Education Sector

The demand for education services in emerging market countries is rising at a faster rate than governments can supply. Public school systems struggle to meet the demand for high-quality primary and secondary education. Most public schools are inadequately financed and the quality of education suffers from too many students and too few teachers per class, insufficient books and supplies, poorly constructed schools, and aging infrastructure.

The demand for higher education faces similar challenges. In addition, the inability of students in emerging market countries to pay for tertiary education limits their access to better jobs and to participate fully in a knowledge economy. Despite the current demand for long-term loans to undergraduate students, few student loan programs are available in developing countries.

The private sector is stepping in to fill the gap. The past five years have seen a considerable increase in the recognition of the significant contribution that private education can bring to emerging market countries. Many governments are actively encouraging private sector growth while remaining aware of the need to ensure that such provision meets appropriate standards and quality benchmarks. Entrepreneurs and philanthropists are bringing new perspectives and innovative approaches to the sector.

Over the past decade, IFC has become increasingly involved in education. We support the start-up or expansion of initiatives in primary, secondary, and tertiary education with a particular interest in student loan programs, e-learning, technical and vocational education and training, and other education services. We work with partners who have the ability to apply best practices, thereby promoting the growth of efficient and effective institutions that create an important public good in an economically, environmentally, and socially sustainable way. We work with emerging local and regional players that can innovate and improve the quality of services.

IFC’s role includes direct investment in companies and sharing industry knowledge and experience that affects the private education sector.