Great news on the first SIB in South Africa alongside more incremental evidence of progress towards a responsible third sector using PFS mechanisms in the UK…
South Africa Is First Middle-Income Country To Fund Impact Bonds For Early Childhood Development
Sophie Gardiner & Emily Gustafsson-Wright – Brookings
March 18 was an historic day for early childhood development (ECD) financing—the Departments of Social Development and Health of the Western Cape province of South Africa committed 25 million rand ($1.62 million) in outcome funding for three social impact bonds (SIBs) for maternal and early childhood outcomes. This is the first ever funding committed by a middle-income government for a SIB—to date no low-income country governments have participated in a SIB either—making South Africa’s choice to pioneer this new path especially exciting.
Devolution ‘Could Herald Expansion Of Early Intervention Approaches’
Richard Johnstone – Public Finance
Devolution could free local authorities to develop early intervention and prevention services that make greater use of social investment, a senior third sector figure has told Public Finance.
Cliff Prior, chief executive at Big Society Capital, which works to boost investment in charities and social enterprises, said greater power for councils could break down silos that can hinder joined-up social interventions.
A report published by BSC last month found the social investment market in the UK was worth at least £1.5bn, and Prior said there was growing use of approaches such as social impact bonds to help charities take up contracts with local authorities to tackle social problems.
In total, 31 SIBs (where investors get repaid once the interventions have been successful) have been issued in the UK across areas such as homelessness, looked-after children, social isolation and supporting people with long-term conditions.
Speaking to PF just four weeks after taking up the post at BSC, Prior said these had shown “particularly good potential” to protect against harm that would otherwise cost the public sector more in the future.