Social Impact Incentives (SIINC)
Social Impact Incentives (SIINC) is a funding instrument that rewards high-impact enterprises with time-limited premium payments for achieving social impact.
The additional revenues enable them to improve profitability 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.
SIINC white paper
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 two case studies to date:
- Clínicas del Azúcar – low-cost diabetes treatments in Mexico
- Village Infrastructure Angels – off-grid energy solutions for women empowerment in rural Honduras
In addition, there is a detailed SIINC Data Analysis Report on Clínicas del Azúcar available, prepared by Ari Bronsoler from MIT in 2020.
As of January 2021, we have 6 SIINC transactions closed with the impact enterprises shown below. 13 additional SIINC transactions are in preparation and 37 more cases expected through several of our programs and SIINC projects.