DFID announces first Development Impact Bond
Justine Green, the Secretary of State for International Development, announced that the UK will launch its first ever Development Impact Bond, designed by Social Finance, to prevent sleeping sickness in Uganda.
An estimated 9 million people are at risk in the country but despite tried and tested prevention methods, previous investments were unable to deliver the scale of drugs needed to stop the disease.
Development Impact Bonds were pioneered by Social Finance and the Center for Global Development, through a working group co-chaired by Toby Eccles, co-founder of Social Finance, Owen Barder, Director for Europe for CGD and Elizabeth Littlefield, President and CEO of OPIC. DIBs are an adaptation of Social Impact Bonds, originated by Social Finance, which are an innovative way of financing public services that have garnered worldwide attention.
The main additional characteristic of Development Impact Bonds is that in countries whose governments cannot yet afford the full cost of additional public services, donors provide some or all of the repayment to investors when the results are proven.
More detail on this report can be found at: http://www.socialfinance.org.uk/sites/default/files/development_impact_bond_announcement_0.pdf
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