UNCDF is a multilateral organization (US$25M) that provides grants in Least Developed Countries in two areas of programming: local governance and microfinance. The primary objective of the IIA was to assess whether UNCDF was performing as an effective, efficient, and sustainable organization that has remained relevant in carrying out its mandate to reduce poverty in the Least Developed Countries (LDCs). The IIA analyzed the extent to which UNCDF, through its local development programmes and microfinance operations, was: a) contributing to alleviating poverty; b) having an impact on policy and demonstrating replication of its projects and approach by other agencies; c) whether programme results and institutions supported were sustainable; and d) whether UNCDF was positioning itself strategically in-country. The methodology drew on the Microfinance Programme Impact Assessment. It also included a quantitative and qualitative analysis of UNCDF’s portfolio, field visits in Benin, Madagascar and Tanzania, interviews with 250 respondents from 36 of the Least Developed Countries (LDCs), focus groups with UNCDF, and a report to the Executive Board.