Deputy Minister in the Presidency, Nonceba Mhlauli, has called for a shift in how development is funded, urging global leaders to prioritise measurable impact over expenditure.
This as she officially opened the 2026 Outcomes Finance Alliance Summit in Cape Town.
Addressing delegates from government, the private sector, philanthropy and civil society, Mhlauli said the world faces mounting and interconnected challenges, including rising youth unemployment, persistent poverty, strained health and education systems, and the growing impact of climate change.
“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,” she said.
The summit, hosted in partnership with the South African Medical Research Council and other stakeholders, brings together global leaders and policymakers to advance outcomes-based financing as a tool to accelerate social and economic development.
Mhlauli said outcomes-based financing represents a necessary evolution in development finance, shifting the focus from inputs and activities to results and impact.
“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,” she said.
She highlighted South Africa’s progress in implementing the model, pointing to the Jobs Boost Outcomes Fund as one of the largest globally focused models on employment.
Through the R300 million fund, government pays for verified employment outcomes rather than activities, with over 9 100 verified enrolments and more than 6 800 job placements achieved to date. More than R220 million has already been disbursed based on independently verified results.
“This is not a pilot in theory. It is a demonstration, at scale, that outcomes-based financing can deliver real, measurable employment results,” Mhlauli said.
The initiative targets young people not in employment, education or training, with a strong emphasis on inclusion, particularly for women and those in underserved communities.
Implementing partners such as BlueLever, Swift and Afrika Tikkun have played a key role in delivering training and job placement support.
Mhlauli said the programme has not only created employment opportunities but restored dignity and hope among 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,” she said.
She also pointed to progress in early childhood development through outcomes-based funding models aimed at improving school readiness and child wellbeing, particularly in disadvantaged communities.
However, Mhlauli stressed that the success of outcomes-based financing depends on strong partnerships across sectors.
“It requires trust, shared risk, and a willingness to move beyond traditional silos,” she said, adding that collaboration between governments, investors, philanthropies and service providers is critical to scaling impact.
The Deputy Minister urged participants to move beyond discussions and commit to concrete actions that will strengthen the global outcomes financing ecosystem.
“We must move from dialogue to action. We must identify practical pathways to scale. We must strengthen the pipeline of investable opportunities.
“We must build the institutional capacity required within governments and implementing organisations. And we must ensure that the benefits of outcomes-based financing reach those who need it most,” she said.
Mhlauli said South Africa remains committed to playing a leading role in advancing innovative financing models that promote accountability, improve service delivery and drive inclusive growth.
She further encouraged participants to use this Summit as an opportunity to share lessons openly, to build meaningful partnerships, and to commit to concrete actions that will advance the outcomes financing ecosystem globally.
“Let us work together to ensure that financing is not only mobilised, but that it delivers real, measurable, and lasting outcomes,” she said.
The Outcomes Finance Alliance Summit runs from 25 March, bringing together global stakeholders to explore ways to expand outcomes-based financing across sectors such as health, education, climate and job creation. – SAnews.gov.za
