Looking ahead, UNCDF is
prioritizing three areas:
FIRST, UNCDF will focus on scaling up programmes that unlock public and private finance and that enhance inclusive financial markets and local development finance systems. In local development finance, this means prioritizing work with municipalities, especially in urban areas, to mobilize funding so they can better serve local populations and meet their infrastructure needs; expanding work on local resilience finance, which brings together work on climate adaptation, food security and land restoration; attracting finance for projects that empower women; and mobilizing financing for pipelines of investable projects with clear development impact. In financial inclusion, this means prioritizing the expansion of financial services to reach underserved populations, especially women, girls and youth; using data-driven diagnostics to help governments develop financial inclusion strategies; helping to formalize remittance channels; and expanding work in crisis contexts, including in support of refugees and forcibly displaced populations. Digital innovations will remain a core feature of this work and are also integral to efforts to expand access to clean energy and to support the integration of smallholder farmers into agriculture value chains.
SECOND, UNCDF will continue to use its capital mandate to expand the frontiers of finance in LDCs. Through its LDC investment platform, UNCDF is playing an increasingly active role in mitigating risks to investments in local economies. While it currently focuses on providing guarantees and loans to projects supported by UNCDF, if funded and requested to do so, this platform could be expanded to also provide due diligence, credit rating and risk absorption to pipelines coming from other UN agencies. UNCDF is also investing in a thought leadership role on the application of blended finance in LDCs, the findings of which it intends to use to build a community of practice and shape the actions of development actors and investors.