ABOUT UNCDF

As a hybrid development and finance organization with a unique capital mandate, the UN Capital Development Fund is positioned to act as a catalyst in high-risk markets, particularly in Least Developed Countries, Small Island Developing States, and fragile/conflict-affected countries.

These environments often face significant barriers to attracting private and public capital, hampering the pace and scale of progress to achieving meaningful development outcomes.

UNCDF stands out as the only non-credit-rated UN entity with the capacity to deploy blended finance solutions, de-risk investment and unlock private and public capital at the last mile.

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

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.

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