The UN Capital Development Fund (UNCDF) secured new financial commitments for its Last Mile Finance Trust Fund dedicated to sustainable development, particularly in Low Income and Least Developed Countries.

The latest contribution of $5.45 million (SEK 60 million) from the Swedish International Development Cooperation (Sida) will help UNCDF continue to scale its efforts to drive increased financial flows to support countries in the development of their economies.

Some of these resources will support a review exercise of the Last Mile Trust Fund’s decade-long performance, informing its alignment with UNCDF’s upcoming Strategic Framework (2026-2029). This work will provide critical insight to elevate the Trust Fund as a model for high-impact, scalable development finance in the world’s most underserved regions.

UNCDF’s Last Mile Finance Trust Fund was launched in 2016 with $2.5 million from Sida. Pooling together flexible funding from across 10 donor countries, the Trust Fund deploys much-needed development financing in last mile markets.

UNCDF’s Last Mile Finance Trust Fund has now reached a total of $100 million since its inception, enabling crucial support to countries often seen as high-risk for investors. For example, in Tanzania, $1 million in technical assistance from the Trust Fund led the Tanga Urban Water Supply and Sanitation Authority to issue East Africa’s first subnational Green Bond, raising $20.8 million in local investment. This initiative improved water access for 26,000 people and addressed a 30% water supply gap. The bond, twice oversubscribed on the Dar es Salaam Stock Exchange, has since been cross-listed on the Luxembourg Stock Exchange.

"We deeply appreciate Sida's support to the Last Mile Finance Trust Fund, which enables UNCDF to effectively address the unique challenges faced by higher-risk countries, helping to expand our investment mandate, leverage donor contributions, and foster market development,” said Pradeep Kurukulasuriya, Executive Secretary of UNCDF.