Read about the LFI transformative investments to realize Inclusive development in countries where poverty is entrenched, economic opportunities are limited and development plans underfunded.
The least developed countries have witnessed a resurgence in economic growth in recent
years, but it has not been sufficiently inclusive, given widespread poverty, high unemployment
and worsening inequality. Translating gains from economic growth into the lower ends of
the pyramid is a key milestone for localization of the Sustainable Development Goals (SDGs).
To realize inclusive growth, countries should have the capacity and resources to mobilize domestic capital to invest in the “last mile” pockets where poverty is entrenched, economic opportunities are limited and development plans under-funded.
This report highlights the achievement of the LFI Programme in terms of investments and the capacities required to facilitate domestic capital mobilization for sustainable development.
Specifically, transformative investments with a total value of $50.6 million are either completely implemented and operational or are at different stages of approval and disbursement. It is comprised of 61 per cent owners’ equity and 12 per cent UNCDF capital, with the remaining 27 per cent being the amount of additional domestic and international capital mobilized to invest
in these projects. In addition to the above, another $158 million is the total value of the LFI current active investment pipeline underpreparation and structuring by the LFI in six countries as of 31 December 2019.
The case studies, investment stories, challenges and lessons learned highlight the need for support to LDCs to build national capacities in key areas to remove bottlenecks to fund the SDGs.
LFI is a “body of knowledge” and is part of a broader maturity model of UNCDF’s innovation, learning and replication, and is now ready for implementation at scale. LFI lessons have been consolidated and repackaged
The scalability of LFI is possible within the context of (i) the UNCDF local economic development approach, where currently the LFI has been embedded into UNCDF country programs and replicated in Lesotho, Uganda, The Gambia, Guinea, Bangladesh and Tanzania; and (ii) replication to more developing countries as their own version of national capacities for mobilizing resources for the SDGs.
UNCDF’s use of LFI and its risk mitigation strategies is critical for leveraging limited public funds to unleash domestic, international and public capital to invest in and scale-up sustainable development.