Who we are

About UNCDF

Established by the United Nations in 1966, the United Nations Capital Development Fund (UNCDF) helps unlock finance in Least Developed Countries, Small Island Developing States, and fragile settings, where risks are high and capital is scarce.

UNCDF receives voluntary contributions and grants from partners and deploys them as performance-based and reimbursable grants, concessional loans, and risk-absorbing guarantees, alongside investment structuring and advisory support.

UNCDF uses these resources in a catalytic and revolving way to help countries prove investment viability, build pipelines, and crowd in larger flows from domestic finance, development finance institutions, private investors, and multilateral development banks.

Value Addition of UNCDF

Non-credit rated agency

UNCDF has increased appetite to provide concessional capital to below investment grade (C-category) ratings

Catalytic use of grant capital

Enables UNCDF to take risks in high-need areas where private sector investment appetite is low, leveraging its unique position to support last-mile communities and underserved groups

Crowding-in private capital

Aims to amplify its impact by using $1 of grant capital to unlock $3–$5 (or more) of private capital, for transformative change

Deployment of concessional finance instruments

Uses concessional finance to 1) improve returns to private investors that otherwise would not invest, and 2) facilitate affordable access to finance to end beneficiaries and their transition to commercial finance

Innovative financing models

Utilizes blended finance, social bonds, and impact funds to catalyze private investment

Unlocking domestic capital

Through partnerships and leveraging the UN’s in-country expertise, UNCDF blends catalytic and concessional finance to mobilize domestic resources and foster public-private collaboration

Market creation

Creates commercially viable markets in high-risk sectors like plastics, oceans, and clean cooking, reducing perceived investment risks and driving private capital flow

Robust impact measurement

Adheres to international best practices for transparency, accountability, and trust, ensuring solid reporting to mobilize additional resources from donors and member states

History of UNCDF

1966
UNCDF officially established as "autonomous organization within the United Nations" with the purpose to "assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans"
1966
1973
Governing council reorients UNCDF's activities towards "first and foremost the least developed among the developing countries"
1973
1990s
UNCDF began to focus on the role of local governments in planning, financing and maintaining capital investments. Also started supporting microcredit institutions, establishing itself as a leader in the field of microfinance (precursor to financial inclusion)
1990s
2014
Strategic Framework 2014-2017 Capital Investment: technical assistance in Local Development Finance and Inclusive Finance. Part of UNDP Strategic Plan 2014 -2017
2014
2015
Growth, Innovation and Partnerships 31 LDCs covered, responding to emerging development challenges, new development partners: private foundations and corporations
2015
13 December 2016
UNCDF's 50th Anniversary Commemorative events held in 10 countries
2016
2018
In the 2018-2021 Strategic Framework, UNCDF strengthened its lending and guarantee instruments in addition to its grants and technical assistance, and plays a key role in making blended finance approaches accessible to a broader range of United Nations entities and other development partners
2018
2021
Evaluation of the Strategic Framework recognizes UNCDF as unique within the UN system because if its capital mandate and its focus on LDCs
2021
2022
The new strategic Framework 2022-2025 is a framework that builds on the foundation and experiences of the organization to help UNCDF blaze a path forward as a fully realized hybrid economic development agency/development finance institution
2022
2025
UNCDF has been formally recognized in the outcome document of the Fourth International Conference on Financing for Development (FfD4), the Compromiso de Sevilla, which was approved by Member States and transmitted for adoption by the Conference
2025

UN General Assembly Resolutions

These UN General Assembly resolutions establish the founding framework for UNCDF and the work it carries out

GA 2186 — 13/12/1966

The UN General Assembly decides to bring into operation the UN Capital Development Fund as an organ of the General Assembly, as an autonomous organization within the UN.

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GA 2321 — 15/12/1967

The UN Secretary-General is invited to ask the Administrator of UNDP to administer UNCDF by performing the functions of the Managing Director.

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GA 3122 — 13/12/1973

The UN General Assembly decides on the feasibility of using the United Nations Capital Development Fund first and foremost for the least developed among the developing countries.

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Governance and funding

The UN Capital Development Fund (UNCDF) was established in 1966 as an autonomous, voluntarily funded UN organization affiliated with the United Nations Development Programme (UNDP). The UNDP Administrator serves as the Managing Director of UNCDF, while the Executive Secretary is responsible for leading the organization’s daily operations and program implementation.