As Prepared for Delivery

Excellencies, Esteemed Colleagues, Ladies and Gentlemen

I am honored to speak on behalf of the United Nations Capital Development Fund (UNCDF) at this first LLDC3 Preparatory Committee meeting.

UNCDF leverages its investment expertise and tailored financial instruments to employ innovative and blended finance approaches to catalyze capital for development. We are strongly committed to supporting LLDCs and other vulnerable nations, with a focus on the least developed countries, in their pursuit of the 2030 Agenda.

Recognizing the distinctive challenges faced by LLDCs, UNCDF is actively developing solutions that can be replicated and scaled for lasting impact. One such challenge is the lack of finance to MSMEs. Today, we echo the call in the draft outcome document for a dedicated financing mechanism to provide catalytic financing for MSMEs in LLDCs to help unlock more private investments.

UNCDF already manages one such catalytic financing facility, the BRIDGE Facility. Specifically designed to fill the missing middle gap for SMEs, local infrastructure projects, and financial service providers, it targets SDG positive businesses and projects between USD 100,000 to USD 1 million. In Rwanda, for instance, UNCDF is collaborating with the World Food Programme to provide targeted loans and guarantees to benefit agri-business MSMEs and smallholder farmers, particularly women and youth businesses.

Infrastructure development is another critical area where UNCDF makes a difference. We endorse the idea in the draft outcome document of establishing an infrastructure investment finance facility for LLDCs and express our willingness to share lessons learned from the International Municipal Investment Fund, a bespoke investment fund initiated by UNCDF and partners to invest in infrastructure projects at the municipal level.

Lastly, UNCDF has a long history of supporting digital finance solutions that drive inclusive digital economies. We therefore stand ready to support the call for new financial instruments that harness digital innovations for financing national sustainable development priorities. In Uganda for example, UNCDF is helping to equip millions of people with innovative digital services and digital skills.

In conclusion, we look forward to engaging in the preparatory process in the coming months and to contribute to a successful conference in Kigali.

Thank you.