United Nations Capital Development Fund launches Microfinance Fund for Least Developed Countries

NEW YORK — The United Nations Capital Development Fund (UNCDF) is launching MicroLead – a USD 26 million fund for developing savings-led market leaders for Inclusive Finance in the Least Developed Countries (LDCs), partially funded by a grant from the Bill & Melinda Gates Foundation.

Leading microfinance institutions and other financial service providers (MFIs/FSPs) from developing countries are showing an increasing interest in expanding their operations regionally and globally. Based on proven business models these MFIs/FSPs market leaders have shown they can rapidly scale-up their operations in new countries and offer a variety of products and services to a large number of poor families and small firms. Their entry into new markets also inspires domestic MFIs/FSPs to improve their business practices resulting in an overall acceleration of access to financial services. While acting as an excellent example of South-South cooperation, at present most of these MFI/FSP market leaders are focusing their expansion primarily on non-LDC large market countries. LDCs, particularly the poorest and post-conflict LDCs, remain underserviced.

To read the full press release, visit the UNCDF web site.