UNCDF LMFTF 2019-2025

The United Nations Capital Development Fund (UNCDF) is the UN’s capital investment agency for the world’s 47 Least Developed Countries (LDCs). UNCDF uses its capital mandate to help LDCs pursue inclusive growth through financing inclusive financial systems and by facilitating access to capital for e.g. climate resilence investments. UNCDF is affiliated to the United Nations Development Programme (UNDP) and is included by their processes, policies and regulations.The Contribution includes The Last Mile Finance Trust Fund (LMFTF) which includes the finance mechanism The Booster Fund as well as the programme Better than Cash Alliance (BtCA) which is hosted by UNCDF. The total sum of the intervention is 189 million SEK to be disbursed during the period 2019-2021, including an annual contribution of 8 million SEK to BtCA.Within the framework of LMFTF there are multiple programs:- CleanStart, a program with the goal of providing 500 000 people with clean energy solutions (e.g. solar panels, mini grids, clean cooking stoves) through investments- Making Access Possible, an initiative to support financial inclusion through analysis and road mapping- DF+, which creates digital financial solutions for innovations which contribute to the SDGs - MicroLead, a global initiative that challenges financial service actors to develop, test and upscale deposit services for people with low incomes, especially rural women- The Finance for Food Security, which works for food security and against malnutrition through encouraging local, gender sensitive investments to fill the gaps of the local food system- IELD, which works with central and local governments to build capacity for gender responsive economic policy and seeks to identify hindrances for female participation in economic activity - Municipal Investments Finance, which supports municipalities in inproving the access to finance services, focusing on secondary cities within LDCs, as opposed to merely capital cities. Programmes within the Booster Fund (also par of the overall LMFTF umbrella):- Local Climate Adaptive Living Facility (LoCAL), which works with integrating climate adaption in local governments' planning and budgeting- EcoBonds, seeking to emit bonds on a municipal level for investments contributing to resilience- Local Finance Initiative (LFI), which seeks to establish local development units within the central administration of Tanzania and Uganda, supporting local development investments- CleanStart, a program with the goal of providing 500 000 people with clean energy solutions through investmentsThe third component, an independent program that is hosted by UNCDF – Better than Cash Alliance (BtCA) – is an alliance of countries and multi-national companies active in the digitalisation of payments. The purpose of BtCA is to enable digital payment solutions in order to build an including digital economy that contributes to the SDGs.To exemplify UNCDF's work, in Bangladesh a UNCDF project developed models for participatory decision making on climate adaptive and resilient investments in local infrastructure. Successful pilot projects lead to the national government giving their support to the project, funding it and propelling the program to the degree that it was not possible for UNCDF to further house the project. As an example of BtCA's work the government of Ethiopia has requested the Alliance to support the development of the National Digital Payments Strategy in order to accelerate the government’s plans to digitize payments and the economy.Through these mechanisms, the final goal of the intervention is to create including, equal and resilient financial markets and local financial systems that are more efficient in their ability to strengthen poor people, SMEs and local governments in the least developed countries.