The Impact-Linked Finance Fund provides finance to high-impact enterprises and directly rewards these for positive outcomes generated through their business activities. It was established by Roots of Impact and iGravity in order to pool their know-how and activities for implementing scalable Impact-Linked Funds.

The overall objective of the Impact-Linked Fund for Eastern and Southern Africa (ILF ESA) is to enable high-impact enterprises to scale in both economic and impact terms. The ILFF supports them with two different impact-linked funding mechanisms: Social Impact Incentives – SIINC (time-limited financial rewards for achieving positive social outcomes) and Impact-Linked Loans (repayable loans whose financial cost is lowered by achieving pre- determined positive social outcomes). From an impact perspective, the aim is to help these enterprises strengthen their focus on impact, particularly in terms of serving vulnerable, low- income populations.

Getting access to capital is a challenge for these enterprises, though. This is why the Impact-Linked Fund for Education will provide suitable, in novative financing instruments in the form of Social Impact Incentivesand Impact-Linked Loans to high-impact organizations offering inclusive and equitable education for vulnerable children and youth in MENA and West Africa Region. In addition, a substantial amount of the fund’s target volume will be reserved for technical assistance, research and advocacy measures, which will further boost the effectiveness of this innovative approach.