This case study explores the potential of Development Impact Bonds (DIBs) as a financing mechanism for Faecal Sludge and Septage Management (FSSM) initiatives. It delves into the application of DIBs to address sanitation challenges, focusing on their capacity to link funding to measurable outcomes. The document discusses how DIBs can incentivize effective service delivery by shifting financial risk to investors who are repaid upon achieving pre-defined results. It highlights the benefits of such an approach for improving urban sanitation and outlines the complexities involved in designing and implementing DIBs for FSSM projects.
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