Sida Commits SEK 138 Million to Trust Fund Dedicated to Supporting World’s Least Developed Countries
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UNCDF & Sida Commit to Supporting, Advancing and Strengthening Achievement of the SDGs
The Swedish International Development Cooperation Agency (Sida) today announced its financial commitment for 2023 into the UN-administered “Last Mile Finance Trust Fund” (LMF-TF), amounting to SEK 138 million (USD 13~ million). Sida so far has contributed over SEK 419 M(~USD 40 million) into this Trust Fund and this contribution is very well aligned into the new strategic framework of UNCDF.
"We thank Sida for the confirmation of an SEK 138 million grant and for being such a critical partner of UNCDF through their support of the Last Mile Finance Trust Fund. This innovative Trust Fund is designed to complement core funding with financial instruments leveraging cutting edge technical assistance, and multi-lateral development cooperation," said Xavier Michon, UNCDF Deputy Executive Secretary.
Through the LMF-TF, Sida’s funding will be used to support, advance and strengthen sustainable development in the world’s 46 least developed countries, which are widely believed to be the geographies where the success of the Sustainable Development Goals agenda (SDGs) will be determined.
Overseen by the United Nations Capital Development Fund (UNCDF), the LMF-TF is a multinational trust fund that pools flexible funding from donor countries to support the achievement of the SDGs in last mile markets within developing and least developed countries. Sida’s funding will be used to finance UNCDF’s projects across many LDCs to support sustainable development, including Uganda, Senegal, Bangladesh, Myanmar, Tanzania, and Malawi.
Sida’s funding into the LMF-TF will also be used to attract and pool funding from other countries towards shared development priorities, specifically: climate, clean energy and biodiversity finance; inclusive digital economies; financial innovation, sustainable food systems finance; and local transformative finance.
Sida was the inaugural donor when the LMF-TF was launched in 2016, with an initial disbursement of USD 2.5 million. Since Sida’s support in launching the fund’s, the LMF-TF has grown to include nine donors and total finance pool of just over USD 65 million.
Results achieved under the LMF-TF in 2021 include supporting over 3 million micro-merchants with digital solutions, supporting National Financial Inclusion Strategies in 14 countries, catalyzing over US$4 million for local transformative investments, piloting our programme to promote inclusive economic development for women in three countries, directly raising US$25 million for locally-led climate adaptation, and supporting partners in the sale of roughly 400,000 clean energy products in Uganda and Ethiopia alone.
As the UN’s flagship catalytic finance entity for the world’s 46 least developed countries, UNCDF administers the LMF-TF. UNCDF’s vision is for LDCs to be able to access and leverage the development impact of capital to enable sustainable and inclusive economic growth and achieve the Sustainable Development Goals. UNCDF will work to achieve a future where poverty is eradicated in all its forms and dimensions, where people in LDCs live in dignity and can access finance, key services and goods through strong institutions, a vibrant private sector and diversified local economies that have a net positive impact on the environment.