Uncdf in numbers

UNCDFIn numbers

87180_UNCDF_ENG_Rev1_1-20.pdf 1 6/14/13 7:56 AM

UNCDF’s work iN more thaN 40 CoUNtries is ChalleNgiNg, bUt its missioN is simple: to reduce poverty In the world’s least developed countrIes.

Over the last 20 years the proportion of people living in extreme poverty in developing regions has dropped from 46 to 27 per cent. Meanwhile, adult illiteracy has been halved to 25 percent; child mortality has dropped from 101 to 69 deaths per 1,000 live births; maternal health services have expanded in about 80% of countries; the global share of women in parliament continues to rise slowly; and 86 per cent of the population in developing regions have gained access to improved sources of drinking water.

And yet, over a billion people still struggle to survive on a dollar a day; 2.5 billion adults—more than a third of the world’s population—are excluded from the formal financial sector; public investment is inadequate and inefficient in many LDCs, especially in rural areas where most poor people still live.

UNCDF, the UN’s capital investment agency for the world’s 49 least developed countries, seeks to help those people by promoting financial inclusion and strengthening public finance for local development to improve infrastructure investment and delivery of basic services by local governments.

Today, UNCDF works in partnerships with governments, donors, UN systems, financial institutions, private foundations and academic institutions to help the world’s poorest countries build a better future.


1 missioN: to reDUCe poverty aND promote sUstaiNable, iNClUsive growth iN the worlD’s 49 least DevelopeD CoUNtries


SENEGAL

NIGER

BURKINA FASO

TIMOR LESTE

GHANA

CAMEROON

CENTRAL AFRICAN REP.

TOGO

SIERRA LEONE

LIBERIA

DEM. REPUBLIC OF CONGO

ZAMBIA

THAILAND

PHILIPPINES

LESOTHOVANATU

FIJI

MADAGASCAR

TANZANIA

PAPUA NEW GUINEA

BURUNDIRWANDA

MALAWI

MOZAMBIQUE

COMOROS

UGANDAKENYA

ETHIOPIA

LAO (PDR)

AFGHANISTAN

NEPAL

MYANMAR

BHUTAN

SOUTH SUDANCHAD

SAMOA

SOLOMON ISLANDS

2 WAYS UNCDF SUPPORTS THE WORLD’S POOREST COUNTRIES

BY STRENGTHENING FINANCIAL SECTORS AND MAKING THEM MORE INCLUSIVE

UNCDF’S WORK IN INCLUSIVE FINANCE

THE DESIGNATIONS EMPLOYED AND THE PRESENTATION OF MATERIAL ON ALL MAPS OF THIS BROCHURE DO NOT IMPLY THE EXPRESSION OF ANY OPINION WHATSOEVER ON THE PART OF UNCDF CONCERNING THE LEGAL STATUS OF ANY COUNTRY, TERRITORY, CITY OR AREA OR ITS AUTHORITIES, OR CONCERNING THE DELIMITATION OF ITS FRONTIERS OR BOUNDARIES.


INCLUSIVE FINANCIAL SECTOR PROGRAMMEMICROLEADYOUTHSTARTPFIP – PACIFIC FINANCIAL INCLUSION PROGRAMMEMICROINSURANCEREMITTANCESMAP (MAKING ACCESS POSSIBLE)CLEANSTART

BTCA – BETTER THAN CASH ALLIANCE (SIGNED COMMITMENT LETTERS WITH AFGHANISTAN, COLOMBIA, KENYA, MALAWI, PERU, PHILIPPINES)

MM4P – MOBILE MONEY FOR THE POOR

SENEGAL

NIGER

BURKINA FASO

TIMOR LESTE

GHANA

CAMEROON

CENTRAL AFRICAN REP.

TOGO

SIERRA LEONE

LIBERIA


ZAMBIA

THAILAND

PHILIPPINES

LESOTHOVANATU

FIJI

MADAGASCAR

TANZANIA

PAPUA NEW GUINEA

BURUNDIRWANDA

MALAWI

MOZAMBIQUE

COMOROS

UGANDAKENYA

ETHIOPIA

LAO (PDR)

AFGHANISTAN

NEPAL

MYANMAR

BHUTAN

SOUTH SUDANCHAD

SAMOA

SOLOMON ISLANDS

UNCDF’S WORK IN INCLUSIVE FINANCE


TIMOR LESTE

LESOTHO

ZAMBIA

CAMBODIA

ZIMBABWE

MOZAMBIQUE

MALAWI

TANZANIA

BURUNDIRWANDA

UGANDA

MYANMAR

ETHIOPIA

SOMALIA

YEMEN

DJIBOUTI

SOLOMON ISLANDS

SENEGAL

MALI

GUINEA

SIERRA LEONE

LIBERIA

IVORY COAST

BURKINA FASO

BENIN

NIGER


BANGLADESH

BHUTAN

LAO (PDR)

NEPAL

THE DESIGNATIONS EMPLOYED AND THE PRESENTATION OF MATERIAL ON ALL MAPS OF THIS BROCHURE DO NOT IMPLY THE EXPRESSION OF ANY OPINION WHATSOEVER ON THE PART OF UNCDF CONCERNING THE LEGAL STATUS OF ANY COUNTRY, TERRITORY, CITY OR AREA OR ITS AUTHORITIES, OR CONCERNING THE DELIMITATION OF ITS FRONTIERS OR BOUNDARIES.

UNCDF’S WORK IN LOCAL DEVELOPMENT FINANCE

AND IMPROVING PUBLIC FINANCE TO SUPPORT LOCAL DEVELOPMENT

2 WAYS UNCDF SUPPORTS THE WORLD’S POOREST COUNTRIES


LOCAL DEVELOPMENT FINANCECOUNTRY PROGRAMMEGELD – GENDER LOCAL DEVELOPMENT PROGRAMMELOCAL – LOCAL CLIMATE ADAPTIVE LIVING FACILITYLOBI – LOCAL CROSS-BORDER INITIATIVEINTERNATIONAL TRAINING PROGRAMMELOOKING – LOCALLY OWNED KNOWLEDGE= INSTITUTIONAL GROWTHLFI – LOCAL FINANCE INITIATIVE

TIMOR LESTE

LESOTHO

ZAMBIA

CAMBODIA

ZIMBABWE

MOZAMBIQUE

MALAWI

TANZANIA

BURUNDIRWANDA

UGANDA

MYANMAR

ETHIOPIA

SOMALIA

YEMEN

DJIBOUTI

SOLOMON ISLANDS

SENEGAL

MALI

GUINEA

SIERRA LEONE

LIBERIA

IVORY COAST

BURKINA FASO

BENIN

NIGER


BANGLADESH

BHUTAN

LAO (PDR)

NEPAL

UNCDF’S WORK IN LOCAL DEVELOPMENT FINANCE


Farmers from the Pobjika Valley in Bhutan cultivate potatoes as cash crops. Because of changing weather patterns and erratic rainfall, yields have been diminishing year by year. In Bhutan, UNCDF is piloting its new facility for investment in local level climate resilience, LoCAL. Under LoCAL, communities and their local governments jointly determine the most pressing climate adaptation needs and, through performance-based grants, implement activities to increase resilience.© UNCDF Bhutan/Riccardo D’Emidio


POLICYADVICE

TECHNICALSUPPORT

CATALYTICCAPITAL

CATALYTICCAPITAL

Transform capabilities for more effective and efficient basic

service delivery

Leverage local and external capital through initial

investments

Create enabling policy environments for microfinance

institutions and local governments

throUgh 1 programme approaCh


REGULARTOP CONTRIBUTIORS TO UNCDF IN 2012 / USD MILLIONS OTHER

TOGETHER WITH 36 DEVELOPMENT PARTNERS

0 2 4 6 8 10 12

CONTRIBUTORS TO UNCDF 2012 (as of December 31, 2012)(millions of United States dollars)

Non-CoreCore

SwedenThe Mastercard

FoundationOne UN

& Joint ProgrammesBelgium

European Commission

Norway

Luxembourg

Australia

UNDP

LIFT Myanmar

US

AustriaBill & Melinda

Gates FoundationVisa Inc.

Ford Foundation

Canada

IFAD

Cambodia

Liechtenstein

China

Andorra

Thailand


Through Digicel Pacific’s Mobile Money and Vodafone Fiji’s MPAiSA supported by UNCDF’s Pacific Financial Inclusion Programme (PFIP), mobile money services in the Pacific have registered over 450,000 clients across five countries. This means a shift from an insecure and costly cash benefit system to an electronic payment system that creates low cost savings services for very low-income clients, mostly women.© Photographer: Mereseini Senikau (UNCDF/UNDP)


WESTAND

CENTRALAFRICA

BENINBURKINA FASO

WEST AND CENTRAL AFRICA

CAMEROONCENTRAL AFRICAN REPUBLICGHANAGUINEAGUINEA-BISSAUIVORY COASTLIBERIAMALINIGERSENEGALSIERRA LEONETOGO

BURUNDICHAD

SOUTHERN AND EASTERN AFRICA

COMOROSDEMOCRATIC REPUBLIC OF CONGODJIBOUTIETHIOPIALESOTHOMADAGASCARMALAWIMOZAMBIQUERWANDASOMALIASOUTH SUDANTANZANIAUGANDAYEMEN

BANGLADESHBHUTAN

ASIA AND THE PACIFIC

CAMBODIAFIJILAO PDRMYANMARNEPALPAPUA NEW GUINEASAMOASOLOMON ISLANDSTHAILANDTIMOR LESTEVANUATU

LOCAL DEVELOPMENT FINANCE INCLUSIVE FINANCE

UNCDF implemeNts 70% oF its portFolio iN aFriCa, 30% iN asia aND paCiFiC, 50% iN post-Crisis CoUNtries


SOUTHERNAND

EASTERNAFRICA

ASIAAND

THE PACIFIC


iN 2012 UNCDF sUpporteD 455 loCal goverNmeNts aND 91 FiNaNCial serviCe proviDers, serviNg 8.43 millioN ClieNts

2005

2005

2005

2006

2006

2006

2007

2007

2007

2008

2008

2008

2009

2009

2009

20 1 0

20 1 0

20 1 0

2 0 1 1

2 0 1 1

2 0 1 1

2 0 1 2 *

2 0 1 2

2 0 1 2

number oF local Governments supported by uncdF proGrammes

1,000800600400200

number oF FInancIal servIce provIders supported by uncdF proGrammes

100

9

80604020

Improved access to FInancIal servIces (number oF actIve clIents) / in millions

87654321

* indicaTes ThaT The organizaTion is aT The end of a programming cycle and ThaT many of The programmes have now reached full scale up.


10 thiNgs worth kNowiNg aboUt UNCDF

1. uncdF Is structured more lIke a development bank than a tradItIonal un aGency UNCDF can issue loans and guarantees, as well as capital grants. It can provide technical assistance, policy advice and risk capital—separately, or in any combination—directly to the private sector or any level of government.

2. uncdF works In the world’s poorest countrIes UNCDF focuses on the least developed among the developing countries. It does this by increasing access of poor people and small businesses to microfinance and investment capital. 33% of UNCDF’s work is in West and Central Africa, 37% in Southern and Eastern Africa, 30% in Asia and the Pacific. 50% is in post-crisis countries.

3. uncdF helps local authorItIes delIver crItIcal servIces Public investment is inadequate and inefficient in many least developed countries, especially in rural areas where most poor people still live. UNCDF works to ensure that local capital investment—in schools, irrigation schemes roads, water supply—is sustainable, and responds to the needs of poor communities. UNCDF local development finance programmes strive to improve the capacity of local governments to plan, allocate and manage resources; and ensure that lessons learned at the local level are fed into national policies and can be replicated at scale.


4. uncdF Is one oF the world’s leaders In InclusIve FInance Today 2.5 billion adults—more than a half of the world’s working adults—are excluded from formal financial services. This is most acute among low-income populations in emerging and developing economies, where approximately 80% of poor people are excluded. UNCDF’s ability (unique in the United Nations system) to provide grants and loans directly to the private sector helps bring microfinance to underserved markets. UNCDF pursues an inclusive finance approach, which is designed to ensure that a range of financial products—savings, credit, insurance, payments, remittances—are available to all segments of society, at a reasonable cost and on a sustainable basis. Within a given least developed country, UNCDF begins with a sector assessment of opportunities and constraints at the macro-level (policy), meso-level (support infrastructure) and retail level (financial service provider). This assessment is combined with a gap analysis of areas not supported by other development partners. This leads to a tailored programme of support designed to seize opportunities, remove constraints and fill gaps to build an inclusive financial sector. In the 2011 SmartAid for Microfinance Index, UNCDF received the highest score amongst agencies participating in SmartAid 2009 and SmartAid 2011.

5. uncdF takes rIsks and Goes where others do not UNCDF is willing to support promising institutions (e.g. local governments in post-crisis countries) and innovative approaches (e.g. financial service delivery via mobile phones). UNCDF takes calculated risks early on, to reduce systemic risk—and risk perception—down the road. Along with its capital mandate, its flexible programming instruments and its ’appetite’ for risk, UNCDF’s in-house expertise is what makes UNCDF different. UNCDF is a recognized leader in supporting microfinance institutions and local governments, including in some of the most challenging environments (e.g. post-crisis and other fragile countries).


UNCDF’s MicroLead programme, an initiative supported by the Bill & Melinda Gates Foundation and The MasterCard Foundation, provides loans and grants to leading microfinance institutions on a competitive basis to facilitate their entry into world’s poorest countries where access to finance is most limited. In South Sudan a client of Finance South Sudan Limited, one of MicroLead’s grantees, has been able to increase his bread stock and income as a result of the loans advanced to him.© South Sudan Microfinance Development Facility/Jacob Kyallo


6. Global thematIc proGrammes are part oF uncdF’s new product development aGenda UNCDF delivers its support to financial services for the poor and public finance for local development via country programmes, tailored to the needs of individual countries; and global programmes, designed to complement UNCDF country programmes by promoting product and institutional innovations. Some of these programmes are operational and fully funded (e.g. MicroLead, a US$58.5 million initiative funded by the Bill & Melinda Gates Foundation, The MasterCard Foundation, LIFT Myanmar and UNCDF to increase access to financial services, particularly savings, by supporting the expansion of microfinance savings-led market leaders in underserved countries). Others are successful regional programmes that UNCDF is now looking to expand to a broader group of developing countries, such as MM4P—Mobile Money for the Poor, GELD+—Gender Equitable Local Development +, and YouthStart. Other global programmes have been developed more recently and are now entering the pilot stage (BTCA—Better Than Cash Alliance, LoCAL—Local Climate Adaptive Living Facility, LFI—Local Finance Initiative, MAP—Making Access to Financial Services Possible, CleanStart and LOBI—Local Cross-Border Initiative). Information on all UNCDF global programmes are available at http://www.uncdf.org/sites/default/files/Download/global_programmes_spread.pdf.

7. uncdF lIstens to the voIces oF the poor UNCDF is increasing support for programmes that directly impact people at the grassroots level. UNCDF follows a participatory process. It means UNCDF goes to stakeholders and talks to the people whom the programmes are meant to benefit. One example is its Local Development Fund (LDF). Community groups organize themselves, assess their own needs and write their own proposals for LDF funding.


6. Global thematIc proGrammes are part oF uncdF’s new product development aGenda

for local development via country programmes, tailored to the needs of individual countries; and global programmes, country programmes by promoting product and institutional innovations. Some of these programmes are operational and fully funded (e.g. MicroLead, a US$58.5 million initiative funded by the Bill & Melinda Gates Foundation, The MasterCard Foundation, LIFT Myanmar and UNCDF to increase access to financial services, particularly savings, by supporting the expansion of

successful regional programmes that UNCDF is now looking to expand to a broader group of developing countries, such as MM4PPoor, GELD+—Gender Equitable Local Development +, and YouthStart.

the pilot stage (BTCA—Better Than Cash Alliance, LoCAL—Local Climate Adaptive Living Facility, LFI—Local Finance Initiative, MAP—Making Access to Financial Services Possible, CleanStart and LOBI

org/sites/default/files/Download/global_programmes_spread.pdf.

7. uncdF lIstens to the voIces oF the poor

grassroots level. UNCDF follows a participatory process. to stakeholders and talks to the people whom the programmes are meant to

LDF funding.

8. uncdF works In partnershIp UNCDF believes that achieving the Millennium Development Goals (MDGs) is possible, but that no single actor can meet the MDGs alone. UNCDF works together with Programme Countries Governments, Donor Governments, UNDP and the UN system, International Financial Institutions, Private Foundations and Academic Institutions and brings its comparative advantage to where it will have the greatest impact across all the 8 MDGs.

9. uncdF belIeves In contInuous assessments and evaluatIons Reviews by outside bodies help us to remain sharp and relevant, which, in turn, helps us to build partnerships and achieve wider impact. The overall picture of recent independent assessments and evaluations is encouraging: UNCDF’s work in inclusive finance and local development finance is judged relevant to reducing poverty and achieving the Millennium Development Goals. And, for the most part, UNCDF is shown to be performing effectively. These are summarized in ’Assessing UNCDF’, available at www.uncdf.org/sites/default/files/Download/assessing_en_2011.pdf.

10. uncdF paves the way For others UNCDF’s capital assistance mandate, its focus on economic development and its ability to issue loans and guarantees as well as grants, make it unique in the UN system and a natural partner for larger financing institutions of the private sector. UNCDF targets underserved areas and pilots approaches for scaling up by others (e.g. World Bank, private sector). Its ’catalytic capital’ has helped to create some of today’s most successful national microfinance institutions, and has led to more effective decentralization and community investment in more than 40 LDCs. This makes UNCDF unique in the UN system and a natural partner for larger financing institutions of the private sector. In the words of a 2008 assessment of UNCDF by the Government of Sweden: “UNCDF should be seen as a development actor that paves the way for others.”


UN Capital Development Fund Two UN Plaza, New York, NY 10017 [email protected] / www.uncdf.org Tel: +1 212 906 6565 / Fax: +1 212 906 6479

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Creating New Opportunities in the World’s Poorest Countries

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