The International Finance Facility for Education (IFFEd) is a powerful financing and impact engine for global education and skills development. It is specifically designed to tackle the education and skills crisis in lower-middle-income countries (LMICs) which are home to more than 1.2 billion children and youth, nearly half of the global total.
Photo: ADB
IFFEd leverages sovereign, philanthropic and private capital seven-fold, unlocking greater affordable financing for lower-middle-income countries that want to invest in education and skills. The mechanism was developed by a consortium of multilateral development banks (MDBs) and bilateral donors and launched by the UN General Secretary during the 2022 Transforming Education Summit.
IFFEd transforms every $1 of donor resources into $7 of education financing, acting as an insurer for the MDB’s which enables them to borrow, and therefore lend, more at better rates.
Its dual multiplier design not only amplifies limited donor funds to increase the pool of education financing but also ensures that the unlocked financing is used to scale effective education reforms driven by outcomes and evidence.
Connecting finance to human impact
Education should not be treated as a social investment; it should be funded as the ultimate economic engine behind growth and productivity.
- Education must become a jobs strategy
- Skills must become an economic growth strategy
- Human capital must become the core infrastructure for national competitiveness
Lower-middle-income countries need sufficient, affordable, and scalable financing to build the education and skills systems that can convert that potential into productivity, jobs, innovation, and inclusive growth.
IFFEd is not just about unlocking more funding. It is about smarter financing: using guarantees, grants, and MDB partnerships to make scarce donor resources go further, lower the cost of capital for countries, and link investment to real education and skills outcomes. The next great growth story will be written by countries that finance human potential at scale.
