2006 Annual Report

UNCDF: Small investments deliver big returns for the LDCs

Through local development and microfinance programmes, the UN Capital Development Fund (UNCDF) helps reduce poverty in the least developed countries (LDCs).

UNCDF, in partnership with UNDP, helps develop the capacity of local governments to invest in infrastructure and services for the poor. In 2005, UNCDF supported Local Development Programmes and Local Development Funds in 23 LDCs. In collaboration with local governments and communities, nearly 3,000 investment projects (including markets, roads, health clinics, schools, wells and small-scale irrigation) were carried out, benefiting around 4 million people. In 18 LDCs, women’s groups and associations received funds for implementing projects focusing on income-generating activities.

In 2005, UNCDF strengthened its focus on building financial sectors that include microfinance and ensure that the poor have sustainable access to financial services. Two new inclusive finance programmes were launched, with six countries now applying UNCDF’s financial sector development approach. Microfinance institutions currently supported by UNCDF provided financial services to more than 400,000 clients, almost half of them women. Moreover, UNCDF coordinated the programme of activities for the 2005 International Year of Microcredit in close collaboration with the UN Department of Economic and Social Affairs and UNDP. This initiative helped raise public awareness about microfinance and promote innovative partnerships among governments, donors, the private sector, NGOs and microfinance clients.

For more information on the UNCDF, please visit www.uncdf.org.