UNCDF unlocks urgent financial models for public and private resources at a local level where businesses and governments are under-served and resources are scarce. It demonstrates how official development assistance can be utilised towards limited resources for maximum impact.
The first channel which UNCDF works through is known as financial inclusion. This helps small businesses and households have entry into the local economy by providing tools to climb out of poverty and become more financially independent. The second channel is localised instruments, where financial models focus on fiscal decentralisation and structured project finance in order to achieve sustainable development and local economic growth. Finally, the third channel is investment finance, where capital deployment alongside financial restructuring and de-risking is used to mobilise domestic resources.
UNCDF is directly focused on contributing towards Sustainable Development Goal (SDG) 1 which is eradicating poverty and SDG 17 where the goal is to unlock local finance for the poor through partnership. To achieve such goals, it introduces innovative financial instruments and partnerships, de-risks markets and targets sectors where development financing has not been available.
The headquarters of UNCDF is New York City and their regional offices are at Dakar, Addis Ababa and Bangkok. It is present through 39 countries and was established in 1966 by the UN General Assembly. Since then, 3 million customers have been served UNCDF support and 89 new or improved financial products have been developed (as at 2021).
Philosophy:
‘…going the last mile for ending hunger, achieving full gender equality, and improving services – the belief that working together, we can assist LDCs to transform their economies and ensure that no one is left behind.’
UNCDF is funded by voluntary contributions from UN Member States, multinational corporations and foundations. Top 5 funders in 2020 are the Government of Sweden, European Union, UN Development Programme, Government of Switzerland and The Multi-Partner Trust Fund Office (MPTFO).
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