Evaluating the Village Enterprise Development Impact Bond

Business groups show off their cash disbursements after a Village Enterprise event.

Business groups show off their cash disbursements after a Village Enterprise event.

Partners: Village Enterprise, Instiglio, Delta Fund, Silicon Valley Social Venture Fund
Location: Kenya, Uganda
Sector: Social Protection
Dates of service: 2017 – 2021
IDinsight service: Decision- Focused Evaluation
IDinsight contacts: Penny Davis, Christy Lazicky
Status: Active
Additional resources: Process Evaluation Document
Media coverage: World Finance

The Problem

Despite decades of development work and billions of dollars expended, over 760 million people still live in extreme poverty, with over half in sub-Saharan Africa. Village Enterprise offers a household graduation program where they provide first time entrepreneurs with inputs such as seed capital, training, and mentoring. The goal is for these households to start sustainable businesses, grow their income and elevate their households out of poverty.

Village Enterprise, IDinsight, Instiglio, USAID, and DFID are partnering together on the Village Enterprise Development Impact Bond to impact over 12,000 households in Kenya and Uganda. The outcome payers, USAID and DFID, will pay Village Enterprise and its investors based on results achieved rather than the traditional model of program delivery. With a razor-sharp focus on results, the set up guarantees that donor money is linked to measurable increases in consumption and net assets (as a proxy for income).

Evidence Needs

IDinsight Service

As the evaluator of the DIB, IDinsight is designing and implementing a randomized control trial (RCT) to independently and rigorously measure the impact of Village Enterprise’s poverty alleviation efforts to ensure that DIB payments are tied to robustly measured outcomes. IDinsight is further responsible for independently verifying the seed capital transfer component of VE’s program to ensure that cash has reached VE beneficiaries so that donors can unlock funding for VE.

The project is ongoing.