Opportunity International and Oikocredit have announced a three-year, $100 million impact investment agreement to increase access to, and quality of, education in low-income countries.

As part of the agreement, both organizations will target financial institutions serving the needs of vulnerable populations and provide financial capital and training in support of the development of the education sector in the target markets. The initiative will have an initial near-term focus on Ghana, Kenya, Nigeria, Senegal, and Uganda, and the collaboration will enable school improvement loans for classrooms, washrooms, dormitories, teachers, and transportation; support school leaders with financial products to make instruction more effective; and provide loans for school fees and tuitions to keep students in the classroom.

"Oikocredit's ambition is to empower low-income people with the choices they need to create a life of dignity," said Oikocredit interim managing director Mirjam 't Lam. "A key enabling element for this is access to education. We're proud to be partnering with Opportunity International to improve access to education for low-income people via training and financing new initiatives together with financial inclusion partners."

"Given our more than ten years of experience in the education sector in low-income countries, we know that combining tailored lending with strong training and support for financial institutions and schools will expand our signature EduFinance franchise and Oikocredit's footprint," said Opportunity International executive vice president of international programs and capital solutions Randy Kurtz. "This collaboration will enable better learning outcomes at borrowing schools, because when schools get access to capital, students do better."

(Photo credit: Opportunity International)