How can outcomes-based financing models drive educational inclusion for vulnerable youth in Latin America?
As part of Social Finance International's work in El Salvador in partnership with FUSALMO and IDB Lab, this report documents the design, implementation, and lessons learned from InnovaEdu, the country's first Outcomes Based Finance (OBF) mechanism in education. Implemented during the 2025 school year, InnovaEdu reached 1,200 students in grades 7–9 across 30 public schools in Soyapango and Ciudad Delgado, combining extracurricular STEAM education, EdTech tools, and socio-emotional support to reduce dropout and strengthen 21st-century skills.
This report presents key lessons across two areas: the design and implementation of the OBF mechanism, and the effectiveness of educational intervention. It is intended for practitioners, governments, or funders interested in exploring the use of OBF to improve educational outcomes.