FOR IMMEDIATE RELEASE

The Government of Germany became the tenth contributor to the United Nations Capital Development Fund’s (UNCDF) Last-Mile Finance Trust Fund (LMF-TF), a multilateral trust fund that pools investments to support the achievement of the Sustainable Development Goals in the world’s least developed countries (LDCs). Germany will contribute €12,000,000 to the LMF-TF.

The Last Mile Finance Trust Fund is a flexible-funding vehicle that enables contributors to pool resources to channel them towards shared strategic priorities impacting LDCs in the “last mile.” The fund was conceived as a vehicle designed for development funding that is lightly earmarked or tied to thematic priorities.

UNCDF and the Swedish International Development Cooperation Agency (Sida) officially launched the LMF-TF in June of 2016, with an anchor donation of just over $2.2 million. In the seven years since, the donor pool has expanded to ten donors, and the funding pool now exceeds $92 million. Over this time, the LMF-TF has engaged in a close partnership with its donors to pool funding projects across six thematic areas, fostering a true sense of cooperation and collective effort, including:

1. Financial Innovation

2. Inclusive digital economies

3. Local transformative finance

4. Women’s Economic Empowerment

5. Sustainable Food Systems Finance

6. Climate, Energy, and Biodiversity Finance

“The Last Mile Finance Trust Fund provides a flexible mechanism to bring donors together to finance opportunities that are aligned to their priorities. I am confident that our contribution strengthens strategic collaborations between UN organizations as well as Germany and UNCDF,” noted Ambassador Thomas Zahneisen, Deputy Permanent Representative of Germany to the UN.

Germany will deploy its contribution to the LMF-TF into the “Financial Innovation” Window under “Investing for Peace”- sub-window. The Investing for Peace sub-window endeavors to spark a ripple effect of stability and prosperity in war-torn regions. Through the infusion of growth capital into Small and Medium Enterprises (SMEs) operating within conflict-affected areas, this initiative aims to cultivate dividends that foster peace and stability within these communities. By transforming these regions into beacons of hope and growth, previously overshadowed by violence, the project endeavors to attract further investment and broaden opportunities for sustained positive impact in conflict zones.

“Investing in peace is an essential building block for the peaceful world we so lack, and this collaboration with the Peace Building Fund and the government of Germany to use innovative finance to bring sustainable peace through job creation will contribute to sustaining peace in many countries," said Mourad Wahba, Officer in Charge, UNCDF.

“Germany led the Investing for Peace (I4P) Feasibility Study, a coalition led by the UN Peacebuilding Support Office (PBSO), the Government of Germany as part of its overall support for the Peace Building Fund, and the United Nations Capital Development Fund (UNCDF). The I4P Study proposed the establishment of a dedicated foundation as well as an investment vehicle for peace-responsive investments, utilizing a blended finance approach in conflict-affected settings. I am glad that we are progressing in the implementation of these recommendations,” indicated H.E. Mr Zahneisen.

Germany has been an unwaveringly significant ally to UNCDF's mandate as the UN's flagship catalytic financing agency for the world’s 46 least developed countries. Over the years, the government of Germany has pledged substantial support for numerous initiatives—a testament to their commitment to international development and the world's most vulnerable nations. As one of UNCDF’s newest donors to the LMF-TF, Germany’s contributions will serve as catalysts in the last mile, where development needs are greatest and where resources are most scarce.

“I am honored that Germany has joined the Last Mile Trust Fund (LMFTF). Germany is a most welcome partner in the endeavour to reach the world’s poorest. UNCDF looks forward to further collaboration with Germany”, added Mr Wahba.

About the Last Mile Finance Trust Fund

The Last Mile Finance Trust Fund allows donors to support the UN Capital Development Fund’s use of innovative financing and business models to promote sustainable development in the “last mile” areas of the least developed countries (LDCs), where resources are scarcest and the development challenges for underserved populations are the greatest.

The LMF-TF will allow UNCDF to use different types of funding from public and private donors to reinforce each other—core funding that supports operations and earmarked non-core funding for programmes—and form an intermediary for flexible and thematic funding for the organization to be more efficient and effective.

For more information, visit www.uncdf.org/lmftf.

About UNCDF

The UN Capital Development Fund (UNCDF) is the United Nations' flagship catalytic financing entity for the world’s 46 least developed countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

For more information, visit www.uncdf.org.