the mif blog

Stories of inspiring entrepreneurs and organizations, discussion and commentary of new trends in private sector development, and the latest events and publications.

The Social Impact Incentives instrument boosts social entrepreneurs’ profitability once the impact performance is achieved: simple, flexible and entrepreneurial

By Laura Fernandez

In 2016 the Social Entrepreneurship Program, managed by the MIF, has approved the first two projects of the LAC-IMPACT facility, in collaboration with the Swiss Development Cooperation. This facility aims to innovate by financing Social Impact Incentives (SIINC). The SIINC consists of a Results-Based Financing mechanism, where the outcome impact payor agrees to make premium payments to the social enterprise based on the social contribution generated by its operations

Early risk, big rewards: A sweet story of success for smallholders in northern Peru

By Laura Fernandez

Small-scale farmers in northern Peru are finding that success is sweet. They are exporting Fair Trade organic panela (unrefined brown sugar) to France, Italy, Germany, and Canada thanks to the entrepreneurial acumen, creativity, and continual support of their cooperative, CEPICAFE, and an impact investment from the IDB/MIF Social Entrepreneurship Program (SEP). While previously dependent on coffee as their principal income source, this investment helped hundreds of farmers to diversify intopanela, and then cacao and other products, allowing them to improve their resilience to climate change, increase their incomes, and become direct suppliers of high quality organic and Fair Trade products.