UN Capital Development Fund (UNCDF)

The United Nations Capital Development Fund (UNCDF) is the United Nations flagship catalytic financing entity for the LDCs. In 2021, UNCDF operated in 37 LDCs. With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving ​the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031. UNCDF aims to strengthen financing mechanisms and systems to contribute to transformation pathways such as green economy, digitalization, urbanization, inclusive economies and gender equality and women’s economic empowerment.

In 2021, UNCDF disbursed more than $38 million through strategic grants, loans and guarantees  which collectively unlocked $89 million in direct and catalytic financing along with an additional $37 million channeled through decentralized financing mechanisms supported by UNCDF.

Here are some of UNCDF's instruments:

Last Mile Trust Fund

BRIDGE Facility (Blended Finance)

LoCAL (Climate Change)

Migration and Remittances Programme

Policy Accelerator

What happens after graduation?

After a country graduates from the LDC category, programmes can continue to be funded by the UNCDF under the same conditions for a period of three years. Assuming continued development progress, funding for another two years can be provided on a minimum 50/50 cost-sharing basis with either the Government or a third party. During this period, UNCDF will define a sustainable exit strategy for its activities, placing an increasing focus on strengthening national systems and capacities of country stakeholders to design and implement viable financing mechanisms and facilities that catalyze public and private capital for SDG investments.

See also BRIDGE Facility (Blended Finance) and LoCAL (Climate Change)

More on UNCDF on this Portal