Local Finance Initiative (LFI)

Local Finance Initiative (LFI)

The Challenge

Development in the LDCs of the private sector and local economic development is critical to poverty reduction and job creation. However, development is limited by the lack of adequate finance for infrastructure and agriculture-processing projects coupled with poor business-enabling environments. Both government officials and private sector stakeholders need concrete roadmaps and capacity-building interventions that empower them to develop and finance critical infrastructure projects as well as to improve the underlying business-enabling environments.

How We Are Helping?

The Local Finance Initiative (LFI) is an innovative global programme that addresses this challenge through a targeted technical programme aimed at unlocking domestic financial sectors and improving business-enabling environments.

LFI achieves its goals through developing small and medium-sized demonstration projects, applying proven financial techniques with targeted credit enhancement, coupled with targeted capacity-building interventions, including on-line consultation and information tools.

To learn more about the Local Finance Initiative, please download the LFI brochure

In Detail


Local Finance Initiative (LFI)

GoalTo unlock flow of domestic capital to finance local projects needed to promote inclusive local economic development (“LED”).
  • By strengthening domestic finance in local economies through both traditional basic infrastructure and industrial infrastructure projects such as energy, transport, warehouses, industrial pools, logistic platforms, food processing plants, etc.;
  • By providing proven project development and financing techniques enabling private investments in local development.
  • By providing technical and financial advisory support that is critical to ensure that projects reach financial close.
  • By developing capacities through training and ‘learn by doing’ of local Technical Support Providers, national and local government officials, bank officers, and project sponsors.
PeriodOngoing (2012-2015)
Target Countries


Active InTanzania, Uganda.
PartnersUNCDF, Government of Tanzania PMO-RALG, SIDA
Seed Funding from DFAT


Total project cost and UNCDF contribution$33,250,645

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