Development Impact Bond

A Development Impact Bond (DIB) is a financial agreement where private investors fund a social project, such as improving health or education. If the project achieves predetermined results, a funder, often a government or organization, repays the investors with interest. If the goals aren’t met, investors typically do not receive repayment, sharing the risk. This approach encourages innovative solutions by linking funding to actual outcomes, making development efforts more efficient and accountable. Essentially, DIBs turn social impact into an investable opportunity, aligning financial incentives with positive societal change.