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Social Impact Incentives (SIINC)

Social Impact Incentives (SIINC) is an Impact-Linked Finance instrument that rewards enterprises raising investment with payments for achieving predefined social outcomes.

SIINC can effectively leverage public or philanthropic funds to catalyze private investment in underserved markets with high potential for positive impact. This combination of catalytic funding and investment makes SIINC also a blended finance instrument.

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Why SIINC is relevant

 

… for enterprises:

The SIINC model makes it possible to scale without compromising on generating strong positive impact. SIINC can act as an additional revenue stream that directly improves the enterprise’s income. With SIINC-related payments, the enterprise enjoys full flexibility about the type and source of investment to bring in.

… for investors:

SIINC improves the risk/return profile of enterprises by rewarding them for optimizing their impact. The enterprise will be able to continue or even accelerate its efforts to generate deep impact while offering sufficient returns.

… for public funders and donors:

SIINC offers great value since an outcome funder only provides time-limited rewards for impact that is actually generated. The outcome funder works with the enterprise to decide on the desired outcomes and on the terms for incentivizing these. If SIINC is used properly, the enterprise will continue to generate positive impact long after the SIINC agreement is finished.

 

SIINC was co-created by the Swiss Agency for Development and Cooperation (SDC) and Roots of Impact.

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Final SIINC case study Clínicas del Azúcar

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SIINC learnings report EnDev

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Independent SIINC case study by SDC

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Testimonials

Willy Foote
Founder & CEO, Root Capital
"The SIINC model is a game-changer. It will enable Root Capital—and ultimately many other financial institutions—to lend to the enterprises that need it most. These are businesses that we otherwise might not reach, but that demonstrate substantial promise for growth and impact in the future."
Dennis Price
Project Director, ImpactAlpha
"The Social Impact Incentives scheme boosts the viability of businesses serving the poor by aligning impact with profitability."
Dr. Peter Beez
Senior Policy Adviser, SDC
"Public funders and philanthropists play a vital role in unlocking the potential of inclusive business models. But to unfold the catalytic power of their activities, the most effective use has to be made of the resources. This is the line of thought that led us to co-create Social Impact Incentives."
Javier Lozano
Co-Founder & CEO, Clínicas del Azúcar
"I was very excited by the results, and definitely by some unexpected outcomes because of SIINC, like the aligning of the executive team that produces results even beyond the scope of the project."
Katie Naeve
Ex-Senior Impact and Partnership Manager, Root Capital
"SIINC has so far proven to be an effective pay-for-impact model. The model is catalytic. It’s about bringing in these [small and 'risky'] agribusinesses for the first time, providing them the resources and the services that they need to grow, and once they grow, they no longer need subsidy and support.”
Alejandro Escobar
Lead Investment & Operations Officer, Inter-American Development Bank
"With an increasing number of agricultural businesses that offer critical services to small farmers and rural populations, we see the SIINC model as a timely mechanism to reach these enterprises and sector."
Katia Cerwin
Co-Founder, Programa Valentina
"SIINC provides you with the freedom to find new solutions for whatever needs you have, while still allowing you to focus on impact. Thanks to SIINC, we didn’t have to choose between impact and survival – this held particularly true in a challenging year such as 2020. And for potential investors, SIINC is a seal of approval.”

SIINC transactions & case library

SIINC was first introduced in Latin America with CLÍNICAS DEL AZÚCAR (CDA) in 2016 and has expanded its scope internationally since. Read how SIINC empowers enterprises to reach impact at scale in our case studies, interviews and data analysis reports published to date:

As of April 2022, we have 30 SIINC transactions in various stages: 16 ongoing or completed SIINC transactions (contracts closed), 12 transactions in preparation and another 2 transactions in our pipeline. Below are some of the enterprises that our team and the SIINC PROGRAM PARTNERS are supporting on their exciting impact journeys:

Select SIINC transactions 8-22
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