Why OBF in Education?

Key Takeaways from the 2026 Outcomes Finance Alliance Summit

Miléna Castellnou

Chief Programmes Officer, the Education Outcomes Fund

Well-designed outcomes-based financing (OBF) programmes can deliver real impact and inform policy – that's my main takeaway from last month’s Outcomes Finance Alliance Summit in Cape Town. It was exciting to see the Summit take place on the African continent for the first time. The strong leadership from the South African government, and its commitment to applying OBF across multiple sectors, really stood out. I was happy to be joined by Kerry Kassen, who leads EOF’s work in the country, including the ECCE Outcomes Fund, the biggest outcomes fund in early childhood education globally.

The thing that struck me compared to previous summits is how much the ecosystem has matured — we’re now seeing programmes at greater scale and increasingly embedded within government systems. Kerry and I moderated summit’s education sessions, where governments were so eager to share ideas, ask questions and learn from each other. Truly rewarding to be a part of conversations with government representatives from Botswana, Nigeria, Namibia and South Africa.

A central question we explored was: why OBF in education? There was a clear consensus, especially from governments, that this approach responds to a growing frustration with the status quo. As Sijuade Idowu-Tiamiyu, Executive Board Member at the Lagos State Universal Basic Education Board put it: we have all the tools on the construction site, yet the building is not going up.

What does it take to unlock that potential? Government leadership and a real appetite for innovation came up again and again as essential. But that’s not enough, — treasury buy-in, aligned and committed funders, and a strong ecosystem of implementing partners are all critical pieces of the puzzle.

It was particularly valuable to hear from countries at different stages of the journey. In Namibia, Nigeria, South Africa, and Tunisia, EOF is working alongside governments to design and implement OBF programmes, from early childhood to basic education to youth employment, and from early-stage partnerships to programmes already in delivery. In Namibia, we are in the early phases of design, working hand-in-hand with the ministry to rethink how early childhood development is financed and delivered. In Nigeria, our partnership with Lagos State Government demonstrates how OBF can be integrated into public education systems to reach both out-of-school children and those already enrolled. In South Africa, the programme marks the first time local and international donors are entering into a single outcomes partnership with government, aligning public leadership and philanthropic capital around shared accountability. And in Tunisia, we are applying OBF to one of the defining challenges of the decade: the gap between learning, skills, and work.

India offers important lessons from a more mature ecosystem. Initiatives like the LiftEd programme which aims to improve foundational learning for 6.5 million children illustrate what gradual institutionalisation can look like, with governments taking on greater financial ownership and increasingly embedding these approaches within public systems.

A key lesson for me is that institutionalisation doesn’t happen overnight. It requires a clear vision from day one, but also time for governments to test, learn, and build confidence in the model. It also means adapting systems — from procurement to budgeting to governance — and building capacity to manage programmes differently from traditional approaches.

This is where intermediaries play a critical role — and one that is often underestimated. Beyond technical expertise on OBF, they are system actors. They help governments navigate the complexity of design and implementation, while managing the process in a way that limits unnecessary burden on already stretched systems. They act as ecosystem coordinators: bringing together funders, implementers and governments, building trust between actors who don’t always naturally work together, and creating the structures and processes needed to align everyone around a shared set of outcomes.

Crucially, these field-building players also support the conditions for institutionalisation — helping adapt financial and legal frameworks, strengthening capacity within government, and preparing for a gradual handover of ownership. Our role is not about staying at the centre, but about enabling governments to take the lead with confidence over time. Strengthening this role thoughtfully will likely be an important part of enabling OBF programmes to grow and sustain impact.