International Finance Corporation (IFC)
United States of America1956Multilateral Agency
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 educationEducational TechnologyGirls' EducationLow-Cost Private SchoolsSkills for WorkEducation FinancingFragile and Conflict-Affected StatesOut-of-School ChildrenPublic-Private PartnershipsSecondary EducationStudent AssessmentTeacher Training and EvaluationDeliveryFinancingPolicy & AnalysisStudent supportSchool supportPrimaryLower secondaryUpper secondaryPost-secondary non-tertiaryShort-cycle tertiaryBachelor or equivalentConducting/commissioning evaluationConducting/commissioning researchProviding funding for non-state programsProviding general sector support (e.g., sharing of best practices, networking)Providing organizational support (e.g., capacity building, M&E support)
For profitNot-for-profitNGOGovernmentCorporate programPPPPrograms ready to replicate to new settingsPrograms ready to scale upPrograms that have already scaled
Funding PrioritiesDebtEquity$1 million and upMost are investments of between 5-10 years (“Patient Capital”)$100 million and up
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
75% Debt; 19% Equity/Quasi Equity; 6% Guarantees