UNCDF has partnered with Bamboo to set up the pioneering investment vehicle, designed to attract concessional and commercial growth finance to UNCDF’s pipeline of small and medium-sized enterprises (‘SMEs), financial service providers, and local infrastructure projects.

The partnership will provide innovative, blended finance solutions and ensure the full spectrum of capital is available to SMEs and other ventures in the LDCs. Through the investment vehicle, the UNCDF and Bamboo aim to address the “missing middle” financing gap that affects entrepreneurs in frontier markets, where growth is constrained by a lack of access to follow-on financing.

The investment vehicle builds on UNCDF’s experience of supporting a range of enterprises, many led by women, in the LDCs, as well as 50 years of experience in financial inclusion and local development to source projects that have the potential to become viable, sustainable businesses.