More than 3,700 low-fee private schools across Northern Ghana will soon gain access to affordable loans and management training through a new partnership between IDP Foundation, Inc. (IDPF) and Opportunity International. The two organisations have launched a revolving fund aimed at improving education in rural and underserved communities by offering school improvement loans and school leadership support.
Northern Ghana’s affordable non-state schools typically charge fees below the national average of $65 per term, reflecting the financial hardships families and school owners face in the region. Despite serving crucial educational needs, these schools struggle to secure financing due to high interest rates, collateral demands they cannot meet, and a lack of tailored lending products from local banks.
Corina Gardner, CEO of IDP Foundation, said the Northern Regions present an important opportunity for their Rising Schools Program. “Over 3,700 low-fee private schools are estimated to operate across the five northern regions of Ghana, yet access to affordable financing remains out of reach for the vast majority of them,” she said. Gardner noted that USAID had previously attempted to address the funding gap but cancelled their efforts early on. “We are picking up where they left off, but with a more market-driven approach.”
The partnership will work with Bessfa Rural Bank, a local financial institution, to develop loan products tailored specifically to these schools. The revolving fund will provide debt capital and credit guarantees to unlock loans for an initial 30 schools. As schools build a record of responsible borrowing, the program will offer progressively better loan terms, larger amounts, and longer repayment periods.
Andrew McCusker, Head of Education Finance at Opportunity International, said the partnership reflects their goal to promote financial inclusion and education in underserved areas. “Opportunity’s EduFinance programs have demonstrated that appropriately structured school finance can unlock growth and quality improvements in schools serving low-income communities,” he said. “By partnering with IDP Foundation, we’re using catalytic financing to reduce risk for local lenders and expand access to capital for affordable private schools, helping more children in Northern Ghana access a quality education closer to home.”
Alongside financing, the program will include capacity building for schools new to formal lending. Opportunity International will run a one-week training course based on IDPF’s Proprietor Training Manual, a nine-module curriculum covering financial literacy, school administration, and management best practices. The training was developed with Sinapi Aba Savings & Loans and refined over 17 years.
Beyond the initial pilot, the partnership aims to grow a pipeline of schools ready for investment through School Leadership Academy workshops. These workshops will identify schools capable of managing financing and growth sustainably. The results and lessons from the pilot will be shared to support a wider expansion of the Rising Schools Program in collaboration with Ghana’s Ministry of Education and its agencies.
“Opportunity International shares our commitment to reaching the schools and communities that have been left behind by traditional finance,” Gardner said. “Together, we are laying the groundwork for something much bigger.”
Northern Ghana’s affordable non-state schools play a critical role in expanding education access where public schools are limited or overcrowded. Yet the financial barriers have long hindered their capacity to improve. This partnership offers a new model aiming to break that cycle by combining tailored finance and practical support for school leaders.
According to Joy Online.
