As part of its mission to drive positive change, The British International Investment (BII), the renowned UK development finance institution and impact investor, has opted to invest $10 million in the SDG Outcomes Fund, alongside the US International Development Finance Corporation (DFC).
With a targeted focus on lower and middle-income countries, including Africa and South Asia, the DFIs are championing the world’s first-ever fund solely designed for development impact bonds.
The initiative’s primary focus lies in essential healthcare, education, employment, child protection, and environmental objectives, all geared towards improving the well-being and livelihoods of some of the most vulnerable communities worldwide.
BII, known for its leadership in impact investing, sets a new precedent by penetrating world of development impact bonds for the first time.
With a laser focus on challenging sectors and marginalized communities, the fund seeks to pave way for the deployment of innovative financial instruments that can hasten progress in tackling key development challenges across the continent.
With West Africa as its starting point, SDG Outcomes has made initial investments, providing essential upfront capital to facilitate the provision of education and environmental services.
The fund’s vision goes beyond borders, aspiring to invest more extensively throughout Africa and South Asia.
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BII’s commitment to sustainability in Nigeria is seen through its support for Wecyclers, a trailblazing social enterprise using a franchise model to tackle plastic waste collection, resale, and recycling.
Wecyclers’ goal is to amass over 30,000 tonnes of plastic waste in five years to help in the creation of over 700 jobs through franchises, and facilitate positive change for waste sorters across Nigeria.
Mila Lukic, CEO of Bridges Outcomes Partnerships said, ‘We’re hugely excited by the potential of SDG Outcomes to improve lives at scale and, over time, to transform the way in which development projects are designed and delivered. Around 600 million young people globally lack numeracy and literacy skills;
‘…millions more are suffering from the effects of plastics pollution. We are pleased that SDG Outcomes’ first projects are helping to address these challenges through innovative, outcomes-based partnerships.’
Maya Ziswiler, CEO of the UBS Optimus Foundation, added, ‘The SDG Outcomes initiative is one of the first of its kind to provide the scale so desperately needed to provide real impact. By creating an investible solution.’
‘…we can help our clients and partners to mobilise all forms of capital – from philanthropic, through to public and private investors motivated by both financial and non-financial returns on their investments. We are excited to be bringing this landmark initiative to market.’
Andrew Mitchell, UK’s Minister for Development and Africa, commented, said, ‘This commitment will support sustainable development projects in developing countries, particularly in Africa and South Asia, giving some of the world’s most vulnerable communities the means to provide local solutions to local problems.’
‘Not only will Development Impact Bonds improve healthcare, education, and child protection, they will also support economic growth and climate action, giving a much-needed boost to the UN’s Sustainable Development Goals.’
Sara Taylor, director and head of PE Funds and Co-Investments at British International Investment said, ‘We are very excited to be working alongside high calibre partners and scaling an innovative and flexible financial mechanism that centres on delivering impact.’
‘The first projects in West Africa are well-aligned with our mission to provide patient capital to create productive, sustainable and inclusive economies and mobilise private investment capital to support communities in Africa and South Asia that are a priority for BII.’
Through the collective efforts of BII, SDG Outcomes, and its partners, this groundbreaking initiative is poised to make a lasting mark in the pursuit of global development and the UN’s Sustainable Development Goals.