New funding model could reshape Africa’s circular financing

From the newsletter

In a landmark move for Africa’s circular finance landscape, South Africa has secured a $925 million loan from the World Bank through a performance-based funding model. The financing is tied to measurable improvements in urban service delivery, including solid waste management, across eight major metropolitan municipalities. 

• The funding is the first-ever Program-for-Results (PforR) operation in the country. PforR is a results-based financing instrument that disburses funds only after agreed results are achieved and verified.

• By tying financial support to measurable outcomes, results-based models incentivise performance, and strengthen accountability while ensuring a sharp focus on tangible development targets.

More details