In 2016, SITAWI and the State Government of Ceará signed the first contract to structure a Social Impact Bond in Brazil. The initiative was supported by Social Finance UK, the first impact bond issuer, and the Inter-American Development Bank. This first project will focus on the health sector.
The Social Impact Bond (SIB) is a tool with the potential to change the working relationship among the public and private sector, as well as civil society. Focused on measured impact of interventions, this model is active in the UK, US and Mozambique. SITAWI is one of the pioneer organizations to work with SIBs in Brazil.
SIBs offer the possibility of financial returns when specific social outcomes are met. Currently, public procurement is prescriptive which inhibits the pursuit of efficiency or innovation and ignores social outcomes. The innovative component of SIB is that the risk is transferred from the operator to the investor.