The International Committee of the Red Cross has set up the world’s first humanitarian impact bond, worth more than 26m Swiss Francs (£20m). The money raised will be used to build and run three new physical rehabilitation centres in Nigeria, Mali and Democratic Republic of Congo over a five-year period. It will also go towards training for new staff as well as the testing and implementation of new efficiency initiatives. The ICRC says a growing annual budget and a rising number of conflicts are the reasons why the new funding model has been created. Peter Maurer, the ICRC’s president, said: “This funding instrument is a radical, innovative but at the same time, logical step for the ICRC. It is an opportunity not only to modernise the existing model for humanitarian action, but to test a new economic model, designed to better support people in need. “We hope that once the pilot project is proven, it will demonstrate that non-traditional financing models can work. “There is great potential for investments that are built around improving the social, environmental and economic conditions so that humanitarian action advances in impact, effectiveness and scale in ways never seen before.”
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