Paying For Results: A New Approach to Mobilizing Finance for Development (Event Resources)

  • Date Posted: December 17, 2015
  • Authors: Amanda Fernandez, Lawrence Camp, Theo Talbot, Adam Bornstein
  • Organizations: CARANA
  • Document Types: Tool, Other
  • Donor Type: Non-US Government Agency

What does a smallholder farmer looking to buy a $750 walking tractor and a multinational company looking to build a $500 million power generation plant in Africa share in common? They both need access to financing in order to make those investments. This month’s Microlinks seminar explores new ways to facilitate the flow of private capital to support development goals.

We discuss a working paper from the Center for Global Development on the effectiveness of different models for stimulating private capital. We also cover new innovations in Development Impact Bonds. Finally, we present a promising approach in Ghana using pay-for-performance incentives to stimulate loans and investment in agricultural value chains--with some eye-opening results.