The present document outlines the UNCDF Strategic Framework, 2018-2021. It aims to support the achievement of sustainable development goals 1 and 17 in least developed countries by making finance work for inclusion, in collaboration with UNDP and other United Nations partners. UNCDF will do this by building on its years of experience in expanding inclusive financial markets and local development finance systems that help unlock public and private finance at the local level.

In building on its core competencies, UNCDF will pursue innovative finance solutions through: (a) financial inclusion that expands the opportunities for individuals, households, and small and medium-sized enterprises to participate in the local economy, with a focus on digital financial services; and (b) local development finance that shows how fiscal decentralization, municipal finance, and structured project finance can promote local economic expansion and local climate adaptation. Women’s economic empowerment is articulated across all UNCDF work.

The Strategic Framework articulates how UNCDF will strengthen its lending and guarantee instruments alongside its grants and technical assistance, and presents the role of the least developed countries investment platform in making blended finance approaches available to a wider range of United Nations partners, if called upon and funded to do so.

The Strategic Framework identifies four results-to-resources scenarios, providing Member States the means to recommit to supporting UNCDF to achieve the ideal scenario, which includes $25 million per year in core; $75 million per year in programme funding; and a $50 million capitalization of the LDC Investment Fund. This would support a strategic presence in 40 least developed countries.

The Executive Board may wish to take note of the Strategic Framework, 2018-2021.