Investing in the Least Developed Countries

UNCDF is mobilizing investments in local economies through catalytic loans and guarantees that mitigate risks for public and private investors

Mobilizing and deploying capital for development in the least developed countries (LDCs) has never been more critical. The decade of action to achieve the Sustainable Development Goals began with an unprecedented health and socioeconomic crisis that may push up to 32 million more people living in LDCs back into extreme poverty.

UNCDF mobilizes investments in local economies

The enabling mechanism for these activities is the LDC Investment Platform, which is creating new opportunities for UNCDF to expand its support for local infrastructure and businesses in the last mile.

Structure, produce credit ratings and mitigate risks in investment opportunities

The LDC Investment Platform is helping UNCDF programmes to structure, produce credit ratings and mitigate risks in investment opportunities they have sourced, both from the private and public sectors.

New loan and guarantee policy and a credit scoring model

UNCDF has put in place new loan and guarantee policies, strengthened its due diligence requirements and transaction documentation, launched a credit scoring model and enhanced the process to support the selection and approval of relevant loan and guarantee transactions.

Assess last-mile finance pipelines from UNDP and the wider UN System

When sufficient funding and demand are secured, the platform will be expanded to take into consideration last-mile finance pipelines from UNDP and the wider United Nations Development System.

Least Developed Countries Investment Platform

Strong legal framework, investment tools, loan and guarantee operations, due diligence, credit scoring and risk assessment

UNCDF strengthened its legal framework and introduced support tools to field investment staff and has increased human capacities to manage and oversee the loan and guarantee operations, while ensuring robust due diligence, credit scoring and risk assessment.

Invest in niche market opportunities

To ensure development and financial additionality, looks to invest in niche market opportunities where: finance is not yet flowing predictably because of real and perceived risks; the recipient can make productive use of the capital and ensure repayment, UNCDF has the potential to mobilize additional capital flows;

01

Risk Assessment

finance is not yet flowing predictably because of real and perceived risks.

02

Use and Repay

the recipient can make productive use of the capital and ensure repayment,

03

Mobilize Capital

UNCDF has the potential to mobilize additional capital flows.

04

Development Results

there is scope to achieve significant development results.

UNCDF seeks to accelerate financing for development in the LDCs

by fulfilling its overall financing mandate with capital deployment, financial advisory services and capital catalysation.

What We Do