Innovative Financing to Reduce Chronic Malnutrition in Guatemala: Development Impact Bond Feasibility Study

Despite efforts to address chronic malnutrition in Guatemala, stunting among children under five years of age remains high. Exploring new ways to finance nutrition interventions in Guatemala and instill management practices that promote efficiency and innovation, HEP+ conducted a study to determine the feasibility of a development impact bond (DIB), in which investors are rewarded for achievement of outcomes. Based on a literature review and interviews with key stakeholders in Guatemala, this report provides a list of potential DIB partners, a theory of change for the DIB intervention, key components of the DIB, and the potential cost and impact of the DIB. By mobilizing private capital for nutrition from investors, and applying performance-based financing, a nutrition DIB could help to scale up promising interventions and potentially prevent thousands of cases of stunting in children.

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