Prodigy Finance, a leading global higher education finance company, announced the launch of their $30 million Blended Finance programme in collaboration with The Standard Bank of South Africa Limited and Allan & Gill Gray Philanthropies to support students from Africa for their overseas study plans.
The programme 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, Prodigy Finance said in a media release.
For every $1 of capital donated by the philanthropies, $4 of capital can be provided to students, it said.
Net proceeds from student repayments will 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,” the student lender said.
Justine Crommelin, Standard Bank SVP, Securitisation Debt Capital Market, said 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,” he said.
Prodigy Finance said it aims to increase the Blended Finance programme to $200 million over the next three years, amplifying its reach and transformative potential.
It will also seek partnerships with entities sharing their vision of combining financial innovation with social impact.
Africa faces a youth unemployment rate of 60 percent, and bridging the digital skills gap could increase Africa’s GDP by 5 percent, according to the IFC.
By focusing on African students, Prodigy Finance said it 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,” said Cameron Stevens, CEO of Prodigy Finance.
The Blended Finance Programme also addresses gender disparities in education and leadership, aiming to increase the number of women pursuing postgraduate education, Prodigy said.
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