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Counting the cost for higher education
Less than 10 per cent of Africa's population has a chance to attain quality higher education with the lack of access to finance at the helm of it all. But are there alternative forms of financing that could help bridge this gap? Batya Blankers, CEO of Chancen International joins CNBC Africa for more.
Mon, 16 May 2022 15:11:29 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Income share agreements offer a viable alternative for students without access to traditional financing options
- Emphasis on financial literacy and onboarding processes crucial for ensuring sustainable repayment behavior
- Launch of a blended fund to attract diverse sources of capital and drive investment in student lending initiatives
Less than 10 per cent of the African population currently has access to quality higher education due to the lack of financial resources. This challenge has left many young people excluded from pursuing their academic dreams. However, there is a glimmer of hope on the horizon as alternative forms of financing begin to emerge as potential solutions to bridge this gap. In a recent interview with CNBC Africa, Batya Blankers, CEO of Chancen International, discussed the role of innovative financing methods in expanding access to higher education across the continent. Blankers highlighted the concept of income share agreements as a promising solution for students who lack the financial means to access traditional forms of funding. These agreements allow students to repay a set percentage of their income over a specified period after graduation, eliminating the need for collateral or guarantees. With a focus on financial literacy and robust onboarding processes, Blankers emphasized the importance of ensuring sustainable repayment behavior among beneficiaries of these alternative financing models. The conversation also touched upon the launch of a fund aimed at attracting diverse sources of capital to support student lending efforts. Through a blended fund structure comprising equity and debt tranches, Chancen International seeks to revolutionize the student finance landscape and pave the way for increased investment in higher education. By fostering partnerships with development finance institutions and showcasing successful repayment outcomes, Blankers aims to establish a compelling case for future commercial investments in this critical sector. As Africa grapples with the challenge of expanding access to higher education, innovative financing mechanisms offer a ray of hope for millions of young people striving to pursue their academic aspirations.
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