Social Finance
International Development

International Development

What if you could invest in development?

Development Impact Bonds seek to improve the efficiency and effectiveness of development programmes. As with SIBs, investors provide external financing for interventions and will only receive a return if pre-agreed outcomes are achieved. Funds to remunerate investors come from donors, the budget of the host country, or a combination of the two and are commensurate with the level of success. This approach is intended to encourage innovation and adaptation needed to deliver successful outcomes.

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Investing in Social Outcomes: Development Impact Bonds 

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Development Impact Bond Consultation Report Launch

Impact

Rhino Impact Bond project

Escalating poaching in Africa and Asia is threatening to push rhino populations over a tipping point.  Poaching in Africa increased by 150% per annum over the last 5 years and could lead to declin..

Poaching in Africa increased by 150% per annum over the last 5 years

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The Challenge

Many countries are affected by poaching, with 3.2% of rhinos poached in South Africa, 2.2% in Kenya and 4.1% in Zimbabwe in 2012.  Threats are also rising in Asia, as demonstrated by the arrests of 700 wildlife criminals in Nepal in 2013. Effective rhino conservation requires strengthening of site-based protection globally. Global conservation of rhinos is important for both biodiversity and economic development.


The Opportunity

Social Finance is working with ZSL, the United Nations Development Programme and the United for Wildlife partners to create a Development Impact Bond focused on securing the long-term future of rhinos globally. The flexible and multi-year finance offered by an impact bond is ideal for slow breeding animals such as rhinos, where a reduction in poaching only manifests over 5 to 10 years. It will enable implementation of effective, integrated interventions that are rarely possible with most one-off, short-term grants.


The Impact

This project will create a roadmap to reducing poaching that will initially focus on rhinos, but in time will be applied to protect all high value species threatened by poaching. It will harness the power of private finance to drive a fundamental change in how we approach conservation.

“Impact Bonds stand to improve the efficiency of development assistance in the coming years“ Elizabeth Littlefield, president of overseas private investment corporation


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Impact

Sleeping Sickness in Uganda

Social Finance is in the process of developing a Development Impact Bond to reduce sleeping sickness in Uganda

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Sleeping sickness threatens 9 million people in Uganda

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The Challenge

East African sleeping sickness is an acute and often fatal illness. Uganda is the only country where both the East African and West African forms of sleeping sickness exist. There is a significant risk of overlap of the two strains within the next ten years, which has potentially serious health and cost implications since the two strains are difficult to differentiate clinically and a correct diagnosis is essential before treatment can begin.


The Intervention

Cattle are the main parasite reservoir for East African sleeping sickness in Uganda, which is then transmitted to humans via tsetse flies. Social Finance is designing a Development Impact Partnership to provide an initial mass treatment programme in order to substantially reduce the parasite prevalence in cattle in 50 at-risk districts. In parallel there will also be a focus on driving an increase in effective insecticide spraying in high risk areas to ensure longer-term control of reinfection.


The Impact

By controlling the parasite in cattle, the Development Impact Partnership aims to significantly reduce the incidence of East African sleeping sickness in the population of Uganda. Not only will this improve the life expectancy and productivity for those at risk of infection, it will also unlock substantial livestock gains in terms of improved health and productivity.


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