Despite widespread recognition of the vital importance of achieving women’s economic empowerment, the resources available to finance and execute meaningful interventions in this area have continually fallen short, especially for least developed countries (LDCs).A meagre 5 percent of bilateral development aid is primarily targeted at gender equality, and financing from private and local government sources, albeit growing, is still low in relation to the challenges and opportunities to address it. For example, in 2019,
allocated private funds with a gender lens amounted to US$4.8 billion and by the end of2020, US$11 billion most of which to the United States of America and almost none explicitly to LDCs.

A critical strategic priority for United Nations Capital Development Fund (UNCDF) is the economic empowerment of women and girls in the last-mile economies to bring transformative and long-term systemic change. Given the fragile and under developed economic structures, promoting their economic empowerment in LDCs is an important step for reducing entrenched poverty and inequality, particularly in the most vulnerable and underserved parts of the world.

In line with the corporate Strategic Framework (2022–2025), UNCDF’s Gender Equality Strategy (2022–2025) focuses on a transformative approach to promoting women’s economic empowerment and gender equality. The Strategy highlights the centrality of addressing structural and discriminatory practices, and creating a conducive policy and institutional framework as an important foundation on which to build a financing agenda that targets equitable economic development and gender-responsive transformation. In the context of the negative impacts from COVID-19 and emerging climate-related vulnerabilities, especially in LDCs, where the most vulnerable populations, including women and girls, are affected, the Strategy also emphasizes building sustainable financing solutions to address gender inequality.

Read more about UNCDF's Gender Equality Strategy 2022-2025