Among the 46 LDCs, 33 or 3/4 are in Africa. A continent that faces several challenges (lack of budget, high unemployment, climate change, food insecurity) aggravated by the COVID-19 pandemic whose devastating effects have led to a collapse of health systems, economic stagnation and thus a reversal of progress towards achievement of the Sustainable Development Goals (SDGs).
Recognizing Africa's enormous growth potential, UNCDF remains convinced that increased access to capital is the key to achieving positive transformation of economies and moving towards sustainable development. And therefore "transformation" is the cornerstone of our work in Africa.
This “UNCDF in Africa” report showcases our contribution to African economies transformation which is very large and includes:
- women and youth empowerment by supporting SMEs finance;
- reduction of the vulnerability of local communities through climate-smart finance;
- transformative impact at the local level through investments in infrastructure and local private sector initiatives;
- improvement of decentralized systems, access to local infrastructures and services
- and enhancement of livelihoods through social and economic projects across the continent.
This report provides concrete examples of financing solutions in countries such as Guinea, Gambia, Kenya, Mali, Somalia, Tanzania, and Uganda. Those examples show that working with partners and building financial sustainable mechanisms can be the source of inclusive and sustainable development.
Under our new strategic framework (2022-2025), we intend to capitalize on the long tradition of collaboration with African countries and our role as the United Nations flagship catalytic financing entity for the LDCs to include strengthening financing mechanisms and systems for structural transformation. To deliver on this, UNCDF is reorienting its local development finance work to “local transformative finance”, becoming a technical and financial partner for local transformation. UNCDF combines finance and investment instruments with sector expertise across all aspects of subnational public and private finance.
“Local government finance is development finance”.
