The dual key is a multi-factor analysis that helps UNCDF answer the question that will determine whether the investment will move ahead to financial disbursement.

The first step of the analysis is the “Technical Key” or “Impact Key”. By using this key, UNCDF determine whether an investment will deliver local impact in the form of local economic development, emergency response, women’s economic empowerment, climate change, food security or any other relevant form, thereby guarantying that the selected project is tailored to the specific goals of the program.

The second step of the analysis is the “Financial Key” that focuses on the financial impact of the projects, evaluating the business model with a range of strategic and financial tools. However, this second key is not only about bankability, but also looks for the financial impacts in the form of sustainability and follow-on investment potential. The Objective of this tool is above all to determine if the project presents a potential to sustain its activities based on its own business model once the investment is done.

The use of the “Dual Key” Approach has been instrumental in the Least Developed Countries, and other countries in need, to build stable and resilient local economies and by leveraging a range of technical expertise and investment instruments to reduce and limit economic and social hardship for poor communities. The Dual Key System systematically 1) identifies and encourages productive and catalytic investments; 2) Strengthens investments to make them bankable and investment ready; 3) Unlocks access to domestic and international finance for SMEs and revenue generating investments, which have a transformative and measurable impact on the local economy.