UNCDF on how investment finance can help unlock growth in Africa

The United Nations Capital Development Fund (UNCDF) is working tirelessly to drive growth and development in Africa through investment finance. Established in 1966, UNCDF focuses on channeling both public and private capital to the 46 least developed countries, 33 of which are in Africa. In a recent interview with CNBC Africa, Preeti Sinha, the Executive Secretary of UNCDF, shed light on the organization's mission and ongoing projects on the continent. UNCDF's key areas of focus in Africa include digital solutions and municipal infrastructure. In the wake of the COVID-19 pandemic, UNCDF has stepped up its efforts to support communities and governments in Africa. Sinha highlighted the organization's role in providing credit guarantees to banks to facilitate lending to women-owned SMEs, as well as offering local emergency grants to municipalities for essential services. Despite the challenges posed by the pandemic, UNCDF has expanded its reach and impact, reaching millions of individuals across various African countries. One of the unique aspects of UNCDF's work is its emphasis on blended finance, where it collaborates with partners to leverage capital and maximize impact. Sinha discussed two significant blended funds - the Build Fund and the International Municipal Investment Fund, aimed at investing in SMEs and municipal projects, respectively. Through strategic partnerships with entities like Meridium and Bamboo Capital, UNCDF is able to catalyze investments and unlock financial resources for development projects in Africa. UNCDF's commitment to gender equality and empowerment was also evident in its collaboration with Senegal's sovereign wealth fund to create a Women's Economic Empowerment Fund. By leveraging domestic capital and fostering partnerships, UNCDF is supporting women entrepreneurs and promoting inclusive growth in Africa. In driving its mission forward, UNCDF actively engages with the private sector to reduce risk perceptions and attract investment. Sinha highlighted initiatives such as global roadshows and intermediary structures to connect institutional investors with impact funds like UNCDF. By bridging the gap between pension funds and SMEs, UNCDF is creating pathways for sustainable investment and economic development. Looking ahead, UNCDF continues to seek partners and collaborators to advance its projects in Africa. Sinha emphasized the importance of working closely with countries to identify priorities and implement strategic investments that drive growth and resilience. Through its dedication to financial inclusion, digital innovation, and sustainable development, UNCDF is paving the way for a brighter future in Africa. As Africa navigates the complexities of economic recovery post-COVID-19, organizations like UNCDF play a crucial role in unlocking untapped potential and fostering inclusive development. With a focus on leveraging investment finance and fostering partnerships, UNCDF is poised to make a lasting impact on the continent's growth trajectory.