Paper short abstract:

A conceptual integration of impact bonds (typically oriented towards large, Western investors) and microfinance (community-focused financial inclusion and economic development) in providing outcome-oriented delivery of public services (primary education) in community schools in Zambia: A Case Study

Paper long abstract:

Until recently, funding for community-school based primary education in Zambia often relied on direct/indirect parental fees. At the end of 2021, the Zambian government introduced a new free education policy, prohibiting such payments. Instead, for the first time, most community schools now receive a direct operating grant from the government.

My research focused on the impact of this new policy on a small-N sample of urban community schools in Ndola/Zambia. My findings show that the new grants are typically insufficient in offsetting the loss from previous fee-based funding. Especially for schools without external donors, this can result in existential challenges and thus presents a risk to the access to, and quality of, education for vulnerable student populations, especially post-pandemic.

Political reasons have so far made a resolution to this situation difficult. Building on the concept of social extraction (Lust and Rakner, 2018) I outline how modifications to the traditional impact bond concept, combined with microfinance-driven processes and structures, might offer innovative ways for government and parents to partner in the public-private provision of services such as primary education.

My paper outlines the requirements and roles of the various parties involved in what I term a Community Impact Bond [CIB] approach and points to unresolved questions and conceptual challenges of this concept.

Note: this presentation is based on my recently completed MSc dissertation (unpublished) at the University of Edinburgh.