Nando's has joined a public-private partnership that has designed the Mozambique Malaria Performance Bond (MMPB), a development impact bond (DIB) which aims to address the funding gap for malaria interventions by increasing funding and efficiency for malaria interventions through a pay-for-performance mechanism. It will achieve this goal through: 1) a structure of sharing risk and returns across a range of stakeholders including public and private funders, impact investors, and health implementing organizations; and 2) a performance-based approach for NGOs implementing the malaria program that ties payment to impact outcome targets. The MMPB aims to cover 90% of the population at-risk with LLINs and 85% with IRS in the targeted areas.
Through its commitment, Nando's intends to set up the structural and financial mechanisms to oversee the MMPB, including the Goodbye Malaria Trust (GMT) and the Bond Against Malaria Mozambique (BAMM) Operating Company, which will ensure efficient roll-out of the MMPB, in partnership with Dalberg Global Development Advisors and AngloAmerican. Through the GMT, Nando's and BAMM are working with the Mozambique Ministry of Health to coordinate the program's implementation in the Maputo province, with the goal of launching a three-year pilot bond in January 2014.
The bond will raise money from impact investors looking for a financial and social return. If the malaria interventions are effective in reducing incidence rates by 30% or more by year three, the MMPB will repay investor principal with 5% interest. If the interventions are ineffective, investors are repaid 50% of their principal, with no interest and funders are absolved of further commitments.
|Location||Mozambique, Southern Africa|
|Value||USD 25 Million|