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October 17, 2022 30 mins

Social impact bonds are a complex concept. But this episode tries to break it down and shares a success story. The key to social impact bonds is that the service providers only get paid if the project goes well — an incentive for excellent delivery.

Lerato Lehoko is the former managing director of Bonds4Jobs, a financial intermediary that implemented the first social impact bond in South Africa. In this episode Lerato explains how the private investment group Yellowwoods and the nonprofit Harambee Youth Employment Accelerator successfully set up the Inclusive Youth Employment Bond. We talk about how this bond is helping inclusive youth employment in South Africa and about the potential of social impact bonds more generally.

Listen to Ann Mei Chang’s episode here

Listen to Nicola Galombik’s episode here

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