Outcomes-based finance is a relatively simple idea with some complex solutions. And it’s growing. Already, according to statistics published recently by the World Economic Forum, outcomes-based finance is valued at $185 billion.
According to speakers at a recent Devex panel on the future of OBF in development, it’s an idea that’s destined for further growth.
“One of the main drivers over the years has been the SDG funding gap and a recognition that we’re not just going to fill that gap with more money,” said Richard Hawkes, chief executive of the British Asian Trust, an organization which has worked on several outcomes-based finance projects in India and Pakistan. “We’ve got to look at different ways of doing things. And I think more recently, in the last six months or so, I think there’s a much stronger recognition.”