Ed Partners Africa Raises Ksh 205 Million To Fund Affordable Private Schools

By Soko Directory Team / Published June 18, 2021 | 8:47 am




KEY POINTS

 Ed Partners Africa has raised US $1.9m (Ksh205 million) to expand its presence and enable the unserved affordable private schools market access to credit.


Shilling

Nairobi-based Ed Partners Africa, an affordable private schools financing company, has raised US $1.9m (Ksh205 million) to expand its presence and enable the unserved affordable private schools market access to credit.

The funds were raised from Acumen, I&P, and Zephyr with participation from existing investors.  Ed Partners is targeting affordable private schools that provide education to the low-income population and charge school fees of between $150 (Ksh16,000) and $500 (Ksh54,000) per year.

Additionally, these schools are looking for loans of between $2,000 (Ksh200,000) and $70,000 (Ksh7 million) payable for up to six years.

Ed Partners’ CEO Amos Mwangi said that the company is focusing on Kenya’s affordable private school sector which is typically starved of credit by mainstream lenders.

“Affordable privates schools have found it extremely difficult to access formal credit due to arduous application processes and limited collateral. Mainstream financial institutions lack the operational insight to lend to this school segment, further exacerbating an already credit-starved sector”, the CEO explained..

He added that  Ed Partners aims to bridge this gap through school-focused lending and through a hub-and-spoke-based model where the company’s relationship managers work closely with the school leadership through the entire credit process.

Ed Partners loans are designed for specific end-uses such as the expansion of classrooms, purchase of school buses, building sanitation facilities, etc., and are designed keeping the school cashflows and repayment abilities in mind. Ed Partners, which was founded in 2018 by Lydia Koros and David FitzHerbert, has to date offered $ 1.5 million (Ksh162 million) in loans to 142 affordable private schools, which educate 41,000 students.

Mr. FitzHerbert said that the funds will help catalyze lending to this sector at this critical time when the sector is recovering from COVID-19.

“We are excited to have Acumen, I&P and Zephyr show their faith in Ed Partners and its vision to improve access to credit to affordable private schools in Kenya. Ed Partners stand on the cusp of exponential growth and we believe that this current round will enable us to extend financing to the affordable private school segment – which is urgently needed as Kenya emerges from the pandemic.”

Ed Partners also becomes the first company to receive funding from Acumen’s recently launched Education Facility.

“Acumen is thrilled to have Ed Partners join our portfolio, as the first investment under our recently launched Education Facility. Affordable private schools are an important piece in delivering education to African children, however, they have historically been underbanked. In Kenya, and across Africa, 80%+ of private schools have never accessed a bank loan. Ed Partners’ tailored products enable the most affordable private schools to invest in quality-improving initiatives. Amos, Lydia, David, and the entire Ed Partners team have demonstrated operational excellence, especially during recent school closures. Acumen is excited to work alongside Ed Partners to further support schools in improving the quality of education children receive. ” said Abdulkarim Mohamed, Portfolio Manager, Acumen.

“I&P’s investment in Ed Partners marks our growing presence in East Africa, a few months after the launch of our Nairobi-based office. We are proud to support this new investment in the education sector, which makes up one of I&P’s focus areas. Built on a strong social mission, we believe that Ed Partners has the potential to have an important impact on the education sector in Kenya and in the long term in East Africa” said Jeremy Hajdenberg, Deputy Managing Director, Investisseurs & Partenaires





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (273)
  • July 2021 (277)
  • August 2021 (233)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (365)
  • December 2021 (46)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (271)
  • June 2019 (250)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (276)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (284)
  • November 2018 (283)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (165)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950