Employability Social Impact Bond Colombia

Colombia’s economic performance in the past years has been robust, but inequalities persist. More and better jobs especially for disadvantaged people is a key government priority, also in the context of the post-conflict process. The government has set up job programs, but results are mixed. A Social Impact Bond (SIB) could help to incentivize service providers of employability programs to attain better results. A SIB is a results-based contract that brings in socially-motivated investors who provide the initial capital to implement social programs. Governments only pay for achieved results, leaving providers more room for innovation.

The Program aims to provide better access and retention to formal jobs for disadvantaged people in Colombia through setting up 2-3 employability SIBs together with the government. Furthermore, the project will contribute to develop SIBs as an innovative development financing instrument by building local market capacity and know-how on the necessary skills and trainings needed to get a formal job. More broadly, it aims to increase the awareness and knowledge about SIBs for social programs in order to make them more effective and efficient.

Program partners are the Multilateral Investment Fund of the Interamerican Development Bank, the Colombian government (Prosperidad Social), foundations (Fundación Corona) and a technical advisor (Instiglio).

The objective is that Colombia has put in place 2-3 successful Social Impact Bonds (SIBs) in the area of employability, which aim at fostering labour market integration for disadvantaged people (youth, women, victims). A community of practice is established and market capacity, knowhow and awareness on SIBs are increased to facilitate replication and scale within and beyond Colombia.

Risultati principali attesi:  

2-3 SIBs are designed and set up with all relevant stakeholders. A SIB verification scheme is established.

Capacity building is conducted and outreach events are organized.

Knowledge is disseminated in Colombia and Latin America, including a case study on a SIBs and publicly available contract templates for SIBs.

Fase 1 01.10.2016 - 30.09.2021   (Completed)