Organizations Will Aim to Raise US$40 Million in Order to Support 250 cities by 2025

The United Nations Human Settlements Programme (UN-Habitat) and the United Nations Capital Development Fund (UNCDF) today announced the launch of the Cities Investment Facility—which will advance and support sustainable financing at the local level, including for the world’s 46 least developed countries—as part of a partnership between the two organizations.

As part of a memorandum of understanding signed today by the two organizations, UN-Habitat and UNCDF will jointly implement the Cities Investment Facility (CIF), which is designed to support investment in small and intermediary cities, as well as develop and deploy innovative financial models. The CIF will play a critical role in advancing sustainable financing at the local/subnational level, where the vast majority of services that support sustainable development are delivered.

UNCDF and UN-Habitat will aim to raise USD 40 million over the next four years to support the programming, operations and technical support needed to finance the partnership. The goal of both organizations under the partnership is to reach 250 cities through their sustainable finance support by the year 2025.

UN-Habitat and UNCDF announced the partnership during an event held on the sidelines of the 2022 Forum on Financing for Development—the UN’s high-level convening on financing for development outcomes, as well as the means of implementation of the SDGs.

“The partnership between UN-Habitat and UNCDF will look to leverage each organization’s distinct strengths in order to support sustainable finance at the local level”

UNCDF's Executive Secretary Preeti Sinha

“The partnership between UN-Habitat and UNCDF will look to leverage each organization’s distinct strengths in order to support sustainable finance at the local level” said UNCDF's Executive Secretary,Preeti Sinha

Today UNCDF and UN-Habitat are delighted to join forces in a fused offering for cities , throught this offering cities in emerging and developping economies will be supported to build effective own-source revenues and public financial management systems supported to prepare high impact project that can be financed and reach local and international investors to deliver the SDG's impact.

UN-Habitat Executive Director Maimunah Mohd Sharif

Today UNCDF and UN-Habitat are delighted to join forces in a fused offering for cities , throught this offering cities in emerging and developping economies will be supported to build effective own-source revenues and public financial management systems supported to prepare high impact project that can be financed and reach local and international investors to deliver the SDG's impact said UN-Habitat Executive Director Maimunah Mohd Sharif.

The partnership between UN-Habitat and UNCDF will look to leverage each organization’s distinct strengths in order to support sustainable finance at the local level. UN-Habitat’s experience of promoting and consolidating collaboration with local governments to implement the Sustainable Development Goals (SDGs) will be coupled with UNCDF’s expertise in local transformative finance as the UN hub for subnational finance.

UNCDF and UN-Habitat will focus on several areas of locally-led sustainable finance, including and separate from financing sustainable cities through the Cities Investment Facility. Both organizations will also support cities in their efforts around local public financial management, which would include building local revenue capacity. Technical support will also be advance to ensure that local financing supports such goals as public financial management, finance for socially inclusive cities, and women’s economic empowerment.

Additionally, UN-Habitat and UNCDF will look to ensure that economic recovery from the COVID-19 is driven at the local level, as well as such recovery being economically just and green.