Institutional education finance

Institutional education finance

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Institutional education finance
Institutional education finance
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Education
Education Infrastructure
Business Model Description

Provide financing, including infrastructure and working capital, for learning institutions.

Expected Impact

Improve quality and accessibility to education.

How is this information gathered?
Updated: 15 Jul, 2021 Date of Production: 1 Sep, 2020
South Africa
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
South Africa has 1,922 registered private schools and 402 private tertiary institutions.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4)

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Sector Sources
  • 1) Amnesty International (2020). Broken and Unequal: The State of Education in South Africa. 2) Mbarathi, N., Mthembu, M. and Diga, K. (2016), Early Childhood Development and South Africa: A literature review. https://researchspace.ukzn.ac.za/handle/10413/13338 3) Ilifa Labantwana and Kago Ya Bana (2018). A plan to achieve Universal Coverage of Early Childhood Development Services by 2030. 4) Organization for Economic Cooperation and Development (2019). South Africa - overview of the education system. 5) International Bank for Reconstruction and Development (2019). South Africa Economic Update: Tertiary Education Enrolments Must Rise.
  • 6) Mkhwanazi, N., Makusha, T., Blackie, D., Manderson, L., Hall, K. and Huijbregts, M. (2018). South African Child Gauge-UCT. Negotiating the care of children and support for caregivers. 7) The Conversation (2018). Proper child care helps poor working women – and it can boost economies. https://theconversation.com/proper-child-care-helps-poor-working-women-and-it-can-boost-economies-92935
IOA Sources
  • 8) Amnesty International (2020). Broken and Unequal: The State of Education in South Africa. 9) Old Mutual (2017). Schools and Education Investment Impact Fund of South Africa 2017. 10) RisCura and SAVCA (2019). RisCura - SAVCA South African Private Equity Performance Report. 11) Statistics South Africa (2019). Higher Education and Skills in South Africa. 12) Department of Basic Education (2020). School Realities 2014.
  • 13) Department of Basic Education (2020). School Realities 2019. 14) Hofmeyr, J and Schirmer, S. (2015). Investing in Potential: The financial viability of low fee private schools in South Africa. 15) United Nations International Emergency Children's Fund (2019). Education Budget Brief South Africa. 16) Independent Online (2020). Budget Speech 2020: Mboweni announces R396bn allocation for education sector. 17) Independent Schools Association of Southern Africa. State subsidies for independent schools. https://www.isasa.org/state-subsidies-for-independent-schools/
  • 18) Interview with Ryan Harrison, Kaizenvest South Africa, 19 January 2021. 19) United Nations International Emergency Children's Fund. Education - South Africa. https://www.unicef.org/southafrica/education 20) South African Government (2019). South Africa Voluntary National Review: Empowering people and ensuring inclusiveness and equality. https://sustainabledevelopment.un.org/content/documents/23402RSA_Voluntary_National_Review_Report___The_Final_24_July_2019.pdf 21) Statistics South Africa (2019). Sustainable Development Goals: Country Report 2019 - South Africa. http://www.statssa.gov.za/MDG/SDGs_Country_Report_2019_South_Africa.pdf