Technical Assistance Facility Consultant

York New Salem, PENNSYLVANIA | 3 months | Deadline: 29 May 2019
This position has expired. Do not apply!

Job Summary

York New Salem

Job Description

UN Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 47 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through two channels: financial inclusion that expands the opportunities for individuals, households, and small businesses to participate in the local economy, providing them with the tools they need to climb out of poverty and manage their financial lives; and by showing how localized investments—through fiscal decentralization, innovative municipal finance, and structured project finance—can drive public and private funding that underpins local economic expansion and sustainable development. By strengthening how finance works for poor people at the household, small enterprise, and local infrastructure levels, UNCDF contributes to SDG 1 on eradicating poverty and SDG 17 on the means of implementation. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to a number of different Sustainable Development Goals (SDGs).

Approximately US$1.7 trillion flows from the developed world to the developing world from a diversified set of actors and with equally distinct motivations, ranging from purely philanthropic to market-rate return on investments. By being innovative in the way development assistance is deployed it can have the potential to extend the reach and effectiveness of the aid through for example the complementary deployment of private capital i.e. by blending public and private funds for enhanced development results. The development assistance then has the potential to expand the pool of foreign and domestic capital available for economic development for e.g. small and medium enterprises, projects, financial institutions and key public services.

Using its own balance sheet, UNCDF can deploy a combination of grants, reimbursable grants, loans, guarantees and/or technical assistance to support SMEs, including start-ups and early-stage businesses, project developers, financial services providers, and local governments and municipalities. Up till today, UNCDF’s use of loans and guarantees has been limited but there is presently an ambition to make increased use of these financial instruments, and accordingly, 2018 saw a steep increase in the issuance of loans and guarantees. UNCDF also intends to complement its own on-balance sheet investment activities by working through blended finance investment vehicles that are managed by third-party private fund managers. One of UNCDF’s strategic objectives is now to partner with a third-party fund manager to attract other types of capital to UNCDF’s pipeline of projects and provide an investment continuum for opportunities which are still not yet fully commercially investable but require larger tickets and offer higher risk-adjusted returns profile than those funded directly from UNCDF’s own balance sheet. The rationale for working through such blended finance vehicles is driven by UNCDF’s desire to connect the larger capital mobilization requirements of the SDGs to the most excluded and marginalized communities.

UNCDF is looking for a seasoned advisor to support its aforementioned objectives by designing Technical Assistance Support and possibly a specific Technical Assistance Facility (TAF) that would provide pre- and post-investment support to a pipeline of investment opportunities to be financed by the blended finance vehicle managed by a third-party fund manager. The purpose of the pre-investment support is to create the right enabling environment, impact design and investment readiness profile to help businesses or projects receive due consideration by the blended finance vehicle mentioned above. The purpose of the post-investment support is to help improve development outcomes and blended finance vehicle returns. By providing technical assistance to businesses, UNCDF aims to boost productivity, increase incomes and improve access to finance and markets across LDCs.

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