Value for Money Framework

The Value for Money (VfM) Framework is a guide developed by FSD Africa to provide a consistent, practical structure for assessing and reporting on how resources are used within the Financial Sector Deepening (FSD) network. It employs an evaluative reasoning approach based on the 'Four Es' (Economy, Efficiency, Effectiveness, and Equity) and cost-effectiveness, using predefined criteria and performance standards (rubrics) to make robust judgements from mixed-methods evidence.

• The framework defines Value for Money (VfM) as an evaluative question regarding the justification and quality of resource use, rather than a simple set of indicators. It posits that a 'good' choice in resource allocation is one that compares favourably to the next-best alternative use of resources.
• The assessment process is built upon the 'Four Es' and cost-effectiveness: Economy (cost and value of inputs), Efficiency (conversion of inputs to outputs), Effectiveness (achievement of outcomes and impacts), and Equity (distributive fairness and targeting of marginalised groups). Cost-effectiveness specifically compares outcomes or impact against total costs.
• To ensure transparency and reduce subjectivity, the framework uses 'rubrics' consisting of criteria (definitions of what good performance looks like) and standards (defined levels of performance ranging from 'excellent' to 'poor'). This allows judgements to be traceable and challengeable.
• The framework is deliberately aligned with the Impact-Oriented Measurement (IOM) framework and the Compendium of Indicators to ensure consistency in terminology and to maximise the use of existing monitoring and results measurement (MRM) data, thereby reducing the reporting burden on staff.
• The framework advocates for a mixed-methods approach to evidence, combining quantitative indicators with qualitative narratives, case studies, and economic analysis. It warns that relying solely on quantitative indicators can lead to mistaking what is measurable for what is important.
• Because FSDs operate in complex political and market contexts, the framework incorporates 'contribution analysis' rather than strict attribution. This involves establishing a plausible link between FSD activities and observed market changes while considering alternative explanations like 'deadweight' or 'shared effects'.
• The framework recognises the role of 'emergent strategy' in complex adaptive programmes, noting that valid VfM judgements must account for the fact that some intended strategies may become unrealised while new approaches are adopted in response to the evolving environment.
• VfM assessments are recommended at the whole-of-FSD level, though they can be applied to specific projects. The suggested frequency is a comprehensive assessment every 2-3 years, with briefer annual reviews to update trajectories.

APA

FSD Africa (n.d.). Value for Money Framework. https://fsdafrica.org/wp-content/uploads/2025/05/Value-for-Money-Framework.pdf

Chicago

FSD Africa. Value for Money Framework. n.d. https://fsdafrica.org/wp-content/uploads/2025/05/Value-for-Money-Framework.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Value for Money Framework |url=https://fsdafrica.org/wp-content/uploads/2025/05/Value-for-Money-Framework.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafricandvalue, author = {{FSD Africa}}, title = {{Value for Money Framework}}, institution = {FSD Africa}, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Value-for-Money-Framework.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }