Social Impact Bond “Málaga No Caduca” Feasibility Study

Financial Innovation to Combat Food Insecurity at the Local Level
Málaga No Caduca lays the foundation for the first Social Impact Bond in Spain, transforming food surpluses into sustainable opportunities for vulnerable families.

In November 2023, the Málaga Provincial Council, supported by the European Investment Bank (EIB), commissioned UpSocial to conduct a feasibility study to implement a Social Impact Bond (SIB) within the framework of the “Málaga No Caduca” project. The program’s objective is to address food insecurity through an interdisciplinary and holistic approach, leveraging the food collection and distribution efforts of the Costa del Sol Food Bank (BANCOSOL).

Study Objectives

The feasibility study pursued two main objectives:

– Analyze the feasibility of implementing a SIB in the province of Málaga to address food insecurity by utilizing surplus food from the hospitality sector and directing it to vulnerable families served by the Food Bank.

– Present a preliminary SIB prototype as a proposal based on the original “Málaga No Caduca” design, enabling progress towards drafting the tender documentation. This proposal includes:

• Recommendations to define the social challenge

• Options and recommendations for identifying the target population

• Preliminary intervention proposals with evidence of impact (national and international)

• Preliminary proposals for payment metrics, evaluation methods, and result price calculation systems, among others

Our Role

At UpSocial, we played a key role in enabling this results-oriented financial innovation. Specifically, we:

– Analyzed the feasibility of implementing a SIB and proposed a design prototype with specific recommendations for each variable.

– Supported, advised, and trained the Provincial Council in strategic decision-making for the SIB design.

Main Activities Conducted by UpSocial

– Definition of the Social Challenge: We contextualized and described the nutrition-related challenge faced by vulnerable populations in Málaga, outlining its severity, structural causes, and the potential impact of various interventions.

– Target Population Analysis: We identified profiles of potential beneficiary populations (size, demographic characteristics, current situation), with a focus on barriers to accessing adequate nutrition.

– Expected Results and Success Metrics: We established social outcomes to be achieved and defined concrete, measurable indicators to evaluate intervention effectiveness.

– Price Range Calculation: We proposed a methodology for calculating the price of results, essential for structuring SIB payments.

– Mapping Interventions with Proven Impact: We identified effective practices applied in similar contexts to improve nutrition among vulnerable groups.

– Identification of Key Actors: We pre-selected service providers and potential investors with experience and capacity to implement the proposed actions.

– Technical Review of Tender Documentation: We reviewed the documents prepared by the Provincial Council and provided inputs and recommendations to ensure the contract’s technical adequacy.

Final Result

The study confirmed the technical and operational feasibility of the SIB and generated a robust prototype to guide its implementation. This project represents a pioneering milestone in Spain and demonstrates how social and financial innovation can converge to address structural problems such as food insecurity.

Clients & partners

— Diputación de Málaga

— EIB Advisory Hub

— BANCOSOL