UN Capital Development Fund (UNCDF)

The UN Capital Development Fund (UNCDF) is a hybrid development and finance organization established in 1966 by the UN General Assembly. It is autonomous yet affiliated with the UN Development Programme (UNDP).

UNCDF operates uniquely as the only UN entity that is non-credit-rated and has a capital investment mandate, allowing it to act effectively in high-risk markets such as:

• Least Developed Countries (LDCs)

• Small Island Developing States (SIDS)

• Fragile and conflict-affected states

Its core mission is to unlock public and private capital at the last mile—where resources are most difficult to reach and most needed.

What We Do

UNCDF provides blended finance and innovative capital solutions to:

• De-risk investment environments

• Mobilize private and domestic capital

• Drive inclusive, sustainable development

Key Activities:

• Catalytic Grant Capital: Uses grant funding to encourage investments where risk is high and returns are uncertain.

• Concessional Finance: Offers below-market-rate financing to improve investment viability and affordability.

• Blended Finance and Innovative Models: Leverages tools like social bonds, impact funds, and public-private partnerships.

• Market Creation: Builds viable markets in underfunded sectors (e.g., clean cooking, oceans, plastics).

• Domestic Capital Mobilization: Works with in-country UN systems and local partners to unlock domestic financial flows.

• Impact Measurement: Uses international standards to track, report, and assure development impact.

Our Impact

• UNCDF’s blended finance approach seeks to unlock $3–$5 of private capital for every $1 of grant capital.

• Focuses on transformative change in the world’s most underserved and vulnerable communities.

• Builds resilient local economies, enhances financial inclusion, and supports climate adaptation and gender equality.

Our Partners

UNCDF works with a range of actors including:

• UN Agencies

• National Governments

• Private Sector Investors

• Development Finance Institutions (DFIs)

• NGOs and Local Civil Society Organizations

• Multilateral Donors

These partnerships are essential to expanding reach, sharing risk, and scaling impact.

UNCDF has been active in Uganda since 1982, focusing on inclusive local development and financial innovation. Uganda hosts UNCDF’s largest in-country team globally. Key initiatives include:

• Development Initiative for Northern Uganda (DINU): A flagship program supporting infrastructure, local governance, and economic development in 40 districts, with a focus on 18 priority areas.

• Inclusive Digital Economies (IDE): Aiming to equip one million Ugandans with access to digital services by 2024, targeting underserved groups such as women, youth, refugees, and smallholder farmers.

  c/o UNDP
  Plot 11, Yusuf Lule Road, Nakasero
  P.O. Box 7184
  Kampala, Uganda
  📞 +256 417 112100

  📧 Key Contacts

  • Dmitry Pozhidaev – Head of Office / Regional Technical Advisor
    📧 dmitry.pozhidaev@uncdf.org

  • Chris Lukolyo – Digital Country Lead
    📧 chris.lukolyo@uncdf.org

  • Jennifer Bukokhe – Deputy Director (a.i.), Local Transformative Finance
    📧 jenifer.bukokhe@uncdf.org