The private sector has to be more involved in the financing of humanitarian aid projects, pleaded on Thursday the Belgian minister, Alexander De Croo while standing alongside the International Red Cross at the Economic Forum in Davos. “The financial situation for public money is what it is at the moment, however there is still very sizable amount of capital in saving accounts. We have to activate this money while NGOs and other actors are determined to ensure more quality”, explained Mr De Croo.
On Thursday the Belgian Minister will launch “humanitarian impact obligations”, an initiative taken in collaboration with The International Red Cross President Peter Maurer. The model will take the format of “social impact bonds”.
Private investors are called upon to take a more leading role to allocate capital for the humanitarian backed actions. If the objectives of the humanitarian actions are positive, the idea is that the authorities will remunerate the private sector with a profit margin.
Christopher Vincent (Source: Belga)