Refugee Impact Bond
The Refugee Impact Bond is a Development Impact Bond (DIB) aimed at supporting refugees and vulnerable host communities in Jordan. The initiative focuses on providing vocational, entrepreneurship, and resilience-building programs to improve the livelihoods of refugees and local populations. The program is designed to transition from short-term humanitarian aid to a long-term development approach, addressing the Syrian refugee crisis by fostering economic self-reliance and resilience. The bond involves a results-based financing model where payments to investors are contingent upon achieving specific outcomes, such as business survival and improved household spending on basic needs.
The initiative is financed by private investors, including the U.S. International Development Finance Corporation and Ferd, who provide upfront capital for the program. The IKEA Foundation, Novo Nordisk Foundation, and Norad act as outcome funders, reimbursing investors based on the programs success. The Near East Foundation UK (NEF) implements the program in collaboration with local organizations, targeting over 5,000 individuals, primarily women, to enhance their economic well-being and self-reliance.
Pros
Encourages innovation and flexibility in program delivery by allowing NEF to adapt strategies to achieve desired outcomes.
Attracts private capital to support sustainable development initiatives in refugee contexts.
Focuses on long-term impact by improving livelihoods and economic self-reliance among refugees and host communities.
Cons
Risk of not achieving outcomes may lead to financial losses for investors
Complex coordination among multiple stakeholders can pose challenges in program implementation
Partners
IKEA Foundation
Novo Nordisk Foundation
Norad (Norwegian Agency for Development Cooperation)
U.S. International Development Finance Corporation (DFC)
Ferd
Near East Foundation UK
KOIS