The Jobs Fund operates on challenge fund principles.
A key element of a challenge fund is that project selection and funding allocations are based on an open, competitive process, in relation to pre-defined eligibility and impact criteria. These criteria are designed to maximise innovation, impact and sustainability.
By selecting projects through a competitive process, public funding is channeled directly to the initiatives most likely to have impact. Globally, challenge funds have emerged as effective and versatile financing mechanisms within which to channel public money to catalyse innovation and investment in a way that benefits the poor. They are typically employed in emerging markets.
The ultimate development goal of a challenge fund is to, through a finite intervention, stimulate long-term change in the way that local supply chains and market systems work so as to overcome barriers such as cost, technology, and infrastructure.
Other challenge funds in Africa:
Africa Enterprise Challenge Fund (AECF)
Africa Biosciences Challenge Fund (ABCF)
Financial Education Fund (FEF)