Strategic Framework 2022-2025
Strategic Framework 2022-2025
Leveraging the Development Impact of Capital
How to best accelerate and scale our assistance to the world’s 46 least developed countries (LDCs) to support them to combat the devastating impacts of COVID-19, which has caused LDC economies to shrink, extreme poverty rates to jump and SDG progress to reverse.
With its unique mandate and focus on the LDCs
This is an unprecedented time of challenges, but do not forget that the LDCs also represent an enormous and untapped opportunity for inclusive growth and human development that can be harnessed with the right types of support.
To unlock this potential, and to tackle the structural constraints that exacerbate the crises and hold back sustainable development in the LDCs, will require increased access to capital.
This is where UNCDF comes in.
Our Mission
To serve as the United Nations flagship catalytic financing entity for the LDCs to strengthen financing mechanisms and systems for structural transformation
Building on our significant progress over the past four years and provide a platform for continued and accelerated growth that will allow us to enhance our development impact.
Impact Capital for Development
to invest in infrastructure and human development to build institutions, establish market systems, support entrepreneurship, harness the potential of youth and achieve basic standards of living for all.
For the Decade of Action, the United Nations Capital Development Fund (UNCDF) will serve as a unique combination of a development agency and a development finance institution. UNCDF is gaining prominence for its abilities and strategies to improve public and private financing mechanisms, reduce the risks associated with local investments, and bring in additional funds to spur growth in the LDCs' economies.
Under this Strategic Framework, 2022-2025, UNCDF will realize its full potential as a hybrid development organization and development finance institution
by fulfilling its overall financing mandate with capital deployment, financial advisory services and capital catalysation.
UN flagship catalytic financing entity for the LDCs
UNCDF expands its role as the United Nations flagship catalytic financing entity for the LDCs to include strengthening financing mechanisms and systems for structural transformation.
Deliver more support for the LDCs through the UN
UNCDF combines its Sustainable Development Goal financing capabilities, instruments and sector expertise with the wider development and operational capacities of the United Nations development system to deliver more comprehensive and impactful support for the LDCs.
Build partnerships with private and public actors
UNCDF continues to build partnerships with private and public actors to achieve greater results and development impact and unlock additional resources.
The Strategic Framework outlines the mission of the organization
At the center of the Strategic Framework is the UNCDF offer.
Strategic Framework UNCDF Offer
Strategic Context
The challenges and opportunities of the least developed countries
the Least Developed Countries
1 Billion
Population in the LDCs
1.3% of GDP
% of Global GDP
1.4% FDI
% Foreign Direct Investment
1%
% of Global Exports
The more than 1.08 billion people who live in LDCs face challenges ranging from their informal, undiversified economies to climate change and the global coronavirus disease (COVID-19) pandemic
These countries need capital to invest in infrastructure and human development to build institutions, establish market systems, support entrepreneurship, harness the potential of youth and achieve basic standards of living for all.
Structural Impediments
LDCs are confronted with a variety of structural obstacles, and mounting threats from climate change, biodiversity loss and fragile food systems, including the following:
Low
Productive Capacities
Low levels of productive capacities and largely undiversified, informal economies that are heavily reliant on agriculture and natural resources.
53%
Access to Energy
Only 53 per cent of the population of the LDCs have access to energy, with rates of access as low as 10 per cent in rural areas in some countries.
Inequalities
Widening Gaps
Increased gender inequality as well as existing inequities in the digital infrastructure.
1 in 5
Young Population by 2030
Current demographic projections indicate that, by 2030, one in five of the young people in the world will be born in the LDCs.
19%
Internet Access
Internet access in the LDCs increased from about 5% in 2011 to 19% in 2019.
30%
Undernourished People
Undernourishment is becoming more concentrated in the LDCs. Undernourished people in the LDCs has increased over the last decade to 29.9%.
Lessons Learned
Learning from our experiences to increase our impact, drawing on lessons learned from experiences and evaluations of our work.
An investment track record matters
UNCDF lays the groundwork for a novel investment proposition and partnership model for the LDCs.
Filling the missing middle finance gap
UNCDF increasingly allocates resources and pursues synergies with private and public actors to address this niche area of financing.
Leverage ODA to mobilize additional resources
UNCDF leverages scarce ODA resources to support LDCs to crowd-in additional finance.
Digital transformation
UNCDF helps to revolutionize how digital technologies can mobilize and channel finance—from domestic savings to crowdfunding and global platforms funding MSMEs.
Sub-national finance is key for SDGs
UNCDF helps shaping the global financial ecosystem to provide access to finance for cities and local governments at scale to achieve the SDGs.
Piloting and innovation
UNCDF deploys effective and innovative approaches to develop market systems and catalyse finance for stakeholders that benefit vulnerable populations.
Women’s Economic Empowerment
UNCDF's programmes address gender biases in norms and practises, empower women, and create enabling settings for women's financial access and control.
Strategic
Game-changers
Driving towards three development outcomes. UNCDF supports countries to pursue three interlinked and mutually reinforcing strategic game-changers:
Catalyze
Catalyze additional private and public flows of capital
Strengthen
Strengthen market systems and financing mechanisms
Accelerate
Accelerate inclusive, diversified, green economic transformation
UNCDF deploys catalytic capital and financial advisory services in support of the SDGs
Mobilizing and deploying capital for development in the least developed countries (LDCs) has never been more critical. The decade of action to achieve the Sustainable Development Goals began with an unprecedented health and socioeconomic crisis that may push up to 32 million more people living in LDCs back into extreme poverty.
The UNCDF Offer
UNCDF uses a combination of capital and development triggers applied across five priority areas to support countries to achieve three strategic game-changers.
Partnerships
Joining efforts with the UN system and beyond. UNCDF will expand and deepen partnerships with a growing network of domestic and international, public and private actors to achieve greater scale and impact.
Private Sector
Partnerships with the private sector on innovative financing mechanisms for the SDGs are central to UNCDF.
UN Member States
Innovating, achieving results at scale and mobilizing resources to achieve the UNCDF strategic vision require strong partnerships with Member States.
UN Funds, Programmes and other Entities
UNCDF is committed to deliver more support for the LDCs through the UN.
International Financial Institutions
UNCDF established mutually-beneficial partnerships with IFIs to enhance support for national governments and local communities.
Civil Society and NGOs
To leave no one behind, our collaborations and partnerships with civil society organizations are intended to maximise SDG-positive outcomes for all.
Academia
UNCDF will aim to significantly expand and deepen its long-standing partnerships with a growing network of domestic and international academia.
UNCDF provides partners with adaptable, LDC-focused finance instruments and vehicles.
To realize its vision and Strategic Framework, UNCDF builds a culture that leverages digital and other types of innovation and encourages integrated approaches that are responsive to the priorities and opportunities of the LDCs.
The Strategic Framework outlines the mission of the organization
At the center of the Strategic Framework is the UNCDF offer.
Strategic Framework UNCDF OfferStay Connected
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