Sida has been using Challenge Funds to finance entrepreneurs and innovators that are willing to contribute to economic, environmental, and social sustainability. Challenge funds offer Sida the opportunity and flexibility to support civil society and private sector initiatives to develop innovative solutions to development problems.
Making an Impact
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Development of comprehensive guidelines for Sida personnel and partners engaged in the design and implementation of challenge funds
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Expected to influence the management of a range of Sida-supported challenge fund programmes.
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Approx. 90% of the challenge funds supported by Sida aim to explicitly use market incentives to test and scale innovations which emphasises the importance of private sector led approaches to fund design, management, and grant/ project implementation.
