State of Social Enterprise Africa 2025

C. Blended funds and outcomes contracts Governments, development finance institutions (DFIs), corporations and philanthropies can: –Establish social enterprise growth funds that combine public concessional finance (e.g. first- loss tranches, guarantees) with private capital to expand affordable growth finance. –Pilot outcome-based PPPs, such as development impact bonds in sanitation, health, skills or green livelihoods, where investors pre- finance delivery and governments repay based on verified results. –Ensure transparent design and shared risk so that financing structures remain credible, affordable and aligned with measurable development priorities. Why it matters: Blended funds expand the pool of capital available at terms social enterprises can afford, while outcome-based contracts ensure that public money is tied to verified improvements in people’s lives. For investors this reduces risk; for governments it secures value for money; for social enterprises it provides flexible, performance-linked finance. Credit: Sanergy Collaborative / Creativey Productions The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 53