The Social Impact Bonds Bandwagon: Critical Reflections And Policy Implications For Africa

Abstract:Social impact bonds (SIBs) involve mobilising funding from private investors to finance social interventions by offering repayment of principal and agreed upon return once predetermined outcome metrics have been achieved. The article critically evaluates the potential viability of this new financing innovation for social interventions using evidence from global experiences, with the idea of further establishing the potential for application in Africa. The paper takes a qualitative and descriptive approach that relies heavily on secondary data from academic articles, and to some extent, grey literature. Informed from reviews of global experiences with SIBs, the paper argues that in Africa, SIBs can possibly establish their niche within the context of the chronic social problems, social financing challenges and persistent failure of social interventions. It concludes that while the application of the SIBs concept has produced rather mixed results, there is still potential for good social development results using this vehicle.