Cape town: Deputy Minister in the Presidency, Nonceba Mhlauli, has called for a shift in how development is funded, urging global leaders to prioritize measurable impact over expenditure. This announcement was made 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 highlighted the world's mounting challenges, including rising youth unemployment, persistent poverty, strained health and education systems, and the growing impact of climate change.
According to South African Government News Agency, the summit, hosted in partnership with the South African Medical Research Council and other stakeholders, aims to bring together global leaders and policymakers to advance outcomes-based financing as a tool to accelerate social and economic development. Mhlauli emphasized that outcomes-based financing represents a necessary evolution in development finance, shifting the focus from inputs and activities to results and impact.
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 enrollments and more than 6,800 job placements achieved to date. More than R220 million has already been disbursed based on independently verified results.
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 noted that the program has not only created employment opportunities but restored dignity and hope among young beneficiaries.
She also referenced 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 the success of outcomes-based financing depends on strong partnerships across sectors.
The Deputy Minister urged participants to commit to concrete actions that will strengthen the global outcomes financing ecosystem, emphasizing the importance of moving from dialogue to action. She encouraged the identification of practical pathways to scale, building institutional capacity within governments and implementing organizations, and ensuring the benefits of outcomes-based financing reach those who need it most.
Mhlauli affirmed South Africa's commitment 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 the Summit as an opportunity to share lessons openly, build meaningful partnerships, and commit to actions that will advance the outcomes financing ecosystem globally.
The Outcomes Finance Alliance Summit, which runs from 25 March, brings together global stakeholders to explore ways to expand outcomes-based financing across sectors such as health, education, climate, and job creation.