Over the past decade, investment in education has become a strategic priority for IFC, a member of the World Bank Group. Education is a central element to IFC’s purpose of ending poverty and creating shared prosperity through private sector investment. IFC invests directly in companies, works with governments to improve education regulation, and brings partners together to find solutions to the challenge of broadening access to affordable, high-quality education. In choosing private sector partners, IFC looks for scalable models, innovations that bring down the costs and deliver resources to schools, and ideas for making education more relevant to employment.
IFC supports the start-up or expansion of initiatives in primary, secondary, technical, vocational and tertiary education. The organization works with local and regional clients to create centers of excellence; provide services that reach beyond main urban centers to lower-income groups; and support economically, environmentally, and socially sustainable projects. IFC’s investment activities are complemented by advisory services in areas like improving the business climate, value-added training, and studies that facilitate new products, and corporate governance.
IFC is leveraging its knowledge and understanding of private education to work more closely with providers based in developed economies who are looking to expand their investments into under-served markets. The strategy is to encourage and provide financing for the expansion of these global providers into new markets to build capacity and increase access to services.
- Increase reach and impact.
- Develop skills and enhance employability.
- Invest in private education enterprises/firms with a focus on viable and scalable models.
- Support innovation by investing in new service delivery models to increase affordability and quality.
- Replicate successful models in new markets.
- Leverage the World Bank Group’s convening power to share best practices and foster partnerships.
Areas of engagement in non-state education
Education level of supported projects:
Types of supported activities:
Typical legal status of supported projects:
Typical stage of supported projects:
Range of typical investment size:
$1 million and up
Typical length of investment:
Most are investments of between 5-10 years (“Patient Capital”)
Size of overall portfolio:
$100 million and up
Breakdown of funding portfolio:
Area of Education:
Approximately 76% of portfolio invested in higher education, 12% in Basic Education, and remainder dedicated to other areas of education.
48% Latin America/Caribbean; 13% East Asia Pacific; 5% Middle East North Africa; 5% Sub-Saharan Africa; 8% South Asia; 7% Europe & Central Asia; 14% Global
Type of Investment:
75% Debt; 19% Equity/Quasi Equity; 6% Guarantees
Priorities and preferences for linking with other Funders Platform members
Training/toolkits for management tasks (strategic planning, M&E, fundraising, connecting with public sector) to share with supported organizations