By Modupe Gbadeyanka
The aspirations of African students becoming the next generation of leaders of the continent may be nearing fulfilment with the introduction of a $30 million blended finance programme of a leading global higher education finance company, Prodigy Finance.
The company has partnered with the Standard Bank of South Africa Limited and Allan & Gill Gray Philanthropies.
This initiative is a first in using blended finance to maximise the provision of international education loans, combining a grant from Allan & Gill Gray Philanthropies and senior financing from Standard Bank.
It was gathered that for every $1 of capital donated by the philanthropies, $4 of capital can be provided to students, with the net proceeds from student repayments to be reinvested in new student loans, further enhancing the impact of the philanthropies’ capital contribution.
This efficient method supports significantly more students than traditional scholarships, aiming for substantial social impact while delivering financial returns to the bank.
Prodigy Finance says it intends to increase the blended finance programme to $200 million over the next three years, amplifying its reach and transformative potential.
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 60 per cent, and bridging the digital skills gap could increase Africa’s GDP by 5 per cent, according to the IFC.
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,” the chief executive of Prodigy Finance, Mr Cameron Stevens, stated.
“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,” the Standard Bank SVP for Securitisation Debt Capital Market, Ms Justine Crommelin, commented.