Our model

IFFEd has a dual multiplier effect delivering both financial innovation and education impact. It both multiplies the financing available for education and skills programmes in lower middle-income (LMICs) countries while ensuring that the additional financing generated is used to deliver evidence-based reforms that multiply education impacts on the ground.

teacher writing on a whiteboard

IFFEd partners with donors, philanthropy, development organisations and multi-lateral development banks (MDBs) to unlock additional financing for education and skills programmes in LMICs; and then supports LMICs to design and deliver evidence based reforms that measurably improve education impacts.

The dual multiplier

IFFEd increases the affordable finance available to lower-middle-income-countries by combining donor contributions and then multiplying them seven fold through the multilateral development banks (MDBs).

IFFEd’s transformative capacity comes not only from its financial innovation but its ability to scale educational impact. Maximising the investment impact is essential to delivering learning and economic impacts at scale for lower middle-income countries.

The financial multiplier

IFFEd is designed to supercharge education financing and help tackle the annual $91bn education financing gap. At the core of its financial model is a bold and innovative guarantee instrument designed to unlock billions of dollars in education financing.

IFFEd uses a combination of grants, paid in capital and guarantees, multiplying them seven fold, to create a bigger and dedicated pool of concessional capital for education and skills through the multilateral development banks. This pool of financing is more affordable for lower-middle-income countries to access than existing multilateral development bank or commercial financing.

The model not only enables donor governments to do more for less with limited resources, but also increases the amount of affordable finance available and reduces borrowing costs for LMIC governments while incentivising them to prioritise investment in education and skills.

Additionally, through deliberate design, IFFEd’s overheads are funded by guarantee fees and the interest income it generates on investments, ensuring that 100% of donor contributions are leveraged to invest directly into education and skills projects.

IFFEd value model

The education impact multiplier

It’s not enough just to increase the availability of affordable financing; the financing needs to be structured around measurable and improved education outcomes to tackle the learning and jobs crisis. IFFEd ensures that every dollar goes toward projects that deliver:

  • Project design adapted to each national context
  • Proven, evidence-based programme interventions and policy support
  • Implementation by governments and local systems at scale
  • Intermediate impact metrics to track progress long before results
  • Influencing policies that will amplify the impact of the education and skills projects

IFFEd supports programming across the full education and skills lifecycle from early childhood and foundational learning to primary and secondary education to technical and vocational educational training (TVET).

dual multiplier effect

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