Prodigy Finance, a global higher education finance company, has launched a $30 million Blended Finance programme in collaboration with The Standard Bank of South Africa Limited and Allan & Gill Gray Philanthropies to maximise the provision of international education loans, combining a grant from Allan & Gill Gray Philanthropies and senior financing from Standard Bank.
According to the firm, for every $1 of capital donated by the philanthropies, $4 of capital will be provided to students by banks. This efficient method supports significantly more students than traditional scholarships, aiming for substantial social impact while delivering financial returns to the bank.
“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,” said Justine Crommelin, Standard Bank SVP, Securitisation Debt Capital Market.
Prodigy Finance aims to increase the Blended Finance programme to $200 million over the next three years, amplifying its reach and transformative potential. Prodigy seeks partnerships with entities sharing their vision of combining financial innovation with social impact.
Projections by HolonIQ indicate a surge in international student numbers, with three-quarters of new graduates coming from Asia and Africa by 2050. Africa faces a youth unemployment rate of 60%, and bridging the digital skills gap could increase Africa’s GDP by 5%, according to the IFC. By focusing on African students, Prodigy Finance 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 Finance invites like-minded organisations to join in creating a more inclusive and prosperous future for all.
Prodigy Finance is reaching more students globally by expanding its loan services to include students from Kenya into its already expansive network of 120+ countries. This expansion comes at a crucial time as an increasing number of students from African countries are looking to international universities for higher education to gain the knowledge needed to succeed in the global job market.
While talent and potential are evenly distributed globally, the same cannot be said for access to top-tier education. It is particularly evident in developing countries, where many families are unable to support the educational dreams of their children due to financial limitations and a lack of collateral. Prodigy Finance’s innovative approach goes beyond traditional credit checks. They use alternative data to assess your potential for future success, making loans more accessible. This enables Prodigy to provide funding to students without a cosigner or collateral.
“We understand that funding your education is a significant decision,” said Neha Sethi, Chief Financial Officer at Prodigy Finance. “Studying abroad can be a life-changing experience, and Prodigy Finance is here to help Kenyan students take that leap. Our loans can provide these students with the financial resources they need to pursue their dream of studying abroad.”
Access to global education for students from developing countries has a positive impact on their home countries. Such graduates are able to contribute to their home communities through remittances, supporting their families and local economies. Additionally, these graduates bring back valuable skills and knowledge to their host communities, fostering greater innovation and development.
Student loans offered by Prodigy Finance are designed specifically for international students aspiring for postgraduate studies abroad. With no collateral required, competitive interest rates up to 100% coverage for the total cost of attendance, and repayment terms ranging from 7 to 20 years, the company’s loans provide students with the financial support they need to pursue their studies abroad.