Project: Impact Bond to address Child Labour in the Cocoa Value Chain in Côte d’Ivoire
State of development: Current
Stage of development: Late stage
Stage notes: Late stage design
Type of instrument — Impact Bond: Yes; Outcomes Fund: No; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: No; Other: 
Part of a larger outcomes-based financing program: No 
Expected launch date: Q4 - 2022
Total expected project development time: TBD
Expected length of project (years): TBD
Project design process began: TBD
Rationale for using outcome-based finance: Innovation:
1. First ever impact bond targeting child labour reduction
2. Direct local sourcing/ engaging with community for sustainable (fresh) canteen supply - supplementing current government only canteen supply model while developing income generating activities for communities

Demonstration effect:
1. Proof of concept that sustainable/ community-based school feeding programmes can directly contribute to child labour reduction

Scalability:
1. The project is replicable on large scale in rural communities, maintaining the same principle of value creation while taking advantage of economies of scale 
2. Active involvement of government from the beginning increases government capacity and facilitates further scalability

Strong partnerships including with the Ministry of National Education, the national rural development agency, the ILO, International Cocoa Initiative and the World Food Programme, can facilitate the expansion of the project.
Role of the domestic government — Outcomes funder: No; Service provider: No; Member of project committee: No; No formal role: No; Other: TBD
Service providers identified and selected — Request-for-proposals: No; Direct contracting by outcome funder/investor/intermediary: No; Provider-led deal development: No; Other: TBD
Feasibility study: Yes
Proposed financing instruments — Debt: No; Equity: No; Guarantee: No; Grant: No; Other: TBD
Technical assistance grant: Yes — Funded by the Dutch government under a broader funding to the ILO on child labour elimination
Estimated maximum potential outcome payment: TBD TBD
Social/developmental challenge: Despite being the foremost cocoa producer, most cocoa farmers in Cote d'Ivoire are impoverished. 1.3 million children (aged 5-17) in cocoa-producing regions work in the cocoa sector. Despite several measures to combat child labour, progress to date remains modest. School feeding programs have shown limited but positive empirical evidence regarding reduction in child labour. The Cote d'Ivoire government has been facing challenges in implementing its national school-feeding programme. Current supply of school canteen by government covers only 18 school days out of 120 days in total. Challenges include insufficient budget to cover the operation of the project, food shortages in the canteens, irregular operation of the canteens, low community involvement, lack of staff to manage the canteens, ineffective model for the sustainability of the canteens, etc. Proposed project seeks to address these challenges by introducing sustainable, well-stocked canteens for all 120 school days.
Expected intervention model: The project aims to reduce child labour in cocoa producing regions in Cote d'Ivoire. The primary intervention includes establishing innovative and sustainable school feeding programme (canteen services) in primary schools. The objective is to raise USD 10-20 million to fund the establishment and functioning of 150- 250 school canteens in selected cocoa-growing regions. 
Expected results include:
1. Reducing child labour in cocoa growing regions in Cote d'Ivoire
2. Increase in school attendance rates contributing to better education outcomes for children and reduced time of children on fields
3. Establishing a sustainable community-based food supply model for school canteens
A cornerstone of the project involves procuring local produce directly from smallholder farmers within the communities, serving as a pivotal mechanism to fortify local economies and contribute to the long-term sustainability of the programme. The programme is designed in partnership with the government to ensure that it can be replicated on a larger scale by the government. The project represents a holistic approach to improving the lives of children, families and communities while testing a sustainable long-term solution.
Policy sectors — Employment and private sector development: Yes; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: No; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: No; Other: 
Secondary SDG goals: 8
Target population: Primary school children
Targeted number of unique service users or beneficiaries: 10000-50000
Unit type of targeted beneficiaries: Individual
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: Yes; Upper-middle-income: No; High-income: No
Beneficiary notes: Three target numbers based on Impact Bond size (10,000/25,000/50,000 children)
Notes: Data for this project was last updated by stakeholders in Feb 2024.
Delivery location: Côte d’Ivoire