Impact-Linked Fund for Eastern and Southern Africa (ILF ESA)
ILF ESA focuses on high-impact organizations in Eastern and Southern Africa preparing to raise investment. The Fund 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).
The overall objective of the Impact-Linked Fund for Eastern and Southern Africa (ILF ESA) is to enable impact enterprises to scale in both economic and impact terms. 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. The Fund is targeting enterprises operating in Eastern and Southern Africa, with a preference for one or more of the following: Tanzania, Mozambique, Uganda, and the Democratic Republic of Congo. The target sectors are Health (including nutrition and basic services), WASH (Water, Sanitation and Hygiene), sustainable agriculture and food security, and income and employment. From a business perspective, the Impact-Linked Finance mechanisms provided through the Fund will allow enterprises to scale their business models and ensure that they continue to be or become economically viable and profitable over time.
iGravity and Roots of Impact are the managers of ILF ESA, responsible for pre-selecting enterprises and structuring terms. This initiative is sponsored by the Swiss Agency for Development and Cooperation (SDC) and the Medicor Foundation. With the second close of ILF ESA, SwissRe Foundation, FourFold Foundation and Aqua for All have joined the sponsor group.