In Focus

Investing in UNCDF

Making investments in the Least Developed Countries

Effectively meeting the growing demands for UNCDF support from LDCs and the UN requires adequate, flexible and predictable funding

The target in UNCDF’s Strategic Framework for 2022-2025 is $25 million for regular (core) resources and $75 million for other (non-core) resources, including $50 million for the BRIDGE Facility.

With its unique mandate and focus on the LDCs

A predictable funding will support UNCDF’s work to leverage official development assistance (ODA) to secure additional public and private resources for investment.

UNCDF’s four window funding architecture provides maximum flexibility for contributing partners and is designed to allow robust and scaled-up programming in the 46 LDCs.

01

Core Resources

Allow strategic and integrated country presence in LDCs and supports governments in their Agenda 2030 commitments

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02

Non-Core Resources

Allow targeted and integrated country, region, or thematic programmes

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03

Bridge Facility

Provides catalytic loans and guarantees funding deemed too small or too risky by traditional investors

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04

Last Mile Finance Trust Fund

Provides flexible non-core resources that enables UNCDF to allocate them based on its strategic priorities

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The Strategic Framework outlines the mission of the organization

At the center of the Strategic Framework is the UNCDF offer.

Download Strategic Framework Download UNCDF Offer

Core Resources

Core resources remain the bedrock of UNCDF funding. They allow UNCDF to plan for strategic, integrated country presence in Least Developed Countries (LDCs) and bring a range of tools to help governments achieve their Agenda 2030 Commitments.

Pilot and Innovate

Core resources allow UNCDF to pilot and test innovative new models. UNCDF’s current core funding seeds the innovations that will be the flagship programmes of the future.

Strengthen

Core resources fund the organizational backbone, ensure the highest standards of transparency and accountability, enable rigorous monitoring and evaluation, assure retention of high-quality staff, and provide seed capital.

Country Presence

Core resources allow UNCDF to maintain on-going country presence. Our experience shows that we need 12-18 months to develop a new programme, secure government and stakeholder support.

UNCDF builds a culture that leverages innovation

To realize its vision and Strategic Framework, UNCDF builds a culture that leverages digital and other types of innovation and encourages integrated approaches that are responsive to the priorities and opportunities of the LDCs.

Non-Core Resources

Non-Core contributions earmarked by UNCDF donors for specific purposes, including for a country, geographic area, theme, project, sector or any other category agreed upon by UNCDF and the donor.

Expansion

Earmarked non-core funding is currently the number one source of UNCDF’s annual income.

Focus

Donors may direct their funding toward a particular country, region, or broad category of programmes.

Partnerships

Partnerships with donors seeking greater involvement in the programming of their donations, and clear and concise monitoring mechanisms.

UNCDF deploys catalytic capital and financial advisory services matched with development expertise

UNCDF mobilizes its human capital, resources and expertise around a clear vision—that LDCs are able to access and leverage the development impact of capital to enable sustainable and inclusive economic growth and achieve the Sustainable Development Goals.

BRIDGE Facility

A blended finance de-risking facility for LDCs focused on providing catalytic capital to growth SMEs, small investment projects and other strategic investments.

Blended Finance

An innovative structure that targets the hardest to reach and most underserved areas.

Investment Continuum

The BRIDGE Facility is part of an “investment continuum” for SMEs, FSPs and municipal projects in LDCs.

Unlock capital

Two-pronged approach: on balance sheet to create demonstration effects, off balance sheet to scale-up what works.

UNCDF believes blended finance can play a key role to support LDCs in mobilizing resources

Despite increasing interest and efforts to deploy blended finance in LDCs, to date LDCs have not been able to harness the full potential of blended finance to attract private resources.

Last Mile Finance Trust Fund

The Last Mile Finance Trust Fund provides the most flexible non-core resources enabling UNCDF to allocate based on its strategic priorities.

Flexible Vehicle

The LMF Trust Fund provides a flexible vehicle for partners to support their LDCs' partners through innovative finance.

Multi-partner

The LMF Trust Fund is a multi-partner commitment to bring innovative finance solutions to the LDCs, as they pursue their SDGs and graduation targets.

Relevant to LDCs

Mobilizing public and private resources is critical to support structural transformation and LDCs graduation.

UNCDF provides partners with adaptable, LDC-focused finance instruments and vehicles.

To realize its vision and Strategic Framework, UNCDF builds a culture that leverages digital and other types of innovation and encourages integrated approaches that are responsive to the priorities and opportunities of the LDCs.

Committed to improving transparency and responsibility

To learn how the organization is using its resources please visit our

Transparency Portal

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