Investment of $100 Million for a Blended Finance Fund Centered on United Nations Sustainable Development Goals by UBS
The SDG Outcomes Fund, a pioneering initiative in blended finance, has successfully raised its initial target of $100 million. Operating under a partnership between UBS Optimus Foundation and Bridges, the fund focuses on outcomes-based financing programs in low- and middle-income countries.
The European Investment Bank (EIB) made an $18 million anchor commitment to the fund, with the European Commission providing the funding via the ACP Trust Fund. This commitment has enabled the SDG Outcomes Fund to mobilise an additional $100 million, with contributions from other global development finance players, including the US International Development Finance Corporation, British International Investment, and private investors.
The fund has disbursed nearly USD 13.5 million in verified outcome payments, benefiting hundreds of thousands of people in low- and middle-income countries, specifically targeting programs in health, education, women's economic empowerment, and environmental protection.
The payments incentivise the delivery of concrete results rather than just funding activities, creating a scalable, results-driven impact investing model focused on sustainable development goals (SDGs). The fund targets projects primarily across Africa and Asia.
One notable example of impact in Africa is the SDG Eurobond in Benin, which showcases impactful results in education, access to education, and health and water access. For instance, access to government school meal programs nearly doubled from approximately 660,000 children in 2021 to over 1.2 million in 2023, helping improve nutrition and school attendance.
The SDG Outcomes Fund uses a pay-per-outcome finance model, where funds are released only upon independent verification of results, ensuring that investments translate into real-world benefits. It applies advanced impact measurement techniques with clear, data-driven metrics, often verified by third parties like the United Nations Development Programme, ensuring transparency and accountability.
The fund's focus areas include health, education, women's economic empowerment, and the environment. By bringing together a range of partners and adjusting programs based on data, they can achieve better outcomes for individuals and better value for funders.
In conclusion, the SDG Outcomes Fund exemplifies a scalable and transparent approach to advancing the SDGs by ensuring investments yield measurable improvements for vulnerable populations in emerging economies. The fund aims to accelerate progress towards the UN Sustainable Development Goals (SGDs) by delivering tangible impacts in health, education, and climate action.
- The SDG Outcomes Fund, with its focus on environmental protection, aims to accelerate progress towards the UN Sustainable Development Goals (SDGs) by delivering tangible impacts in climate action.
- The European Investment Bank (EIB) and other global development finance players, such as the US International Development Finance Corporation and British International Investment, have contributed to the SDG Outcomes Fund, which primarily targets projects in environmental science.
- The pay-per-outcome finance model of the SDG Outcomes Fund ensures that investments in environmental protection translate into real-world benefits, utilizing advanced technology for impact measurement to ensure transparency and accountability.
