Impact Investing: Will Your Business Pay for Success?
Pay for Success (PFS) is an innovative new funding mechanism that is used to finance social-benefit projects with high-quality impact metrics. PFS projects are popping up in every sector from homelessness, to healthcare, to education. New models prove that PFS projects can be used to stimulate investment in commodities, as well as workforce development. What impact will this have on the private sector? Will your business Pay for Success?
Peruvian Commodities:
The Common Fund for Commodities unveiled a Development Impact Bond (DIB) to modernize cocoa and coffee production in Peru’s Amazon region, the Ashaninka. This first standing commodity-sector DIB breaks into a new frontier of Pay for Success (PFS) possibility.
DIBs follow the main principles of PFS projects, but they feature a third-party end payer, rather than a government. In this case, the Common Fund for Commodities has agreed to repay the investor, the Schmidt Family Foundation, once pre-determined target … Read more