Project: Innovative Financing Models for boosting employment in vulnerable populations in Mozambique
State of development: Current
Stage of development: Early stage
Stage notes: Post feasibility stage, where four concepts ready for market testing have been indentified and one will be selected. Currently seeking to partner with organisations and funders focused on gender and/or employment outcomes to operationalise these models.
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: Other: innovative financing models with an outcomes orientation
Part of a larger outcomes-based financing program: No 
Expected launch date: Q2 - 2023 or later
Total expected project development time: 12-24 months
Expected length of project (years): TBD
Project design process began: Q4 2020
Rationale for using outcome-based finance: Integrating outcomes-based financing principles into innovative finance models will catalyze new funding for the DUYW employment challenge in Mozambique by (i) creating sharp and shared incentives for all parties to achieve a common goal, and (ii) facilitate new partnerships, including with the private sector, that allows different capabilities, perspectives and networks to work together for a common good
Key challenges to launch: (1) Securing funding to take one or more of the models through to feasibility stage
(2) Operationalise the detailed concepts that have been developed in the scoping phase
Role of the domestic government — Outcomes funder: No; Service provider: No; Member of project committee: No; No formal role: No; Other: Yes
Service providers identified and selected — Request-for-proposals: Yes; Direct contracting by outcome funder/investor/intermediary: No; Provider-led deal development: No; Other: 
Feasibility study: Yes
Proposed financing instruments — Debt: No; Equity: No; Guarantee: No; Grant: No; Other: Key project terms will be identified in subsequent feasibility stages
Technical assistance grant: Yes — 
Estimated maximum potential outcome payment: Ranging from potential $500k to $20m (varying significantly between models and the appetite of funders) USD
Overall project finance notes: Up to $20 million
Social/developmental challenge: 50 % of Mozambicans are still living in poverty and social and economic inequalities are continuing to grow. The challenges faced by disadvantaged urban youth and women (DUYW) are severe. Without deliberate intervention to address the constraints facing them, this trend is set to worsen. MUVA, a Mozambican NGO supporting women’s economic empowerment, in collaboration with Social Finance, identified four outcomes-oriented innovative finance intervention models with the potential to enable DUYW  to access jobs and economic opportunities. Each responds to a specific set of challenges: (i) addressing the visible and invisible gender-specific barriers young women face when entering the workforce, (ii) the technical and financial support needed to incubate DUYW entrepreneurs, and (iii) the culture change required from larger employers to accommodate young women.
(Scoping report: https://www.socialfinance.org.uk/sites/default/files/publications/muvareport.pdf)
Expected intervention model: (1) a Female Economic Empowerment and Employment DIB
(2) an Early Stage Enterprise Catalytic Fund
(3) a Gender-Impact Blended Finance Fund
(4) an outcomes-oriented Public Goods Cash Transfer programme
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: ; Other: 
Secondary SDG goals: 10, 5, 8
Target population: Demand side: disadvantaged urban youth and young women in Mozambique
Supply side: enterprises, ranging from subsistence entrepreneurs to larger enterprises
Targeted number of unique service users or beneficiaries: TBD
Unit type of targeted beneficiaries: Individual
Country income classification of beneficiaries — Low-income: Yes; Lower-middle-income: No; Upper-middle-income: No; High-income: No
Notes: Data for this pipeline project was last updated in April 2022
Delivery location: Mozambique