Least Developed Countries (LDC) in Africa typically face significant financing gaps in their efforts to achieve Sustainable Development Goals (SDGs) including SDG #13 on climate action. Yet, only a very limited portion of private finance is invested in LDCs, making it more difficult for these countries to meet their goals. It is, therefore, crucial that commercial investors, DFIs, IFIs, and impact investors alike work with partners to find ways to increase their capital flows toward LDCs, where resource needs are greatest.

The UN Capital Development Fund (UNCDF) supports LDCs in their progress to achieving “the human right to a clean, healthy and sustainable environment,” as per Stockholm+50’s mission. UNCDF applies its technical background to empower LDCs in attracting climate finance investments. There are multitude of ways UNCDF aims to help: by catalyzing capital as well as by strengthening market systems and financial mechanisms with both concessional loans and guarantees.

On 2 June 2022, UNCDF and Sida co-hosted a Stockholm+50 associated hybrid event, UNCDF and the BRIDGE Facility on “How to Fill the Gap with Loans and Guarantees in LDCs for Clean Energy, Climate, and Women Empowerment Project” at Sida’s offices in Stockholm, Sweden. The conversation covered how guarantees can facilitate the goals of partner agencies as well as women and women-supported businesses. This discussion had a special focus on the need to redesign the international development financial architecture, for more investment capital to go to the LDCs and fragile states.

The objective of the event was to bring together representatives from international organizations, LDC and donor/developed country governments, and private sector to share experiences and perspectives on challenges and opportunities for how guarantees can most effectively be used to enable sustainable development pathways for LDCs towards achieving a healthy planet for all.

Moreover, the panel included UN Women and aimed to elaborate on how guarantees are used to create sustainable economies, which are gender diversified. This resonates with one of Stockholm+50’s pathways towards a healthy planet by rebalancing resource use for greater equity and promotes gender equality (SDG#5).

Presenters, Speakers and Panelists included: Kalle Hellman, Deputy Head, Unit for Guarantees and Catalytic Financing for Development, Sida; Gunanidhi Das, CEO, Women’s Micro Bank; Preeti Sinha, Executive Secretary, UNCDF; Caroline Nyamayemombe, Deputy Country Representative, UN Women; Edward Vrkic, Deputy Resident Representative, Papua New Guinea, UNDP; Abhisheik Dhawan, Partnerships Development Specialist, UNCDF; Anders Berlin, Director LDC Investment Platform, UNCDF; Ola Sahlen, Senior Programme Specialist, Sida; Suzanne Krook, Deputy Head, Unit for Global Sustainable Economic Development, Sida; Fatoumatta Sanyang, Programme Analyst, Environment & Energy, UNDP, Gambia.

UNCDF again thanks Sida for co-hosting this important and timely event.