LocationsUNDP and UNCDF advance collaboration with China Development Bank on blended finance for African private sector
April 29, 2026
Maxwell Gomera, Resident Representative of UNDP South Africa and Director of the Africa Sustainable Finance Hub, delivers remarks at the China-Africa Interbank Association Forum in Nairobi, highlighting the role of blended finance in unlocking scalable investment for African SMEs and advancing inclusive economic growth.
Nairobi, Kenya - 27 April 2026: The United Nations Development Programme (UNDP), United Nations Capital Development Fund (UNCDF), and China Development Bank (CDB) advanced their collaboration on innovative financing solutions to support small and medium-sized enterprises (SMEs) in Africa during the China-Africa Interbank Association Forum held in Nairobi, organized by CDB and the Trade and Development Bank Group (TDB).
Speaking at the Forum, Mr. Maxwell Gomera, Director of UNDP Africa Sustainable Finance Hub and Resident Representative of UNDP South Africa, highlighted the central role of SMEs in driving inclusive economic development across the continent. SMEs account for approximately 90 percent of registered businesses and generate a significant share of employment, particularly for youth and women, yet continue to face substantial barriers in accessing affordable and long-term finance. Strengthening SMEs’ access to capabilities, capital, and markets is essential to transforming them from largely invisible actors into visible, credible, and investable participants in the financial system.
To address these challenges, UNDP and UNCDF are engaging with CDB to pilot a blended finance platform aimed at unlocking scalable financing for African SMEs. The initiative will combine CDB’s large-scale capital with UNDP’s technical assistance and UNCDF’s catalytic capital and risk-sharing instruments to derisk early-stage transactions and strengthen SME pipelines, crowding in commercial finance and strengthening the capacity of African financial institutions to expand lending to underserved segments. The collaboration is designed as a demonstration platform to mobilize scaled financing for the private sector, with strong potential for replication across countries, sectors, and financial institutions in Africa.
“By working with China Development Bank and UNDP, UNCDF aims to reduce risks for lenders, support early-stage SME financing, and build models that attract more commercial investment to underserved businesses across Africa,” said Omon Ukpoma Olaiya, Regional Investment Team Lead, UNCDF.
During a bilateral meeting, UNDP-UNCDF and CDB reviewed progress on the proposed collaboration framework and ongoing technical work to structure pilot transactions. Both sides reaffirmed their commitment to advancing a tripartite Memorandum of Understanding (MoU) and to developing practical blended finance solutions for initial pilot implementations in African markets.
Mr. Wang Peng, Executive Vice President of CDB, noted, “We firmly believe that Africa is a continent with immense potential and the capacity to deliver remarkable development outcomes. China Development Bank is committed to working closely with UNDP and UNCDF to jointly design, pilot, and scale innovative financing mechanisms that can unlock sustainable growth for the private sector in Africa.”
Beyond this collaboration, UNDP and UNCDF partner to advance blended finance initiatives for African SMEs. These include solutions such as the Digital Innovation for Modernizing the Independent Economy (DIME) initiative and the Township Spark facility, a joint UNDP-UNCDF programme that enhances the bankability of township-based small businesses in South Africa through UNDP’s technical assistance and de-risks bank lending to these enterprises through UNCDF’s portfolio guarantee. In Kenya also, the Mitigation Action Facility programme supports the scale-up of solar-powered cold storage. UNCDF deploys blended finance instruments to derisk investments and crowd in private capital, while UNDP delivers technical assistance, policy support, and capacity building.
As Africa continues to pursue sustainable and equitable growth, partnerships that combine public and private finance will be critical to bridging the SME financing gap and accelerating progress toward the Sustainable Development Goals.