UNCDF will join, through the present Joint Programme with !FAD, the Multi-Donor Financing Facility for Remittances (FFR) set up by !FAD, which is co-financed by the European Union, the Consultative Group to Assist the Poor (CGAP), the Government of Luxembourg, the Inter-American Development Bank and the Spanish International Cooperation.
The FFR's purpose is to scope out, select, and fund innovative approaches that facilitate access to remittance services by the poor. UNCDF's partnership with IFAD (who will be the Managing Agent in this Joint Programme, through the Pooled Funding Mechanism) reflects the promotion of the "Delivering as One" approach on the theme of financial inclusion as well as UNCDF's recognition of IFAD's comparative advantage in the donor community in this area.
As a member of the FFR's Steering and Investment committees, UNCDF will, beyond its own contribution (to be used in LDCs only), participate to the selection process of all proposals. UNCDF's contribution will therefore be greatly leveraged by contributing to a funding, results framework and evaluation agenda of a US$ 13 million initiative.
UNCDF will derive from this programme a strong learning agenda about the role that remittances may play in the promotion of inclusive financial sectors. In addition, this Joint Programme will contribute to UNCDF's agenda on the promotion of product diversification as highlighted in its Business Plan and will strengthen its strategic partnerships with other donors in this key emerging area.