MICROCAPITAL BRIEF: UNCDF Announces Funding, Guarantees, Technical Assistance for Enterprises Reducing Environmental Impacts of Agriculture, Energy, Forestry in DRC

The UN Capital Development Fund (UNCDF) recently launched two new funding instruments to provide financial and technical assistance for enterprises that help address deforestation in Democratic Republic of Congo (DRC), where 95 percent of households rely on wood for cooking. One instrument, Investments Aimed at Quantifiably Reducing the Consumption of Wood Energy in DRC, offers technical assistance and grants valued at USD 50,000 to USD 150,000 to enterprises seeking to devise, implement or improve alternatives to cutting down trees at recent rates, such cookstoves that burn wood more efficiently or run on liquefied petroleum gas (LPG). The other instrument, Catalytic Loans and Guarantees for Clean Energy, Sustainable Agriculture & Forestry Solutions in DRC, offers funding and guarantees in amounts ranging from USD 100,000 to USD 1 million and semi-commercial investment via the Bamboo-UNCDF Initiative for the Least Developed (BUILD) fund in amounts of USD 250,000 to USD 2.5 million. The purpose of BUILD is to attract commercial funding to sectors such as food security, financial inclusion and renewable energy, with a significant portion supporting entrepreneurs who are female, young or both.

Founded in 2007, Luxembourg-based Bamboo Capital deploys investments intended to “generate lasting impact and improve the lives of the world’s most marginalised communities while delivering strong financial returns” in four main sectors: access to clean energy, access to healthcare, agribusiness and financial inclusion. Since its launch, the firm has raised around USD 400 million for investments in approximately 30 countries.

Established in 1966 and headquartered in the US city of New York, UNCDF endeavours to create opportunities for poor people and their businesses by increasing access to microfinance and other forms of investment capital. The organisation operates in 46 low-income countries in Africa, Asia and the Pacific with a particular focus on countries emerging from crises. In 2021, UNCDF reported total donor contributions of USD 138 million.

By Saulius Simonas Ramanauskas, Research Associate

Sources and Additional Resources

UNCDF press release
https://www.uncdf.org/article/7884/2-new-funding-instruments-for-clean-cooking-solutions-in-the-drc

UNCDF homepage
https://www.uncdf.org

“Reducing the Consumption of Wood” funding stream description
https://www.uncdf.org/article/7853/rfa-investments-reducing-the-consumption-of-wood-energy-drc

“Loans and Guarantees for Clean Energy, Sustainable Agriculture & Forestry” funding stream description
https://www.uncdf.org/article/7849/eoi-catalytic-loans-and-guarantees-for-clean-energy-sustainable-agriculture-forestry-solutions-drc

BUILD description
https://s.tiled.co/1HdPVv5/the-build-fund

Bamboo Finance homepage
https://bamboocp.com

Previous MicroCapital brief on UNCDF and Bamboo Finance
https://www.microcapital.org/microcapital-brief-public-sector-commits-61m-to-smes-via-bamboo-uncdf-initiative-for-the-least-developed-build-fund

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