By Joe Dutra
We are in a global crisis.
More than half of children in low- and middle-income countries cannot read well enough to understand a simple story by the end of primary school (UNESCO). When you focus on low-income countries alone, that figure rises to 80%.
This World Literacy Day, we at Opportunity International are reflecting on the fact that literacy is the foundation for a prosperous livelihood and are one of the best ways to break the cycle of generational poverty. We see this as both a challenge of access and quality—issues that begin at the infrastructure level. In many low-income countries, public schools lack the resources, trained teachers, and learning materials needed to deliver meaningful education.
A Proven Solution: Low-Cost, Non-State Schools
Opportunity’s Education Finance (EduFinance) program has already helped more than 17 million children access quality education across 32 countries, with nearly 800,000 loans disbursed and 83% of schools reporting improved quality.
The key? Investing in affordable non-state schools.
Often founded by local entrepreneurs or educators, these schools serve communities where public education is unavailable or inadequate. They are nimble, community-rooted, and responsive to local needs—but face challenges of their own, particularly around financing and sustainability. With limited revenue from tuition fees, schools struggle to hire qualified teachers, expand classrooms, or upgrade infrastructure. Accessing loans is equally difficult, as many are viewed as high-risk by traditional lenders.
Yet the need remains vast. EduFinance’s 6th State of the Affordable Non-State School Sector report found that 67 million primary school-age children and 178 million secondary school-age adolescents are still out of school.
Building Sustainable Education Through Financial Inclusion
For years, Opportunity has addressed these challenges by equipping school leaders, teachers, and local financial institutions with tailored training, services, and financial products. Through partnerships with socially focused lenders, EduFinance provides:
- School Improvement Loans to expand classrooms, upgrade facilities, and hire teachers
- School Fee Loans to ensure students stay enrolled even when families face financial hardship
“When you give students choice, it sets a fire in them,” says Lucy Odhiambo, a Kenyan school leader trained through EduQuality. “But that choice must be backed by quality. That’s what we’re building.”
Driving Accountability and Improving Quality
One of EduFinance’s most powerful findings is that financial inclusion creates accountability. Financial institutions will not invest in schools that lack sound management or fail to meet standards. This drives schools to strengthen operations, which in turn improves student outcomes.
EduFinance’s EduQuality program, a three-year school development initiative, helps school leaders improve teaching and learning through strategic planning, peer collaboration, and professional development. Using the Pathways to Excellence framework, schools assess themselves across culture, management, and teaching styles—setting concrete goals for growth.
“The EduQuality Program has been transformative for us,” said Ms. Wilfrida Chepkorkor Alukulem of Hillside Riwo Academy in Kenya. “Our operational budget and strategic planning have improved, allowing us to allocate resources more effectively and create a safer, more supportive environment for our students.”
EduFinance also equips teacher mentors with tablets and digital content to cascade training to their peers, ensuring professional development reaches even the most remote schools.
Evidence of Impact
The results are striking. In Kenya, a three-year study of affordable non-state schools supported by EduFinance showed dramatic improvements in literacy rates, especially for marginalized groups. Students from lower socioeconomic backgrounds gained the equivalent of 0.53 years of additional schooling, while girls—often the least likely to be educated—gained 0.47 years.
Transforming Schools, Transforming Futures
The global learning crisis is daunting, but it is not insurmountable. By supporting low-fee, non-state schools through financial inclusion and capacity building, Opportunity EduFinance is ensuring that access to education also means access to quality education. In doing so, it is transforming schools, students, and entire futures.
