Problem
The Government of Morocco faced persistently high youth unemployment and sought an innovative financing model to scale effective job training programs while ensuring accountability for results. The core challenge was to shift from funding training activities to paying for verified employment outcomes.
Methodology
I led the design and structuring of MCC’s first major application of Results-Based Financing to tackle this challenge.
- Data Collection & Analysis: Analyzed national labor market data (HCP) and performance metrics from existing Technical and Vocational Education and Training (TVET) programs to identify key drivers of unemployment and establish baseline performance for training providers.
- Modeling & Technique: Structured a multi-million dollar Results-Based Financing (RBF) instrument, defining verifiable outcome metrics (e.g., job placement duration), payment triggers, and an underlying financial model for the Social Impact Bond (SIB). This included conducting a cost-benefit analysis of the proposed intervention.
- Communication & Strategy: Authored the detailed investment memorandum and presented the financial and operational structure to MCC’s investment committee and senior Moroccan government partners, securing buy-in for this novel approach.
Outcome
The project established a new paradigm for funding workforce development at a major U.S. government foreign aid agency.
- Strategic Impact: Pioneered MCC’s first major application of Results-Based Financing, creating a new institutional model for outcomes-based funding that has since been replicated.
- Operational Impact: Established a public-private partnership framework that directly links funding for training providers to the successful placement of graduates in sustainable employment, shifting risk from the public sector.
- Knowledge Impact: Generated a replicable blueprint for deploying SIBs in middle-income countries, influencing the design of subsequent RBF programs across the U.S. government.