Low- to Mid-Fee Schools

Low- to Mid-Fee Schools

Photo by UNDP Tanzania

Low- to Mid-Fee Schools
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 and operate independent and cost-effective private school chains on the primary and secondary level targeting the growing middle class in the urban centres at a low- to mid-fee price level. The schools either run as commercial entities where a private actor owns and operates the entity or via a public-private partnerships where the entity is government-owned but managed and operated by the private sector. For the latter case, the government provides the necessary infrastructure, such as repurposing abandoned and / or underutilized buildings and renting them to users.

Expected Impact

Improve access, equity and quality in primary and secondary education especially for low- to middle-income households in urban centers.

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).
> 25% (in GPM)
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.
Medium Term (5–10 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.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Industry, Innovation and Infrastructure (SDG 9)
Sector Sources
  • 1) World Bank, 2021. Tanzania Economic Update. Raising the Bar for Achieving Tanzania’s Development Vision. 2) United Republic of Tanzania, 2016. National Skills Development Strategy 2016/17 – 2025/26. 3) United Nations Educational, Scientific and Cultural Organization, 2016. Empowering Adolescent Girls and Young Women through Education in Tanzania. 4) United Republic of Tanzania, 2015. Engaging the Private Sector in Education, SABER Country Report. 5) The World Bank, 2021. Tanzania Economic Update. 6) The British Council, 2016. Tanzania’s Next Generation Youth Voices. 7) United Nations Children's Fund, 2018. Young People Engagement: A priority for Tanzania. 8) United Republic of Tanzania, 2021. Third National Five-Year Plan (FYDP 3).
IOA Sources
  • 9) Silverleaf Academy, 2022. http://www.silverleaf.co.tz. 10) East African Journal of Education and Social Sciences, 2020. Challenges on the Implementation of Free Education Policy in Tanzania: A Case of Public Primary Schools in Babati Town. 11) World Bank Group, 2020. Low-Cost Private Schools in Tanzania. A Descriptive Analysis. 12) United Nations Children's Fund, 2020. Education Budget Brief, Mainland Tanzania. 13) World Bank Group, 2014. Comparable Estimates of Returns to Schooling Around the World. 14) FEZA Schools, 2022. https://fezaschools.org. 15) R, J Brent, 2009. A cost-benefit analysis of female primary education as a means of reducing HIV/AIDS in Tanzania. https://www.tandfonline.com. 16) World Bank, 2016. Trends in returns to schooling: why governments should invest more in people’s skills. 17) Family Health International, 2018. National Education Profile Update. https://www.fhi360.org/projects/strengthening-national-education-system. 18) United Republic of Tanzania, 2014. The Education and Training Policy. 19) United Republic of Tanzania, 2008. Education Sector Development Plan (ESDP). 20) United Republic of Tanzania, 2007. Information and Communication Technology (ICT) Policy for Basic Education. 21) United Republic of Tanzania, 2016. Education Sector Development Plan, 2016/17-2020/21. 22) United Republic of Tanzania, 2019. National Education Act, Chapter 353, Principal Legislation. 23) United Republic of Tanzania, 1978. The National Education Act, 1978 (No. 25). 24) United Republic of Tanzania, 1995. Education Act No. 10. 25) Global Partnership for Education, 2020. 26) United Republic of Tanzania, 2022. Standard Incentives for Investors. https://investment-guide.eac.in. 27) Sustainable Development Goals Centre for Africa, 2020. Africa SDG Index and Dashboards Report. 28) The Borgen Project, 2018. Everything to Know About Tanzania’s Improving Economy. 29) World Bank, 2022. https://data.worldbank.org/indicator/SE.PRM.ENRR?locations=TZ. 30) Feza Schools, 2022. https://fezaschools.org/achievements. 31) United Republic of Tanzania, 2018. Education Sector Performance Report. 32) Africa Aid, 2022. https://africaid.org/tanzanias-school-system-an-overview. 33) The World Bank Group, 2015. Service Delivery Indicators for Tanzania, Education and Health. 34) SparkSchools, 2020. South Africa, Tuition & Fees. 35) Africa Portal, Tanzania, 2015. Skills and Youth Employment. A Scoping Paper. 36) United Republic of Tanzania, 1978. Education Act. 37) Research on Improving Systems of Education, 2020. Low-Cost Private Schools in Tanzania: A Descriptive Analysis.