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The Power of Results-Based Funding for Poverty Alleviation: What We Learned from Africa’s First-Ever Development Impact Bond – and What’s Next
Development impact bonds (DIBs) are an innovative, results-based funding model with the potential to reduce poverty and make aid more effective. To assess their impact, a randomized controlled trial was conducted on Africa's first-ever DIB for poverty alleviation, which supported a poverty graduation program implemented by Village Enterprise. Dianne Calvi at Village Enterprise and Brian Boland at the Delta Fund (one of the nine philanthropic investors in the DIB) discuss the results of this study, what they mean for the sector, and how results-based funding can evolve to maximize its impact.
- Categories
- Entrepreneurship, Investing
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Optimizing Results-Based Financing for Off-Grid Energy: Why Localization Can Provide a Pathway to More Effective Investment
Leading investors across the energy access sector have embraced results-based financing (RBF) as a key mechanism to unlock private capital for small-scale solar and mini-grid businesses, and to advance the world toward universal electrification. But according to Audrey Desiderato at SunFunder and Martijn Veen at SNV, the remote design and management of RBF programs increases the risk that these funds will exclude local actors and innovation. They share findings from a recent white paper exploring the need for more localization in results-based financing for off-grid energy.
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Improving the Outcomes-Readiness of Implementors – A Key Step Towards Scaling Results-Based Financing
With less than a decade left to achieve the Sustainable Development Goals, the development financing gap has widened. According to Gagandeep Nanda at Dalberg and Dhun Davar and Sietse Wouters at UBS Optimus Foundation, results-based financing can provide a solution. But though organizations have high interest in participating in results-based financing, many are not ready to take on funding that is tied to outcomes instead of inputs and activities. They share five characteristics of effective outcomes-ready implementing organizations, and five ways these groups can be set up for success.
- Categories
- Impact Assessment, Investing
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