Social Finance
International Development

International Development

Bringing new rigour to results-based financing

We work with donors and governments to design more effective and cost-efficient outcomes-based contracts.

This involves bringing together governments, donors, service providers and investors to design and deliver investment-backed outcomes-based programmes. We raise private investment, which bears the risk around whether outcomes are achieved. The involvement of external risk capital allows for more adaptive service delivery that responds to varied and changing local needs.

Our work spans a range of geographies including sub-Saharan Africa, South Asia, North Africa and the Middle East.  Clients include the World Bank, DFID, USAID, Grand Challenges Canada and the Global Fund.

We are known for our work on Development Impact Bonds. To learn more, see this presentation or briefing note.

To learn more about the services we provide, click here.

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Building a market for global education

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Investing in Social Outcomes: Development Impact Bonds 

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Introduction to Development Impact Bonds for USAID

Impact

Education Outcomes Fund

Social Finance is developing an Education Outcomes Fund to increase the availability and affordability of quality education across the world.

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The Challenge

There is a disconnect between global education spending and learning outcomes. Despite billions spent annually, millions of children remain out of school and millions more leave school without the basic skills that would enable them to improve their lives and benefit their countries’ economies.  The absence of clear links between spending and results leads to underinvestment in education which will make the Global Goal of quality education for all hard to reach.


The Opportunity

An Education Outcomes Fund – supported by philanthropists, governments and donors – could have a game-changing impact on the availability and affordability of quality education across the world.  It would pool funding to pay non-government education providers for improved education outcomes for priority populations in low and middle income countries. It would also seek to stimulate investment for providers who need pre-financing to participate. By providing a monetary payment for success, but not prescribing how that success is achieved, the Fund could stimulate innovation to enable the education of the world’s poorest children.


The Impact

We are working with the International Commission on Financing Global Education Opportunity and the Global Social Impact Investment Steering Group to develop a detailed plan for the structure, management and launch of an Education Outcomes Fund. A Fund implemented at scale would create a market of providers and investors to ensure equitable and quality education to the world’s poorest children and young people.  Social Finance is seeking partners who share our vision of harnessing the power of private sector capital, innovation and efficiency to deliver quality education.

 

To learn more, take a look at our Education Outcomes Fund Briefing Note

 


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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


Partners

Partners

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Impact

Sleeping Sickness in Uganda

Social Finance has designed 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 between the two strains within the next ten years, which would have 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 parasite that causes East African sleeping sickness in humans also has a significant impact on cattle health and productivity. This affects farmers’ incomes and livelihoods, restricting household income and socio-economic development in south-eastern and northern Uganda.


The Intervention

Cattle are the main parasite reservoir for East African sleeping sickness in Uganda, which is then transmitted to people via tsetse flies. Social Finance has designed a Development Impact Bond 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 is a focus on driving an increase in effective insecticide spraying by farmers in high risk areas to ensure longer-term control of reinfection.


The Impact

By controlling the parasite in cattle, a Development Impact Bond would 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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