This report presents the 2024 cumulative review of the Strategic Framework, 2022-2025, and the annual review of results achieved by UNCDF in 2024. It examines progress in three outcome areas:
- accelerated, inclusive, diversified, green economic transformation
- increased flows of public and private finance
- strengthened market systems and public and private financing mechanisms. An analysis of UNCDF institutional effectiveness and key evaluation findings is also presented.
2024 review of the Strategic Framework
By the end of 2024, UNCDF had positively impacted nearly 30 million individuals in the riskiest parts of the world during the Strategic Framework period (2022 to 2024).
This was made possible by a number of financial products and advisory services as well as local infrastructure-related investments designed to crowd-in capital to where it is needed most. The work focused on a range of interventions, including off-grid energy production, agriculture, fintech and digital services and municipal and other sub-national infrastructure development, with more than half a million MSMEs benefitting from UNCDF support, surpassing the targets established for the year’s end.
A key aim for UNCDF has been to increase the flows of public and private finance towards sustainable development, particularly in LDCs. In the first three years of the strategic framework, with limited core funding of less than $8 million per year, UNCDF catalysed an estimated $780 million in Sustainable Development Goal investments through blended finance funds, country-level initiatives and investment readiness support. This accomplishment underscores its crucial and underfunded catalytic role in bridging the financing gap in LDCs, SIDS and conflict-affected and fragile countries. The work also highlights the capacity of UNCDF to leverage financial flows to address critical global challenges, creating a lasting impact across sectors. UNCDF has supported more than 340 initiatives to become investment-ready, representing a combined value of $324,244,680. It operates in a space that is too large for microfinance, too small for traditional multilateral development banks/development finance institutions and desperate for scaled- up financing for job creation and market development. UNCDF supported the establishment of 57 financing mechanisms underpinned by private, public and blended finance models.
These mechanisms have been crucial in enhancing access to capital, promoting economic growth and ensuring sustainable financial solutions that address local market needs in a number of LDCs. By strengthening financial ecosystems and enabling market development, UNCDF continues to empower businesses, entrepreneurs and communities to secure the resources essential for long-term development and resilience. UNCDF continues to enhance its role within the United Nations system, engaging in numerous joint initiatives and mobilizing $128 million from United Nations pooled funds and partnerships over the last three years. By deploying its financing capabilities at scale in support of the United Nations system, in 2024 UNCDF amplified the development impact of organizations like UNDP, the United Nations Children’s Fund (UNICEF), UN-Women and the World Food Programme (WFP) globally.
A year in review: UNCDF achievements
In 2024, UNCDF supported sustainable financing initiatives in 78 countries, including almost all the LDCs (43 out of 44) and 21 fragile countries. It issued over $22.1 million in loans, guarantees and grants to public and private entities. These investments helped to support governments, communities and local businesses through the development of their local economies, creating thousands of jobs, strengthening livelihoods and enabling access to affordable finance. They accounted for approximately 26 per cent of the year’s disbursements.
Based on pipeline data, and the vision and mission of UNCDF, followed by the recent restructuring of UNCDF to regain its identity as a fund focusing on blended finance solutions, this trend is on track to continue and rapidly grow.
