Project: Program for Results-Oriented Socio-Economic Progress and Economic Resilience  (PROSPER)
State of development: Current
Stage of development: Late stage
Type of instrument — Impact Bond: No; 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: Yes
Rationale for using outcome-based finance: CGM was created by carbon market pioneers, social venture founders, and impact measurement practitioners who have established new markets and funded impact through previous ventures, Bluesource (now Anex Climate) and The Paradigm Project, but who were frustrated with the markets' failure to recognize the significant economic value of social impacts across east Africa. Similar to the historical exponential growth of voluntary carbon credit markets, we believe there is significant potential growth for voluntary social impact markets. The growth of voluntary social impact markets would represent mostly new smart financing for achieving the SDGs. Village Enterprise is prepared to scale our own programming and to draw on our experience providing technical assistance to other implementers and governments to support other institutions to scale similar models of impactful programming as these markets grow. 
Key challenges to launch: Village Enterprise requests support from the Outcomes Accelerator for the costs of the independent impact audit needed, estimated at $30,000, to verify our impact for this first issuance. Similar to when the carbon markets first emerged, potential social impact buyers are interested in purchasing verified impact assets, rather than advance purchase commitments like in the context of the Village Enterprise DIB, where outcome funders pre-committed to paying for outcomes. 
Social/developmental challenge: For the first time in 25 years, extreme poverty is on the rise. Communities living in extreme poverty are still reeling from the unprecedented disruption of Covid-19, and are the most affected by rapid inflation. In Kenya, 17% of the population (9M people) live in extreme poverty. There is a growing SDG financing gap estimated at US$ 4.2 trillion per year (+70% compared to pre-Covid). Closing this gap necessitates mobilizing more resources and more effective use of those. The poverty graduation model is an excellent example of an evidence-based approach to ending poverty through micro-enterprise creation. However, results vary significantly across and within countries. Tying payment to results could address these limitations by both providing flexibility to adapt and accountability for results. But payment for results at scale has been limited.
Expected intervention model: This project aims to market and sell social impact generated through implementation of the evidence-backed Village Enterprise poverty graduation model on an emerging impact marketplace called the Common Good Marketplace (CGM). CGM is a global impact marketplace that exists to advance the SDGs and human flourishing by measuring, valuing, independently verifying and delivering social and environmental impact. The impact generated by Village Enterprise will be validated and marketed as "Verified Impact Assets" (VIAs). Upon successfully marketing and selling our first issuance of VIAs, Village Enterprise's leading impact investors for our first impact bond, such as Delta Fund and Bridges Outcome Partnerships, are ready to provide the working capital needed to further scale Village Enterprise programming, the social impact of which would also be validated and marketed on the Common Good Marketplace.
Policy sectors — Employment and private sector development: No; Education: No; Social protection: Yes; 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: 
Primary SDG goal: 1, 8, 10
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: Yes; Upper-middle-income: No; High-income: No
Notes: Data for this pipeline project was last updated in March 2024
Delivery location: Kenya