EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION.

With limited public funding available for socially and environmentally responsible programs, a variety of initiatives have been developed to attract private capital into sustainable development. Although still in their infancy, social impact bonds (SIBs) offer a promising outlook for sustained public-private partnerships. Social impact bonds are gaining momentum around the world. Also called “pay for success bonds” or “social benefit bonds,” SIBs are outcome-based contracts in which a commissioner (usually a public institution) agrees to pay private investors back if, and only if, pre-established social outcomes are reached. Co-Emergence has selected Kenya as the first country qualifying for a SIB. Using lessons from this first SIB, we plan to scale the approach to other parts of Kenya and other African countries, leveraging capital from impact investors.

Claire Champion is President of Co-Emergence.
Clemence von der Schulenburg is Finance Director of Co-Emergence.
Co-Emergence is a U.S. company whose mission is to nurture and scale market-driven solutions to increase access to high quality, affordable health and education services in emerging markets.