The United Nations Capital Development Fund (UNCDF) Liaison Office in Brussels is a strategic presence in Brussels responsible for relations with the European Union institutions, including the European Commission and European Parliament, the European Investment Bank, the Organisation of the African Caribbean Pacific States (OACPS) and the government of Belgium.
Mobilizing and deploying capital for development in the least developed countries (LDCs) has never been more critical. The decade of action to achieve the Sustainable Development Goals began with an unprecedented health and socioeconomic crisis that may push up to 32 million more people living in LDCs back into extreme poverty.
The United Nations Capital Development Fund (UNCDF) is the United Nations’ flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.
UNCDF builds partnerships with other UN organizations, as well as private and public sector actors, to achieve greater impact in development, specifically by unlocking additional resources and strengthening financing mechanisms and systems contributing to transformation pathways, focusing on such development themes as green economy, digitalization, urbanization, inclusive economies, gender equality and women’s economic empowerment.
A hybrid development finance institution and development agency, UNCDF uses a combination of capital instruments (deployment, financial & business advisory and catalysation) and development instruments (technical assistance, capacity development, policy advice, advocacy, thought leadership, and market analysis and scoping) which are applied across five priority areas–inclusive digital economies; local transformative finance; women’s economic empowerment; climate, energy & biodiversity finance; and sustainable food systems finance.
The European Union is among the largest development partners of UNCDF, with more than €120 million in EU-supported programmes active at UNCDF in 2022. The two organizations share numerous focus areas, including green economies, digital innovation, and sustainable growth and jobs, laying the groundwork for extensive collaboration in programmes cutting across Africa, Asia, the Caribbean, and the Pacific. The relationship is guided by a Strategic Partnership Agreement signed in 2004. A Financial and Administrative Framework Agreement (FAFA), signed in 2003, provides the overarching framework governing specific contribution agreements.
UNCDF is also assessed for pillar six of the EU’s compliance framework for partner institutions, making it eligible to work with the EU on financial instruments, including blended finance and guarantees. It is the first UN organization to successfully access the EC’s flagship guarantee program, the European Fund for Sustainable Development Plus, which the EC sees as the cornerstone of its strategy to draw more private sector funds into development.
