Innovative Financing Models
Impact bonds are an innovative financing tool that is result-based i.e. an investor-only pays the organization when an external agency proves that the implementation has been a success. Till February 1, 2021, 210 impact bonds across 35 countries have been contracted globally.
Mukti – TB and Nutrition Impact Bond
The Government of India (GOI) has pledged its commitment at the highest levels to eliminate Tuberculosis (TB) by 2025 and has launched a bold National Strategic Plan for TB elimination (NSP). Towards this end, ChildFund India is focusing our efforts to complement the government's priorities towards strengthening TB elimination efforts by accelerating the adoption of innovative financing instruments, such as Development Impact Bonds or Pay-for-Performance Instruments.
In 2019, ChildFund India, in collaboration with USAID and IPE Global, signed a Memorandum of Understanding (MoU) with the Department of Health and Family Welfare, National Health Mission (NHM), Government of Madhya Pradesh, to improve the nutrition status of Tuberculosis (TB) patients in the state of Madhya Pradesh.
The initiative focuses on improving the nutritional status and treatment success for TB patients through counseling at home, treatment adherence support, and a protein-rich food basket every month to improve the cure rate of TB patients. This innovative financing model is being implemented across 15 blocks in the Dhar district of Madhya Pradesh, benefitting 1,000 TB patients.
The project directly contributes to SDG 2 (Zero Hunger) and SDG 3 (Good Health and Well-Being)
Women Holistic Empowerment and Enhanced Livelihood (WHEEL)
ChildFund India, with the initial support of Grameen Impact Investments India, had launched the Women Holistic Empowerment and Enhanced Livelihood (WHEEL) impact bond –the world’s first domestically funded sustainable development goals bond (SDG bond) under the Grameen Outcome Accelerated Lending (GOAL) impact bond series.
The WHEEL impact bond worked towards helping marginalized tribal women in Maharashtra and Madhya Pradesh to become self‐reliant and empowered by training them to become poultry farmers (micro‐entrepreneurs), to enhance their average annual net income. In addition, the project also aimed to alleviate food insecurity and nutrition deficiency.
The project supported 1,000 beneficiaries with poultry, poultry feed, medicines, and building poultry sheds. Additionally, the beneficiaries received training on poultry farming and management and were linked to Poultry Producer Companies (PPC). We saw a significant increase in the income of the beneficiaries!
Based on the successful outcomes of the WHEEL Impact Bond, HSBC returned the initial investment of Grameen Impact Investments India. Furthermore, HSBC has now funded a 2-year-long WHEEL project which is targeting 2,000 tribal women in the same regions.
The project directly contributes to SDGs 1 (No Poverty), SDG 5 (Achieve gender equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities)