Results-based, Performance linked or Outcome-based financing models are financing tools that direct money towards social programs that work by tying the funding of programs to their impact. Results-based financing approaches can play a critical role in the delivery of infrastructure and services. RBF has risen to the challenge of bridging the investment gap to achieve SDGs, growing to a market of over $25 billion in development spending as of 2019.
Through a range of mechanisms, outcomes-based financing helps deliver development outcomes, improves accountability, and drives both innovation and efficiency. Leveraging real-time data to inform decisions and adapt performance for service providers, creating room for innovation and flexibility, and assessment of whether the intervention has been successful or not through independent monitoring and evaluation are key features that build a strong case for outcomes-based financing.
