The UN Capital Development Fund Deputy Executive Secretary Xavier Michon and Global Alliance of SMEs (GASME) Secretary-general Frank Cao, today signed a strategic partnership agreement, which demonstrates their joint commitment to cooperate in promoting greater access to finance for SMEs in the LDCs, and identify potential positive investment opportunities in these countries for the investment community.

The agreement includes three key areas of cooperation:

1. Seeking and providing opportunities for innovative financing for SMEs in LDCs
2. Facilitate liaison with public institutions and private actors to foster partnerships for growth and development impact
3. Sharing knowledge and experience in support of grass-root micro and community enterprises, start-ups, innovative and knowledge-based SMEs.

This will be implemented within a framework of collaboration and partnership with all stakeholders who are working to improve the lives of the communities we serve, to develop SMEs that promote inclusive economic growth, to consider the development needs of future generations and to provide services for all within the framework of the 2030 Agenda for Sustainable Development, and to leave no one behind.

Working together

This agreement recognizes not only the key role that SMEs play and will need to play in development as they provide the majority of jobs, deliver goods and services to underserved populations, increase the demand for educated labour, spur innovation and diversify economic activity in local economies beyond capital cities and in new sectors, and support social and economic resilience and growth.

The initiatives under this agreement will focus on, but will not be limited to:

• put the importance of SME development on the global agenda;
• stress the need to connect SME development with the Sustainable Development Goals (SDGs);
• work to mobilizing additional public and private resources for sustainable development; and
• address global challenges from an LDC perspective.

The agreement recognises the existing mandates, strategies, and programmes that each institution has in place, and their distinct capabilities and expertise to deliver on their responsibilities to Member States and shareholders. This partnership comes at a moment when the world has defined an ambitious SDG agenda which provides an unprecedented opportunity for transformative change, starting with the LDCs. The leadership of UNCDF and GASME will meet periodically to review the partnership and take stock of results achieved.