UNCDF addresses critical challenges in mobilizing private and public capital for high-risk, frontier markets.

As a non-credit rated hybrid development and finance organization, UNCDF acts as an off-balance-sheet de-risker for national governments and development finance institutions, uniquely positioned to unlock domestic resources and attract substantial private finance in underserved markets.

Through innovative blended finance solutions, UNCDF bridges investment gaps in fragile contexts where traditional financial mechanisms often fail.

Our approach de-risks investments and enhances access to capital, to pave the way for transformative change in the world’s most vulnerable regions.

Our investment toolkit includes grant-funded guarantees, concessional finance instruments, and performance-based payments. These tools expand financial access for underserved communities while also facilitating their transition to sustainable, commercially viable financing.

In addition, UNCDF strengthens national and sub-national public financial management systems and enhances financial ecosystems, laying the groundwork for long-term economic resilience. By working closely with the United Nations Development System and major development finance institutions, UNCDF amplifies their impact, accelerating progress toward the Sustainable Development Goals.