“Providing school fees loans to parents will help Ugandans to keep their children in schools and this will help to reduce the high rate of school dropouts and education Illiteracy,” said Andrew McCusker, head of Education Finance, Opportunity International.
McCuster was speaking during the 2019 Education finance conference held at Speke resort Munyonyo last week.
The conference was aimed at bringing together the financial institutions, foreign investors in education, stake holders and heads of education in banks, bankers and teachers.
The three-day conference highlighted the economics of lending, lending profitability to schools, reducing portfolio risk, knowing your client and how to improve education quality.
This is in addition to business case for student lending, how to grow your education portfolio, how financial institutions can access capital for education lending which was wrapped up with a school visit.
“Uganda is a great market for education finance because it has very young population growing very quickly which means many young people are in schools, encouraging schools to expand. As small schools in Uganda are a trying to raise finance to build new class rooms, washrooms and dormitories and also buy school assets for affordable and friendly educations for Ugandans. It’s for that reason that Opportunity International is very active in Uganda with education financing.” McCuster noted.
He says that they have short term loans given to parents that take three or two months for them to pay back and this has always benefited the low income countries by maintaining their children in schools.
“Uganda currently has four financial institutions working under opportunity international, these financial institutions are entitled to investing money into the educations sector. This means Uganda is more open to accessing more money for school fees and finance to build new infrastructure to encourage good learning.”
Julius Omoding, senior technical Assistance Advisor opportunity Africa, said to build the gap between financial lending institution and Uganda, Uganda should adapt different sales technique which will encourage customer relations with the lending financial institutions.
Violet Matovu, head teacher, Jordan Crosser schools Matugga, a beneficiary of Opportunity International and Educations Financing says that she has built more class rooms for her pupils, something that has improved the learning environment.
Alex Ahabwe, Education finance Manager, Opportunity Bank Uganda says his bank treasures client relations management which makes them have good conditions for lending to their customers.
By George Piwang