London-based global higher education finance company Prodigy Finance has launched a $30 million (Ksh 387m) Blended Finance programme to enhance enrollment of African students in various university courses.
The programme being undertaken in collaboration with the Standard Bank of South Africa Limited and Allan & Gill Gray Philanthropies provides international education loans by combining grant from Allan & Gill Gray Philanthropies and financing from Standard Bank.
According to the firm, for every $1 of capital donated by the philanthropies, $4 of capital can be provided to students.
Net proceeds from student repayments are reinvested in new student loans, further enhancing the impact of the philanthropies’ capital contribution.
By focusing on African students, Prodigy Finance is committed to levelling the playing field and fostering diverse global leadership.
“We aim to unlock Africa’s untapped potential. This initiative will transform countless students’ educational and professional trajectories, fostering a new generation of leaders on the continent,” said Cameron Stevens, CEO of Prodigy Finance.
Prodigy Finance aims to increase the Blended Finance programme to $200 million over the next three years, amplifying its reach and transformative potential. Prodigy seeks partnerships with entities sharing their vision of combining financial innovation with social impact.
Projections by HolonIQ indicate a surge in international student numbers, with three-quarters of new graduates coming from Asia and Africa by 2050.
Africa faces a youth unemployment rate of 60pc, and bridging the digital skills gap could increase Africa’s GDP by 5pc, according to the IFC.
Standard Bank Senior Vice President for Securitisation Debt Capital Market Justine Crommelin said this efficient method supports significantly more students than traditional scholarships, aiming for substantial social impact while delivering financial returns to the bank.
“Providing access to education is a vital and effective catalyst behind sustainable social upliftment in Africa. We are proud to partner with Prodigy as they continue with their success in empowering students to achieve their personal goals”,” said Crommelin.
The Blended Finance Programme also addresses gender disparities in education and leadership, aiming to increase the number of women pursuing postgraduate education.
