| United Nations Capital Development Fund (UNCDF) |
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The United Nations Capital Development Fund (UNCDF) offers a unique combination of investment capital in two areas, capacity building and technical advisory services to promote microfinance and local development in the Least Developed Countries:
• UNCDF’s microfinance programmes provide poor households and enterprises with enhanced access to a wide range of financial services by promoting inclusive financial sectors and providing investment capital for emerging microfinance institutions (MFIs) and other financial service providers (FSPs) in the LDCs.
• UNCDF’s local development programmes support national decentralization strategies in the LDCs and seek to improve social services, governance and pro-poor economic infrastructure at the local level by providing technical assistance and investment capital directly to local authorities. UNCDF’s investment capital is flexible, high-risk and innovative. It is channeled primarily to poor rural areas in the LDCs where poverty reduction, capacity and governance challenges are typically the greatest. UNCDF currently invests in 28 LDCs with a total programme portfolio amounting to approximately US$125 million. Through its programmes, UNCDF strives to contribute to the attainment of the Millennium Development Goals and to the implementation of the Brussels Programme of Action for LDCs in a direct, concrete and measurable way.
As a result of UNCDF’s financial sector development programmes, National Strategies and Action Plans for financial inclusion have been adopted and are currently being implemented by a number of LDCs. UNCDF is focusing its efforts of building inclusive financial sectors on LDCs in sub-Saharan Africa, but also has programmes in LDCs in Asia and the Arab States. Within its Local Development Practice Area, UNCDF currently invests in 23 LDCs with a strong focus on Africa and plans to expand its portfolio to 40 LDCs in the next five years.
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