Regional Education Finance Fund for Africa (REFFA)

Initiated by KfW Development Bank and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the Regional Education Finance Fund for Africa (REFFA or the Fund) is the first regional education finance facility for Africa. It aims to provide customized financial services for the education sector in a demand-oriented, financially sustainable, and socially responsible manner.

As part of this innovative approach, the Fund and its Technical Assistance Facility partner with financial institutions by supporting them in the development of sustainable financial services for private education providers as well as learners and their families. In doing so, the Fund and the participating financial institutions help improve access to quality education and affordable education, as well as contribute to the socially responsible economic development of African countries.

REFFA provides funding for on-lending to financial institutions in Africa. Financial intermediaries – including banks, microfinance institutions, credit co-operatives and other finance companies – across Africa can receive funding and Technical Assistance (TA) for the expansion and/or development of their education finance portfolios. Financial institutions are key to meet the fund’s impact and sustainability targets as they are the preferred channel to deliver tailored financial products to the education sector. Capacity building and funding of local financial intermediaries ensure long-term access to financing for the education sector.

With its unique approach of aiming for improved, target group-oriented access to financial services for education, the Regional Education Finance Fund for Africa (REFFA) not only has a demonstration effect, but also helps to promote the development of the financial system in the region by opening up a new market segment for the participating financial institutions.

The Fund is open to all types of financial institutions in Africa that have an interest in catering to the education sector. The Fund’s partners and investors place great value on responsible banking practices such as good governance, client protection principles, and social and environmental standards.