Three of the largest funders in international development — USAID Development Innovation Ventures (DIV), UKAID (DFID), and an anonymous foundation – are providing outcome funding for the Village Enterprise Development Impact Bond (DIB).
Village Enterprise was selected from over 80 organizations to launch the first Development Impact Bond (DIB) for poverty alleviation in Africa.
This $5.26M DIB will allow Village Enterprise to further scale its Graduation program by launching an additional 4,600+ sustainable microenterprises over 2 years and positively impacting 13,800+ households in rural Kenya and Uganda.
Instiglio will perform the role of project manager and process evaluator, and Global Development Incubator (GDI) will act as the trustee of the Outcome Fund. Impact will be assessed through an RCT over the course of the DIB conducted by IDinsight.
DIBs are a new kind of funding mechanism to attract new sources of capital to solve global challenges. They differ from standard contracts for social programs by tying payments to clearly-defined and rigorously-measured outcomes.
The USAID DIV award to the Village Enterprise DIB was announced on September 28 as part of Global Innovation Week and highlighted in Devex’s lead article on Friday, New DIB brings in big donors, provides biggest test of model to date.