The International Trade Centre (ITC) and the United Nations Capital Development Fund (UNCDF) have signed a new agreement to expand access to finance for small and medium-sized enterprises (SMEs), particularly those operating in developing markets.
Signed on the margins of the 81st session of the United Nations General Assembly (UNGA81), the agreement will bring together ITC’s expertise in trade and SME development with UNCDF’s experience in catalytic and concessional finance.
The partnership is expected to have a practical impact on SMEs across Africa. It will lay the foundation for a dedicated facility that will offer tailored financing, technical assistance, and policy and market expertise.
New Facility to Support SME Growth
The planned facility will help address some of the barriers that prevent small businesses from securing investment and expanding into new markets. It will allow public and development finance to be used to reduce investment risks and attract additional private capital to sectors with strong export and growth potential.
UNCDF Executive Secretary Pradeep Kurukulasuriya said the issue goes beyond simply making capital available. He said businesses also need conditions that allow finance to reach them.
“Too often, viable small businesses are perceived as too risky or too costly to finance,” Kurukulasuriya said. He added that working with ITC would allow the two organisations to strengthen SMEs’ ability to compete and access markets while addressing the risks that discourage investment.
The framework responds to priorities raised by governments at ITC’s inaugural Global SME Ministerial Meeting in Johannesburg in July 2025. Representatives from 60 countries identified better access to finance for SMEs as one of their shared priorities.
Combining Finance With Business Support
The partnership also recognises that finance alone may not be enough for SMEs to grow sustainably. Businesses often need market information, technical knowledge and stronger business skills to use investment effectively.
ITC Executive Director Pamela Coke-Hamilton said access to finance remains a major challenge for small businesses. She noted that entrepreneurs also need the knowledge and market intelligence required to make effective investment decisions.
“That’s what our new partnership with UNCDF is about, to help bridge the trade-finance gap, at scale, and build solutions that are more sustainable for small businesses,” Coke-Hamilton said.
ITC is the joint agency of the World Trade Organization and the United Nations. It supports SMEs in developing and transition economies to become more competitive in global markets.
UNCDF works to increase capital flows into high-risk markets, particularly Least Developed Countries, Small Island Developing States and countries in special situations. It operates in more than 70 countries and uses blended finance and risk-absorbing instruments to support job creation, economic growth and wider access to finance.
