Impact-Linked Fund for Eastern and Southern Africa (ILF ESA)
Roots of Impact and its partner iGravity were looking for high-impact organizations in Eastern and Southern Africa that are preparing to raise investment to support 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 provide impact-linked funding to impact enterprises, thus enabling them to scale in both economic and impact terms. From an impact perspective, the aim is to help enterprises and local populations battle through the Covid-19 crisis and strengthen the enterprises’ 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 management perspective, the Impact-Linked Finance mechanisms provided through the fund will allow enterprises to strengthen and scale their business models and ensure 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.