Social Impact Bonds (SIBs) are an exciting innovation in results-based development financing. It’s particularly exciting in terms of how it might reshape how governments fund new approaches to stubborn social issues. The Development Impact Bonds Working Group over at the Center for Global Development recently released a report on SIBs in the context of international development. Elizabeth Littlefield, one of the co-chairs of that group says this about impact bonds:
Innovative financing mechanisms such as social impact bonds stand to improve the efficiency of development assistance in the coming years – and that is what has brought us to the working group. As a vital component of the impact investing sector, outcomes-based finance can be a powerful means of enhancing the effectiveness of aid and development finance.
The thing is, there is almost no one actually doing this in the developing world market. Almost no one. The one group I know of actually doing this in the field is Instiglio. Founded by a brilliant group of fellow Harvard MPA/ID graduates, Instiglio is working to use SIBs to improve social services in developing countries. I’ve met with several of the founders in Colombia where I was based for a few years and where they are working with local government to finance innovative approaches to school dropouts and adolescent pregnancy. I’m very impressed with them and their work.
This week, you have a chance to hear from them directly in an interactive Webinar. Instiglio co-founders Michael Eddy, Avnish Gungadurdoss, and Michael Belinsky will join the founder of the Impact Trust, Tamzin Ractliffe, for a Webinar on July 10 to discuss social impact bonds in developing world markets, particularly in Africa. Instiglio will draw upon its experience as a non-profit organisation with the goal of advancing Social Impact Bonds (SIBs) and results-based financing programs in international development. Instiglio’s extensive work to promote and design SIBs includes projects such advising the design of a $15-million investment facility alongside the Inter-American Development Bank that will support the creation of SIBs in Latin America; the design of a SIB in India around the education of girls and in Colombia around reduction of teen pregnancy; and defining the application of SIBs to healthcare in Southeast Asia for the World Health Organization.
The Impact Trust is a non-profit organisation dedicated to growing and maturing the impact investing ecosystem to realize innovative social and environmental solutions to developmental challenges.
The webinar session will introduce attendees to the concept of Social Impact Bonds, and address their power and potential in an African context. Non-profits, social enterprises and social service providers are particularly encouraged to attend.
The Webinar will take place on July 10 at 9 AM EST / 3 PM CEST. Register here.
Hope to see you there!