Funded by the Inter-American Development Bank, Social Finance partnered with Acrux Partners, Fundación Alimentaris and the law firm Beccar Varela to design and launch the first Social Impact Bond in Argentina. This project aims to achieve sustained employment for vulnerable youth in the South of Buenos Aires, one of the regions with the highest youth unemployment rates in Latin America.
Like many other large cities in Latin America, Buenos Aires faces significant employment challenges for its population. This lack of jobs and economic opportunities is more severe for young people than for the rest of the population. While the average unemployment rate is around 10%, some 22.8% of young men and women have no jobs, and many more work informally or under poor conditions.
We designed and launched a Social Impact Bond that aims to improve the economic outlook for young adults through skills training and support into employment. Core SIB outcomes comprise key milestones for its participants, such as secondary school completion, entry into a first job, and sustained employment for 4 and 12 months. To achieve these targets, SIB service providers provide a mix of soft and technical skills training and mentoring to help youth find and sustain a job, and work with employers to understand their demands and facilitate the integration of the young participants into their companies.