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Impact-Linked Fund for Eastern & Southern Africa

Impact-Linked Fund for Eastern and Southern Africa (ILFF 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 (ILFF 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 ILFF 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.

General criteria:

Scope

The enterprises must be operational for at least three years 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. In order to be eligible for SIINC, enterprises must be seeking a repayable investment (debt, equity, etc.) that is at minimum double of the SIINC amount (2:1 financial leverage). There are no leverage requirements for the Impact-Linked Loans.

Business model

Although there are no specific constraints regarding the legal form, the enterprises need to have a business model and generate revenues out of their activities.

Financial sustainability

The objective of the ILFF ESA program is to support enterprises which will continue to generate positive impact long after the SIINC payments or the Impact-Linked Loan have ended. Thus, the enterprises must have either already achieved financial sustainability, or must have a clear plan for achieving breakeven in the short to medium term.

Impact measurement

The support provided to the enterprises in this fund takes the form of time-bound outcomes-based payments, granted to incentivize positive social impact. In order to design a realistic payment schedule, it is necessary to have baseline data related to the impact generated by the enterprise. There should be a track record of systematically tracked and reported indicators that can act as a basis for structuring the SIINC payments or the Impact-Linked Loan.

Impact focus

Enterprises that target vulnerable populations will be of particular interest. Enterprises that do not have a specific impact focus are also eligible if they prove to be willing and able to deliver positive social outcomes.


Application details:

All relevant details to this call are included in our Application Leaflets. To study, please choose your preferred language.

Deadline: July 16th, 2021! The application period for this Impact-Linked Fund has ended. To stay up to date on future programs, please sign up for our newsletter.

Application Leaflet & Form in English:

Application Leaflet

Additional documents:

 

ILFF ESA Frequently Asked Questions

 

ILFF ESA Data Protection Policy

 

If you have questions around ILFF ESA, please check out the Frequently Asked Questions document above. For other questions, e.g. around your application status, please contact us at impact.ventures@igravity.net

Application Leaflet & Form in French:

Application Leaflet & Form

Application Leaflet & Form in Portuguese:

Application Leaflet & Form