Investing in education and driving development

Education creates opportunities. Investing in education is among the most powerful ways to provide such opportunities to the world’s poor. Investments in human capital foster economic growth and development, higher productivity, employment and innovation. These investments also translate into greater social and gender equality when a broader cross-section of a community is given access to education. For individuals in emerging countries, education increases social mobility and is among the most powerful means of substantially improving quality of life.

Limited access and quality of education in the emerging world

Countries in the developing world are some of the fastest growing on earth with young and connected populations. However, the reality is that educational opportunities are not expanding at the same rate and there is a huge unmet educational demand, which if left unaddressed will only deepen social inequities.   According to the UN International Children’s Emergency Fund (UNICEF), 264 million children are out of school and a further 617 million are attending school but often don’t acquire the skills they need to improve their livelihood.

Bridging the education gap

Impact investing has a role to play in expanding educational opportunities for children and young adults across the developing world. Supporting access to and improving the quality of education can bridge the huge gap in educational supply and demand.  By financing education, investors can promote the sustainable provision of education financing capital to public and private sector institutions, parents of students, and students themselves.

Read about the Regional Education Finance Fund for Africa and access our latest Impact Report here.