About the Last Mile Finance Trust Fund and the LDCs
To ensure that growth is equitable and sustainable, leaving no one behind, it is important that finance flows to the “last mile”—where development needs are greatest and where resources are most scarce.
The Last Mile Finance Trust Fund allows donors to support the UN Capital Development Fund’s use of innovative financing and business models to promote sustainable development in the “last mile” areas of the Least Developed Countries (LDCs): where resources are scarcest and the development challenges for underserved populations the greatest.
The LMF-TF will allow UNCDF to use different types of funding from public and private donors to reinforce each other—core funding that supports operations and earmarked non-core funding for programs and form an intermediary flexible and thematic funding for the organization to be more efficient and effective.
In this way, UNCDF can provide support along the entire spectrum of an investment’s financing needs to support LDC governments, build capacity in the public and private sectors, and realize the goal of building viable, sustainable businesses that continue their development impact into the future.
Investments of loans, guarantees and
other financial instruments are facilitated through the BRIDGE Facility which aims to catalyze growth capital for SMEs, Financial Service Providers (FSPs), municipalities, and other entities that bring basic services and infrastructure to people in last-mile markets.
Creating new opportunities for larger funding, particularly in the areas of MSME finance and growth (Digital Catalysts), digital skills (Digital Futures), and Policy and Advocacy.
Support policy, financial and technical
support for local infrastructure to local governments to unlock impact capital from financiers including domestic banks, domestic capital markets and international financiers.
Address the barriers to digital and financial inclusion of all women in LDCs by enhancing women’s capabilities, enabling their access to digital and financial services, and transform cities into spaces of equal opportunities by targeting those who are vulnerable and marginalized.
Transformation towards sustainable and inclusive food systems can help address hunger, food insecurity and malnutrition and improve health by addressing diet-related diseases, as well as fight poverty, protect and restore biodiversity, and tackle climate change through GHG reduction.
Increase investment in enhanced decentralised energy markets. Build biodiversity financial systems, expedite private investment, and create markets that conserve, transform, and evaluate nature assets. Promote vertical integration of the Nationally Determined Contributions and National Adaptation Plan process and emphasise nature-based solutions and sustainable biodiversity.
A unique mandate and focus on the LDCs
The thematic windows represent areas where UNCDF has already proven concept of workable public/private finance models that are relevant to the 2030 Agenda; and enjoy already established and/or evolving partnerships with UNDP and other UN system partners, international development banks, and across the public and private spheres. Thematic windows will be underpinned and operationalized through UNCDF’s existing global, regional and country programme architecture.
What We Do Where We WorkAn Advisory Board composed of representatives of contributing development partners, LDC governments, and UNCDF will guide the Last Mile Finance Trust Fund.
Fund allocation will be decided by an Allocation Committee with regular reporting and transparency norms. Trust Fund reviews and evaluations of underlying programmes will be shared with the Advisory Board, and lessons and knowledge products disseminated and discussed as an integral part of partner deliberations and learning.
To know more about the Governance of the Last Mile Finance Trust Fund, please consult the Trust Fund Document.
Composed of representatives of contributing development partners, LDC governments, and UNCDF will guide the Last Mile Finance Trust Fund.
Fund allocation will be decided by an Allocation Committee with regular reporting and transparency norms. Trust Fund reviews and evaluations of underlying programmes will be shared with the Advisory Board, and lessons and knowledge products disseminated and discussed as an integral part of partner deliberations and learning.
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