Local Finance Initiative (LFI)

Local Finance Initiative (LFI)

Le Défi

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.

Que fait l'UNCDF pour aider ?

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.

En détail


Local Finance Initiative (LFI)

OBJECTIFTo unlock flow of domestic capital to finance local projects needed to promote inclusive local economic development.

The LFI Programme is executed through four main programmatic components: 

  • Technical support to project developers throughout the project development cycle, including business plans, financial models, feasibility studies etc.
  • Finance and credit enhancement instruments such as seed capital, guarantees and grants to kick-start projects.
  • Capacity-building to public and private project developers to help them identify, design and manage bankable projects.
  • Monitoring and evaluation of development projects to ensure impact to communities and contribution to local economic development.
PéRIODEOngoing (2014-2017)
ACTIF AUBenin, Tanzania, Uganda.
UNCDF, Government of Tanzania President’s Office-Regional Administration and Local Government; Government of Benin Ministry of Decentralization, Local Governance and Administration of Land; Government of Uganda Ministry of Local Government and Sida

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