In 2017, the Government of Uganda (GoU) launched the Development Initiative for Northern Uganda (DINU) funded under by the European Union (EU) under the 11th European Development Fund (EDF). DINU is designed to support the GoU in achieving national targets for SDG 1 (No Poverty) and SDG 2 (Zero Hunger).

Since September 2017, UNCDF is implementing selected actions of DINU across all 3 Specific objectives. Under DINU, UNCDF is working with national and local organizations - MDAs, local
governments, private sector entities and NGOs - to improve their capacities to identify, develop, finance and implement local investment projects using public and private finance. To do so, it applies TA, training, seed capital and specialized investment vehicles.

The theory of change of DINU’s UNCDF component (Annexes) assumes that a key condition for equitable, balanced and sustainable local development is the reduction in transaction costs to improve the effectiveness and efficiency of local investments for service delivery and economic activities. Accordingly, the three outcomes of DINU’s UNCDF component are:

1. Improve access to finance for SMEs engaged in agricultural value addition through a dedicated facility for Business Development Services (BDS) and blended finance.
2. Improve the stock and quality of the district-level road assets through a District Road Rehabilitation Fund and dedicated technical assistance (TA) and improve local service delivery for road assets.
3. Increase local fiscal space and improve local service delivery through a discretionary grant mechanism and technical assistance to core local government functions, including customary land tenure systems.