On the Heels of the LDC5

Against the backdrop of global conflict, economic headwinds and the continuing challenges arising from COVID-19, the importance of this year’s Financing for Development Forum (FfD) was particularly amplified.

The traditional purpose of the FfD is to provide a yearly platform for actors in the development finance space to discuss existing hurdles standing in the way of financing sustainable development, notably to achieve the Sustainable Development Goals agenda (SDGs) by the 2030 deadline.

But this year’s FfD had additional significance in being the first forum convened after the 5^th Conference on the Least Developed Countries (LDC5), which was held in Doha, Qatar. The purpose of the LDC5 was to promote the Doha Programme of Action—the UN action plan representing a new generation of renewed and strengthened commitments grounded in bringing about sustainable development for the 46 least developed countries (LDCs).

In shifting from the LDC5 to the FfD, one essential question emerged: what steps are being taken to catalyze finance in support of sustainable development in the LDCs?

As the UN’s Catalytic Finance Entity for the World’s 46 LDCs, UNCDF is working to unlock public and private finance to realize the Doha Programme of Action. The FfD represents an important occasion to highlight how UNCDF is doing is advancing this critical effort.

Meeting with Partners in Sustainable Development

Achieving results at scale requires strong partnerships with a range of actors at global, regional and country levels. UNCDF works to significantly expand and deepen its long-standing partnerships with a growing network of domestic and international actors.

One essential category of partnership is LDC governments. UNCDF has been, and will remain, at the forefront of supporting LDC governments to achieve the outcomes of the Doha Programme of Action while also responding to country priorities.

Deputy Minister of Planning for the Government of Sierra Leone, Reverend Dr. Jonathan Titus-Williams Third from Left

On the sidelines of the FfD, UNCDF had the privilege of meeting with the Deputy Minister of Planning for the Government of Sierra Leone, Reverend Dr. Jonathan Titus-Williams, who led the Government’s official delegation.

Sierra Leone is an inspiring example of how our partnering with governments can result in delivering development on the ground. In 2022, UNCDF trained more than 10,000 entrepreneurs (92% women) in business development skills and financial literacy. As a result, 3,500 of these businesses formalized their operations and more than 1,000 applied for loans from local financial institutions.

Additionally, there is the INFF (Integrated National Financing Framework)—a tool developed by the United Nations to support countries in achieving the SDGs by aligning financing strategies with their development priorities. The INFF in Sierra Leone is being supported by UNDP and UNCDF, which are providing technical assistance and capacity building to the government and the private sector, touching on: mobilizing and leveraging resources, strengthening institutional and policy frameworks, and promoting private sector engagement.

2023 represents the final year of the Sierra Leone Government’s National Development Plan, as well as the year it will work towards creating its successor plan. UNCDF stands ready to support the government in both contexts in support of achieving its development vision.

Impact Capital for Development in Real Life

UNCDF was also privileged to host the Director-General of the Swedish International Development Cooperation Agency (Sida), Carin Jamtin, on the sidelines of the FfD. Sida has been an irreplaceable partner to UNCDF for many years. In 2022, Sida represented the largest provider of earmarked (non-core) resources to the organization.

The support of Sida undergirds every aspect of UNCDF’s workstreams, notably through the organization’s five priority areas: Inclusive Digital Economies; Local Transformative Finance; Women’s Economic Empowerment; Sustainable Food Systems Finance; and Climate/Energy/Biodiversity Finance. These five priority areas represent the core of UNCDF’s 2022-2025 Strategic Framework, which will guide the organization’s work for the next several years.

More importantly, the critical support of Sida is evidenced in the development impact that UNCDF has supported, including in the results achieved in 2022, which was the first year of implementation for the Strategic Framework 2022-2025.

A few of the top-line examples include:

• Supporting the development and scaling of more than 170 digital and financial products and services;
• Completing some 349 local investments primarily in climate resilient infrastructure, which, combined;
• Reaching more than 440,000 MSMEs and more than 16 million people.
• Issuing a total of $44 million in catalytic grants, loans and guarantees during the year with the explicit aim to catalyze additional flows of capital in support of UNCDF’s strategic priority areas.

UNCDF will share its complete 2022 results as part of its Annual Report in the new few months.

DPoA = UNCDF SF 2022-2025

Looking beyond this year’s FfD, UNCDF stands ready to work with any and all partners to realize the Doha Programme of Action to ensure the achievement of the SDG agenda.

The DPoA is defined by six priority areas:

• Investing in people in least developed countries; eradicating poverty and building capacity to leave no one behind;
• Leveraging the power of science, technology, and innovation to fight against multidimensional vulnerabilities and to achieve the SDGs;
• Supporting structural transformation as a driver of prosperity;
• Enhancing international trade of least developed countries and regional integration;
• Addressing climate change, environmental degradation, recovering from COVID-19 pandemic and building resilience against future shocks for risk-informed sustainable development;
• Mobilizing international solidarity, reinvigorated global partnerships and innovative tools and instruments; a march towards sustainable graduation.

UNCDF will continue to strategically align the DPoA’s six priority areas with its five priority areas. UNCDF will also engage with United Nations partners to assist resident coordinators in LDCs in mainstreaming the Doha programme of action into development planning.