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Impact Investing - SIINC
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SDC
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Private sector engagement (PSE) is a priority for the Swiss Agency for Development and Cooperation (SDC), as highlighted in the federal dispatch 2021-2024. Within the universe of potential private sector partners, Social and Impact Enterprises (SIEs) – those enterprises with an intention to solve a social or environmental problem – are a natural ally for actors like SDC to achieve development outcomes. There are several reasons that make working with SIEs particularly interesting. There is an explicit alignment of vision and commitment to address a development challenge, when compared to other private sector partners. SIEs strive to be profitable and are sustainable beyond SDC support, when compared to not-for profit partners. They can therefore achieve high impact in a cost-effective way for SDC, since support is only supplemental and short-term. They can also promote highly innovative ways of achieving SDGs which can stimulate learning at SDC. That said, PSE overall and SDC working with SIEs in particular, is a relatively new way of achieving development outcomes. Challenges include: questions on how to find the right partner, the ideal governance for a partnership, the best financial instruments to support the SIE, and impact management. Partnerships with SIEs require careful design and agile implementation management. This guidance paper, the first of its kind, highlights some of these emerging issues. While the insights presented here do not constitute conclusive guidance on how to successfully engage SIEs, we discuss noteworthy findings and potential solutions
Relevant News
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16 Oct 2023
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23 Jan 2019
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07 Jul 2017
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22 Jun 2017
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30 Sep 2016
16 October 2023
Achieving Social Impacts in the Energy Access SectorKey Takeaways from EnDev’s Social Impact Incentives (SIINC) Off-Grid Energy Pilotfinanced by the Swiss Agency for Development and Cooperation (SDC)
EnDev is excited to share a lessons learnt report from the completed implementation of our recent pilot project in Kenya: an explicitly impact-oriented Results-based Financing (RBF) project. Piloting this so-called SIINC project in the field of energy access gives us insights and food for thought for the future of RBFs. Click here for the full news article & video. Social Impact Incentives (SIINC) was co-developed by the Swiss Agency for Development and Cooperation and Roots of Impact. It is a financial instrument that rewards enterprises for achieving social impact – instead of pure sales figures. The aim is thus to leverage funds to catalyse private investment in underserved markets to generate impact. Energising Development (EnDev) is a strategic partnership of likeminded donors and partners to support access to modern energy. The driving forces behind EnDev are Germany, the Netherlands, Norway and Switzerland.
23 January 2019
The OECD Report on Social Impact Investment mentions the SDC project "SIINC" as an innovative pay-for-success model and presents the case of Clinicas del Azucar, Mexico.This publication is a sequel to the OECD 2015 report on Social Impact Investment (SII), Building the Evidence Base, bringing new evidence on the role of SII in financing sustainable development. It depicts the state of play of SII approaches globally, comparing regional trends, and assesses its prospects, with a special focus on data issues and recent policy developments. Importantly, it provides new guidance for policy makers in OECD and non-OECD countries, as well as providers of development co-operation, development financers, social impact investment practitioners and the private sector more broadly, to help them maximise the contribution of social impact investing to the 2030 Agenda. In particular, it provides four sets of recommendations on financing, innovation, data and policy for delivering on the “impact imperative” of financing sustainable development.
07 July 2017
22 June 2017
We are excited to inform you about the first two successful Transactions with Social Impact Incentives (SIINC). The pioneers applying SIINC to raise investement and scale are Clinicas del Azucar in Mexico and Village Infrastructure in Honduras. SIINC are premium payments to high-Impact organisations based on verified social outcomes. In this way, Impact is incentivised directly: it becomes linked to the organisation's profitability and automatically makes it more attractive to Investors. For more Information, check out the Video or read the case studies about Clinicas del Azucar and Village Infrastructure Angels.
30 September 2016
The Aspen Network of Development Entrepreneurs (ANDE), in partnership with the Latin American Private Equity & Venture Capital Association (LAVCA), and LGT Impact Ventures has released a report on the growing landscape of impact investing in Latin America. Impact investing is a relatively nascent industry, and this report aims to fill the data gap in key Latin American markets. The report covers trends in regional impact investing with a focus on impact measurement, talent, and gender. It explores fundraising, deals, and exits, and takes a deep dive into impact investing in Brazil, Colombia, and Mexico. Click here to find the report in different languages.
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