The UK is to launch it’s first development impact bond. Development impact bonds are an adaptation of social impact bonds. These are a type of payment-by-results agreement where investors put money into an organisation to pay for an intervention, and are repaid at a profit by funders if the intervention proves successful. The main difference with a development impact bond is that in countries whose governments cannot yet afford the full cost of additional public services, donors provide some or all of the repayment to investors when the results are proven.
International Development Secretary Justine Greening will launch the new bond to invest in the prevention of deadly sleeping sickness in Uganda – a £1.5m project to research and design a bond to purchase drugs to treat infected cattle before the disease spreads.