Youth Employment Programs - Independent Evaluation Group

IFC has three types of investments in the education sector: directinvestments in educational institutions including construction of newbuildings and expansion of existing facilities; student loan facilities andfinancing mechanisms that benefit low- and middle-income students; andschool guarantee programs benefiting multiple schools. Traditionally, mostof IFC’s investments (70 percent) have concentrated on investments ineducational institutions (figure E.2).Thirty-eight percent of IFC’s investments in education are concentrated inLatin America (59 percent by volume), followed by Sub-Saharan Africa (figureE.3). Although most (89 percent) of LAC investments have been in tertiaryeducation, education investments in Africa were mainly in primary/secondaryeducation (62 percent). Since 2007, IFC’s investments in the MENA region havebeen increasing (19 percent of approved projects), with 80 percent of theseinvestments in tertiary education.IFC’s education strategy is focused on providing access to education inunderserved areas, and on providing employment opportunities to skilledprofessionals. In the early 2000s, IFC’s focus was on supporting directinvestments in educational institutions. For example, IFC supported auniversity in Argentina to expand in non-urban areas, as well as a universityin Uruguay to expand its classroom facilities and libraries.Over the years, IFC’s education strategy has changed from focusing oninvestments in individual institutions to providing financing throughfinancial intermediaries. Examples include a risk-sharing facility withIFC portfolio banks to provide loans to eligible private schools in Sub-Saharan Africa and a student loan program that will extend loans toFigure E.2IFC Education Investment Approvals, FY2001–2011A. By Education Level B. By Type of InvestmentHighereducation68%Othereducation6% Basiceducation26%Student loanfacilities22%School loanfacilities8%Directinvestments oneducationinstitutions70%Source: IFC Internal data as end of June 2011.128 Youth Employment Programs