With a goal of creating 230,000 decent jobs, The Challenge Fund for Youth Employment (CFYE) co‑invests with private‑sector partners to create decent employment opportunities for young people. Over 22 funding rounds, 130 reviewers evaluated more than 1700+ applications from companies seeking to scale employment solutions.
CFYE’s selection process is intentionally rigorous, transparent, and impact driven, focused on the private sector as the main actor to drive solutions for employment challenges. The businesses selected are mature enough to absorb CFYE’s co-investment and contribute to job creation but have not yet scaled enough to secure traditional debt or equity financing. By engaging with the private sector, CFYE leverages the expertise and resources of businesses to support job opportunities and drive the wider intended economic development goals.
This brief paper shares the design choices that improved the implementing partner suitability and reduced selection risk. It provides some practical guidance for practitioners and implementers in impact funding when making funding decisions.
