Deputy Minister in the Presidency Nonceba Mhlauli has issued a forceful call for the global development finance community to fundamentally rethink its approach, insisting that every investment must produce tangible, verifiable results rather than simply being spent. Her remarks came as she formally launched the 2026 Outcomes Finance Alliance Summit in Cape Town, where delegates from government, business, philanthropic organisations and civil society gathered to chart a new course for development funding.
Mhlauli painted a stark picture of the interconnected crises confronting the world, from soaring youth unemployment and entrenched poverty to overburdened health and education systems compounded by the escalating effects of climate change. She argued that outcomes-based financing offers a critical departure from conventional models by redirecting attention away from inputs and activities toward demonstrable impact.
"At its core, this Summit speaks to one of the most urgent questions of our time: how do we ensure that every rand, every dollar, and every investment delivers meaningful, measurable change in people's lives."
Jobs fund demonstrates outcomes model at scale
The Deputy Minister pointed to South Africa's own track record as proof that the approach can work. The Jobs Boost Outcomes Fund, valued at R300 million, stands as one of the largest employment-focused outcomes financing programmes anywhere in the world. Under its framework, government only pays once employment results have been independently verified, rather than funding activities upfront. To date, more than 9 100 verified enrolments and over 6 800 confirmed job placements have been recorded, with in excess of R220 million already disbursed against proven results.
The programme specifically targets young people who are not in employment, education or training, with a deliberate focus on inclusion for women and individuals from underserved communities. Implementing partners including BlueLever, Swift and Afrika Tikkun have been instrumental in providing training and facilitating job placement support. Mhlauli emphasised that the initiative has gone beyond simply creating work opportunities, restoring dignity and renewed hope among its young beneficiaries.
"These are not abstract outcomes. They are real transformations. They remind us that outcomes-based financing is about unlocking human potential at scale."
Beyond employment, Mhlauli also noted advances in early childhood development through outcomes-based funding designed to bolster school readiness and child wellbeing, particularly in disadvantaged communities. She stressed, however, that the success of such models hinges on robust cross-sector partnerships built on trust, shared risk and a readiness to break free from traditional institutional silos.
From conversation to concrete commitment
The Deputy Minister challenged summit participants to translate their discussions into decisive action, calling for practical pathways to scale up outcomes financing, a stronger pipeline of investable opportunities, and enhanced institutional capacity within both governments and implementing organisations. She underscored that the benefits of this financing approach must ultimately reach those communities most in need of support.
"Governments are being called upon to do more with less, while citizens demand accountability, transparency and results. Outcomes-based financing responds directly to this reality."
Mhlauli reaffirmed South Africa's commitment to leading the way in advancing innovative financing models that promote accountability, improve service delivery and drive inclusive economic growth. She encouraged delegates to share lessons candidly, forge meaningful partnerships and leave the summit with firm commitments that will strengthen the global outcomes financing ecosystem for years to come.
South Africa's push toward outcomes-based financing could reshape how development funds reach communities battling youth unemployment and poverty. With the R300 million Jobs Boost Outcomes Fund already delivering thousands of verified job placements, the model's expansion may attract further investment and improve accountability across public spending. If the summit produces binding commitments and scalable frameworks, businesses and civil society organisations stand to benefit from more efficient funding pipelines, potentially accelerating service delivery in education, health and employment nationwide.
