What is the Outcomes Accelerator?
The Outcomes Accelerator is a public-private, global initiative created to accelerate more effective testing, scaling and mainstreaming of outcomes-based financing approaches in the delivery of SDG impact. The Outcomes Accelerator works with stakeholders across the outcomes-based financing ecosystem - governments, development agencies, investors, services providers, intermediaries, and corporates.
The Outcomes Accelerator is an initiative of the Outcomes Finance Alliance (OFA) funded and supported by the UBS Optimus Foundation, the UK Foreign, Commonwealth and Development Office (FCDO) and the Swiss State Secretariat of Economic Affairs (SECO) in making outcomes-based financing approaches more efficient and mainstreamed and to move the market ecosystem toward maturity. Levoca serves as the Manager of the Outcomes Accelerator.
This initiative is founded on the recognition that outcomes-based approaches hold great promise for improving the effectiveness of donor and Government spending, but that funding remains highly fragmented, important institutional barriers and disincentives exist, and scale is required for effective demonstration.
Key Services Offered
The Outcomes Accelerator offers three core products and services to partners to build the market
Provide seed funding, expertise and match making to support the design and incubation of outcomes based finance instruments and programs.
Address systemic barriers to wider adoption and mainstreaming of outcomes approaches in support of the SDGs by promoting activities and collaborations that support, shape, influence, and enable the launch of high-quality transactions.
Promote access to technical assistance, expertise, systematize operational learnings and best practices in partnership with existing knowledge hubs.
The policy-level objective of the Outcomes Accelerator is to facilitate greater resource efficiency and effectiveness in achieving the SDGs for international development funding agencies and domestic Governments that utilize pay-for-success strategies.
The industry-level objective of the Outcomes Accelerator is to advance a thriving global market of viable stakeholders, including Government and institutional outcomes payers, service providers, evaluators, and private investors with the aim of delivering better and more cost-effective services targeting the SDGs.
The Outcomes Accelerator will be a participatory platform based on core principles of openness, transparency, inclusion, and consultative decision-making and strives to must meet the diverse needs of four sets of key stakeholders:
Including multilateral and bilateral funding organizations, private philanthropy, corporates and domestic governments.
Including non-profit and for-profit organizations that implement outcomes-focused programs.
Including project developers, intermediaries, consultants, research organizations, law firms, and evaluators.
Including high-net worth individuals, development finance institutions, foundations, institutional and other investors, or providers of risk or working capital.
Over 40 public and private organizations working in outcomes-based finance have supported the design of the Outcomes Accelerator. The priorities and services offered by the Accelerator will continue to be refined to reflect stakeholder and market needs.
The Outcomes Accelerator was conceived by address the key barriers impeding the market and catalyze the market’s capacity to translate learning from pilots into replication and scaling of impact.
Despite this growing interest outcomes-based financing approaches, the ecosystem remains in an early-learning phase.
Most transactions are a first-of-a-kind demonstration projects, often in a specific theme or geography, with long lead times. Outcomes payers, service providers and investors confront steep learning curves as parties gain experience. Donor agencies and domestic governments in developing countries remain constrained by low capacity, limited access to the skills and expertise and a range of institutional barriers and cultural disincentives that limit that testing and use of outcomes-based approaches.
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