A pioneering fintech partnership is set to transform education financing in Uganda, providing much-needed relief for families struggling with school fees.
The collaboration, involving Ugandan financial technology company Furaha, Opportunity Bank, and MTN Mobile Money, aims to improve access to education by offering seamless digital loan services. Through the initiative, Ugandans can obtain loans from Opportunity Bank via MTN Mobile Money, enabling direct and timely payment of school fees.
Addressing a Growing Crisis
The move comes against the backdrop of a significant education financing gap in Sub-Saharan Africa. According to UNESCO, the region faces an annual shortfall of $70 billion in education funding—part of a broader $97 billion deficit required to achieve Sustainable Development Goal 4 (SDG4). Underfunding and inequitable resource distribution have left millions of children without access to quality education.
A 2023 UNESCO report revealed that governments in low- and lower-middle-income countries spend an average of just $55 per learner each year, compared to $8,543 in high-income nations. Official development assistance for education totaled $16.6 billion in 2022, but less than a third of this aid was allocated to basic education in Sub-Saharan Africa, where more than half of the world’s out-of-school children reside.
In Uganda, where over 60% of adults worry about school fees, financial constraints remain a significant barrier to education. Despite the government’s free primary education program, families still face costs for uniforms, exam fees, and additional school expenses. These financial burdens force many children out of school, exacerbating the country’s education crisis.
A Digital Solution for School Fees
“We’re thrilled to partner with like-minded organizations to drive positive change in our community,” said Yustus Aribariho, Furaha’s co-founder. “Our goal is to impact over 10 million children in Sub-Saharan Africa within the next five years.”
Since launching, Furaha has disbursed over 1 billion Ugandan shillings, supporting more than 2,000 learners in the past five months alone. The platform allows parents to secure loans and transfer payments directly to schools via MTN Mobile Money, eliminating delays and financial stress for both families and educational institutions.
Denis Musinguzi, CEO of Furaha, highlighted the challenge schools face due to late payments. “Typically, only 30% of targeted school fees are collected on the first day of term. Our solution ensures schools receive 100% of their fees on time, benefiting parents, schools, and students alike.”
A Step Towards Equitable Education
Opportunity Bank Uganda’s CEO, Owen Amanya, reiterated the bank’s commitment to financing education, particularly in rural and marginalized areas. “We focus on supporting communities that struggle with access to education, ensuring financing solutions reach those who need them most.”
Hellen Kirungi, MTN Mobile Money’s Senior Manager for Savings and Loans, described the initiative as a game-changer. “We believe that no child should miss school due to financial constraints. This partnership is a significant step in bridging the education gap in Uganda.”
The Ugandan Ministry of Education continues to face a funding shortfall, with an estimated UGX 309.16 billion required to sustain universal primary education and an additional UGX 87.6 billion needed to facilitate government aid for 400 schools. The fintech partnership, however, represents a crucial innovation in tackling these financial barriers and ensuring that more children gain access to education in Uganda and beyond.
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