A pioneering fintech partnership is set to transform education financing in Uganda, providing much-needed relief for families struggling with school fees.
The collaboration, involving Ugandan financial technology company Furaha, Opportunity Bank, and MTN Mobile Money, aims to improve access to education by offering seamless digital loan services. Through the initiative, Ugandans can obtain loans from Opportunity Bank via MTN Mobile Money, enabling direct and timely payment of school fees.
The move comes against the backdrop of a significant education financing gap in Sub-Saharan Africa. According to UNESCO, the region faces an annual shortfall of $70 billion in education funding—part of a broader $97 billion deficit required to achieve Sustainable Development Goal 4 (SDG4). Underfunding and inequitable resource distribution have left millions of children without access to quality education.
A 2023 UNESCO report revealed that governments in low- and lower-middle-income countries spend an average of just $55 per learner each year, compared to $8,543 in high-income nations. Official development assistance for education totaled $16.6 billion in 2022, but less than a third of this aid was allocated to basic education in Sub-Saharan Africa, where more than half of the world’s out-of-school children reside.
Furaha Finserve Uganda Limited is a financial technology business which acts as a software-based intermediary platform. The company does not provide loans or credit directly, and does not operate a payment system, act as a payment service provider or issue a payment instrument.
