prevent former FARC combatants from accessing formal housing credit, including lack of financial history, unstable incomes, and limited downpayment capacity.

With funding from Colombia Peace Multi-Partner Trust Fund (MPTF), the project will support the design and deployment of inclusive financial instruments, including guarantees or concessional loans, to reduce perceived lending risks for financial institutions and expand access to housing loans for PERs. The initiative prioritizes women heads of household and seeks to strengthen economic autonomy, territorial stability, and long-term peacebuilding. The project aims to mobilize up to $ 9.75 million in housing loans and support at least 300 families across Colombia.