Social Impact Incentives (SIINC)
Social Impact Incentives (SIINC) is a blended finance instrument that rewards high-impact enterprises with time-limited premium payments for achieving social impact.
The additional revenues enable them to improve impact performance and attract investment to scale. Thus SIINC can effectively leverage public or philanthropic funds to catalyze private investment in underserved markets with high potential for positive impact.
Why SIINC is relevant
… for impact enterprises and inclusive businesses:
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 premium 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 high-impact enterprises by rewarding them for 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.
Final SIINC case study Clínicas del Azúcar
SIINC learnings report EnDev
Independent SIINC case study by SDC
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:
- CASE STUDY CLÍNICAS DEL AZÚCAR – low-cost diabetes treatments in Mexico
- INTERVIEW WITH PROGRAMA VALENTINA – certified tech-based training programs to support unemployed youth in Guatemala in finding job opportunities
- SIINC DATA ANALYSIS REPORT ON CLÍNICAS DEL AZÚCAR – prepared by Ari Bronsoler from MIT in 2020.
- CASE STUDY KWSH – access to clean piped water in Cambodia – INTERVIEW KWSH
- CASE STUDY AQYSTA – affordable, low-emission, hydro-powered pumps for irrigation in Asia – INTERVIEW AQYSTA
- INTERVIEW ATEC – biodigesters and clean cookstove solutions
- RESEARCH REPORT ROOT CAPITAL – unlocking finance for early-stage agricultural businesses in Latin America
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: