By The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 47 least developed countries.
With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through two channels: financial inclusion that expands the opportunities for individuals, households, and small businesses to participate in the local economy, providing them with the tools they need to climb out of poverty and manage their financial lives and by showing how localized investments—through fiscal decentralization, innovative municipal finance, and structured project finance—can drive public and private funding that underpins local economic expansion and sustainable development.
By strengthening how finance works for poor people at the household, small enterprise, and local infrastructure levels, UNCDF contributes to SDG 1 on eradicating poverty and SDG 17 on the means of implementation. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to several different SDGs.
Inclusive digital economies
UNCDF manages initiatives to develop inclusive digital finance ecosystems which offer a wide range of financial services specially for low-income vulnerable communities. Specifically, UNCDF provides a mix of policy, technical and financial support to a range of government and private sector actors in each country, as well as invests in research and other public goods to benefit all market actors. By supporting the development of digital finance ecosystem in these countries, UNCDF aims to increase the financial security of low income and rural households through access to appropriate, affordable and secure means to receive, manage and save money.
Recently, UNCDF has formulated its strategy ‘Leaving no one behind in the digital era’ based on over a decade of experience in digital finance in Africa, Asia and the Pacific. UNCDF recognizes that reaching the full potential of digital financial inclusion aligns with the vision of promoting digital economies that leave no one behind. The vision of UNCDF is to empower millions of people by 2024 to use services daily that leverage innovation and technology and contribute to the SDGs. UNCDF will apply a market development approach and continuously seek to address underlying market dysfunctions.
For more information, please see: https://www.uncdf.org/article/4567/uncdf-launches-digital-economy-strategy-leaving-no-one-behind-in-the-digital-era
Policy Accelerator
UNCDF has been working with national governments to improve access to financial services for over 25 years. In the last decade, we have focused specifically on the role that digital technologies play in accelerating usage of financial services by low-income people. In our role as a technical assistance provider and neutral broker, UNCDF works closely with global and national partners to build capacity and support governments to engage with industry to facilitate solutions to key market constraints at the local and regional level.
For more information, please see: https://policyaccelerator.uncdf.org/
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