Why a Last Mile Finance Trust Fund
In line with the Addis Ababa Action Agenda and Agenda 2030, mobilizing public and private resources will be important to support structural transformation and Least Developed Countries (LDCs) graduation. To ensure that growth is equitable and sustainable, leaving no one behind, it is important that finance flows to the “last mile” - at the sub-national, peri-urban, household, and small enterprise levels, where development needs are greatest and where resources are most scarce.
UNCDF, as an international support measure for LDCs, leverages its decades-long experience in local development finance and financial inclusion to address a range of “last mile” development challenges. UNCDF innovates those financing models that demonstrate how public resources – such as ODA - can de-risk the local economic space and crowd-in roughly ten times as much in public and private resources, especially from domestic sources. These models have been shown to be highly relevant to LDC development agendas, and to catalyse impressive results.
Through this Trust Fund we are building a multi-partner commitment to bring innovative finance solutions to the maximum number of LDCs as they pursue achievement of the SDGs and their graduation targets.
The new trust fund builds on the successful four-year experience with the Partnership Framework for Global Initiatives for Inclusive Growth and Sustainable Development (PFIS) 2012-2015, supported by the Swedish Agency for International Development (Sida), the Norwegian Agency for Development Cooperation (Norad) and the Austrian Development Agency (ADA).