The Fund will provide tuition financing for 10,000 youth in Rwanda with future expansion to South African and Kenya
KIGALI, Rwanda, 11 May, 2022 -/African Media Agency (AMA)/- Today, Chancen International (CI) announces the first close for its $21 million Future of Work Fund (FWF). A significant move aimed at realizing African Union’s agenda 2063 which advocates for well-educated citizens and skills revolution underpinned by science, technology, and innovation.
The fund will also bolster UN Sustainable Development Goals in Africa which focuses on ensuring inclusive and equitable quality education and promote lifelong learning opportunities for all. The FWF will provide student financing for 10,000 youths, with a specific focus on women and other traditionally excluded populations. These activities align with Rwanda’s targets to create 250,000 new jobs every year through vocational training as well as Rwanda’s 2050 vision to create universal access to high quality education for all Rwandans.
According to data from UNESCO; Public spending on education, percentage of GDP in Africa is still low. The average for 2020 based on 14 countries was 4.77 percent. The highest value was in Namibia at 9.41 percent and the lowest value was in Mauritania at 1.89 percent. To further drive ethical and inclusive access to quality education across the continent, the FWF will extend its model to other countries, with Kenya lined up to be the next beneficiary.
Co-Founder & CEO of CI, Batya Blankers, says, “Our vision is to provide a fair and ethical financial product to allow students to access high quality education. Income Share Agreements evaluate an individual’s future potential in terms of credit risk rather than the traditional focus on current assets and financial standing which limits access to financial products impossible for many students.”
CI launched the FWF in 2021 with an anchor investment from the UBS Optimus Foundation, based in Switzerland. Through the FWF, high quality education institutions can access funding for each student they enrol. The FWF has now received additional investment commitments from the US Development Finance Corporation, Klett Group, Kaizenvest, Ceniarth and Cassiopeia.
Unique in the set-up of the FWF is an equity stake held by the students themselves, providing student representation at board level, which has been enabled by generous grant support from Vitol Foundation and other philanthropic donors. The FWF is domiciled in the Kigali International Finance Centre (KIFC), Rwanda.
“The Future of Work Fund is a gamechanger for student financing in Africa. The FWF allows us to reach more talented youths who otherwise would not be able to access the training needed to successfully transition from learning to earning. Given Kepler’s high employment numbers for graduates, it is clear that investing in these students is a good investment,” adds Nathalie Munyampenda, Chief Executive Officer of Kepler, a Future of Work Fund education partner.
Speaking to the need for inclusive education, Dhun Davar, Head Social Finance, UBS Optimus Foundation adds, “There is a huge need for more, better and more inclusive education in Rwanda and with a fast-growing student population we see that the FWF fills a real gap by supporting students to gain better skills and drive Rwanda’s economic development.”
Distributed by African Media Agency on behalf of Chancen International.
About Chancen International
CHANCEN International (CI) is a non-profit offering marginalised youth in Africa access to high quality skills development through ethical education financing. Students who join the Chancen community sign fair and ethical contracts – Income Share Agreements (ISA) – to repay a percentage of their salaries over a set number of years when they graduate from CI’s education partner programs.
In 2018, CI launched in Rwanda after an 18-month study to determine the feasibility of implementing the Chancen Income Share Agreement (ISA) model locally. To date they have signed ISAs with over 1,400 Rwandan youth attending Kepler and Davis College with new applications in process from their latest partner, INES. More than 75% of the current portfolio are women and 45% are from rural areas.
About Kigali International Financial Centre (KIFC)
Kigali International Financial Centre is a financial centre facilitating international investment and cross-border transactions in Africa. KIFC positions Rwanda as a preferred financial jurisdiction for investments into Africa and by providing an attractive destination for investors with a legal and regulatory framework fully compliant with international best practices.
Ntoudi Mouyelo, CIO of Rwanda Finance Ltd, the institution mandated to develop and promote the Kigali International Financial Centre (KIFC), highlighted the importance of hosting the Future of Work Fund. “The Future of Work Fund went through a rigorous due diligence from Impact Investors confirming that KIFC is transforming Rwanda as a domicile of choice for cross border investment in Africa. Additionally, the fund was designed in consultation with Impact Advisory Services in Luxemburg–experts in blended finance who will continue to support KIFC with other expertise leveraging on the partnership signed between Rwanda and Luxembourg.”
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