Low- to mid-fee private schooling

Low- to mid-fee private schooling

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Low- to mid-fee private schooling
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Formal Education
Business Model Description

Establish or acquire independent, low- to mid-fee private school chains in the primary and secondary education phases.

Expected Impact

Enable access to more affordable private school options and help address education access and quality needs.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
538,000 students are enrolled in private schools.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) Amnesty International (2020). Broken and Unequal: The State of Education in South Africa. 2) Mbarathi, N., Mthembu, M. and Diga, K. (2016), Early Childhood Development and South Africa: A literature review. https://researchspace.ukzn.ac.za/handle/10413/13338 3) Ilifa Labantwana and Kago Ya Bana (2018). A plan to achieve Universal Coverage of Early Childhood Development Services by 2030. 4) Organization for Economic Cooperation and Development (2019). South Africa - overview of the education system. 5) International Bank for Reconstruction and Development (2019). South Africa Economic Update: Tertiary Education Enrolments Must Rise.
  • 6) Mkhwanazi, N., Makusha, T., Blackie, D., Manderson, L., Hall, K. and Huijbregts, M. (2018). South African Child Gauge-UCT. Negotiating the care of children and support for caregivers. 7) The Conversation (2018). Proper child care helps poor working women – and it can boost economies. https://theconversation.com/proper-child-care-helps-poor-working-women-and-it-can-boost-economies-92935
IOA Sources
  • 8) Hofmeyr, J., McCarthy, J., Oliphant, R.et al. (2013), Affordable Private Schools in South Africa. 9) Hofmeyr, J.and Schirmer,S. (2015). Investing in Potential: The financial viability of low fee private schools in South Africa. 10) Statistics South Africa (2017). Education Enrolment and Achievement 2016 11) International Labor Organization (2020). COSAS calls for urgent scrapping of IEB due to inequality. 12) Department of Basic Education (1995). The Organisation, Governance and Funding of Schools - A Draft Policy Document for Discussion.
  • 13) Department of Basic Education (2015). School Realities 2014. 14) SPARK Schools (2020). Tuition and Fees. 15) Lake, L., Shung-King, M. Lake, Sanders, D. and Hendricks, M. (2019). South African Child Gauge 2019. https://www.unicef.org/southafrica/media/4351/file/ZAF-Policy-brief-child-adolescent-health-child-gauge-2019.pdf 16) Naik,S., Dipa, K. and Mkwanazi, S. (2020), Why treat private schools so special? https://www.iol.co.za/saturday-star/news/why-treat-private-schools-so-special-eae44ce6-5b19-4dd4-9761-39b029aef8ee 17) Interview with Ryan Harrison, Kaizenvest South Africa, 19/01/2021.
  • 18) South African Government (2019). South Africa Voluntary National Review: Empowering people and ensuring inclusiveness and equality. https://sustainabledevelopment.un.org/content/documents/23402RSA_Voluntary_National_Review_Report___The_Final_24_July_2019.pdf 19) World Bank Group (2017). Inclusive Innovations Providing Low-Cost Private Schooling for the Poor https://www.innovationpolicyplatform.org/www.innovationpolicyplatform.org/system/files/01%20Edu%20BMI_Low-cost%20Chain%20Schools_Jun11/index.pdf 20) Statistics South Africa (2019). Sustainable Development Goals: Country Report 2019 - South Africa. http://www.statssa.gov.za/MDG/SDGs_Country_Report_2019_South_Africa.pdf