The funding initiative is aimed at achieving Sustainable Development Goals (SDG)-aligned outcomes.
Legatum is investing with other investors, as are family offices such as the Tsao Family Office and other high-net-worth individuals.
UBS Optimus Foundation and Bridges Outcomes Partnerships, a specialised not-for-profit, created the SDG Outcomes programme.
In order to plan, fund, and deliver programmes for people who need them most, particularly in Africa and Asia, including India, as well as other low- and middle-income countries around the world, it collaborates with governments, corporations, and other outcomes funders.
With the help of donations from more than 30 UBS clients, UBS Optimus is able to provide 20% first-loss capital to SDG Outcomes in order to unlock further impact-driven capital.
Any profits from the philanthropic investment will be reinvested in new initiatives.
Maya Ziswiler, CEO of the UBS Optimus Foundation stated: “The SDG Outcomes initiative is one of the first of its kind to provide the scale so desperately needed to provide real impact. By creating an investible solution, we can help our clients and partners to mobilise all forms of capital – from philanthropic, through to public and private investors motivated by both financial and non-financial returns on their investments. We are excited to be bringing this landmark initiative to market.”
Agnes Dasewicz, chief operating officer of DFC, added: “DFC is proud to work with UBS Optimus Foundation and Bridges Outcomes Partnerships to invest in this pioneering blended finance initiative. The SDG Outcomes Initiative’s approach aligns with DFC priorities to catalyse private sector investment in critical areas, such as employment, education, and the environment in communities across Africa and Asia.”
The first investments will benefit people and the environment in West Africa
With over 42,000 students in 195 primary schools in Sierra Leone, SDG Outcomes is assisting the government in improving numeracy and literacy outcomes.
Furthermore, while contributing to the development of the schools through teacher development and curriculum enhancement.
The programme supports a similar government-backed outcomes collaboration in Ghana that aims to aid over 40,000 children already enrolled in school and expand access to education for an additional 18,000 children who are not currently enrolled.
The SDG Outcomes initiative is helping Wecyclers, a social enterprise that uses a franchising model to collect, resell, and recycle plastic trash, grow in Nigeria.
The initiative has specific goals for environmental and employment objectives.
Over the next five years, Wecyclers hopes to collect over 30,000 tonnes of plastic garbage, increase thousands of people’s earnings across Nigeria, and create over 700 franchise-related jobs.