The business of Education in Africa 7 lucrative opportunities you can exploit in this huge and growing market

Written by smallstarter ThinkTank! unday! "# $uly "%#& ##'"(

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Make no mistake about it; education and training is big business in Africa! Why? Education is in a crisis situation in Africa as governments across the continent are overwhelmed with the huge and growing demand for quality education. he successes of !mega "chools #$hana% and &ridge 'nternational Academies #(enya% )rove that )rivate businesses can create )rofitable businesses from )roviding quality education to Africans. here are several o))ortunities for both small and big entre)reneurs to )rovide solutions and services for )rimary and secondary education* )rivate tutoring* university training* )rofessional certifications* vocational training* cor)orate+s)onsored training* )ersonal develo)ment and language training. his article discusses these o))ortunities in detail and e,)lores the factors driving the huge and very lucrative

demand for different ty)es of education and training in Africa. -ou should really take your time to suck u) this article!

Why is the demand and market for private education so huge in Africa?
$ust before we take a dive into the interesting opportunities in education and training in Africa! it is essential that you understand the drivers and factors responsible for this huge demand) *nowing why the demand is so huge will give you more room to apply your creativity to the business ideas shared in this article) These factors creating the huge demand for +uality education in Africa are as follows'

#1 - African governments can no longer meet the growing demand for quality education

According to the ,nited -ations! Africa would re+uire up to ./ billion 0every year1 to achieve its 2illennium 3evelopment 4oal for ,niversal 5rimary Education by "%#6)

4ood education is one of the basic human rights that governments around the world owe to their citi7ens) 8owever! due to the rapid rise in Africa9s population and the overwhelming demand for good +uality education! African governments are finding it very difficult to provide this basic service)

Across the continent! government:sponsored schools and training institutions face the same difficulties : poor funding! low +uality! rapidly falling standards and general system failure) 3ue to the poor reputation of public schools! more parents 0including the poor1 are enrolling their children in paid private schools even in countries where government schools offer free education) #)hoto credit. nabc.nl%

Africa has one of the fastest growing populations in the world with an annual population growth rate of nearly & per cent over the last "% years) 2ore than ;% percent of the continent9s population is below "6 years old and the continent9s birth rates remain one of the highest in the world) <y "%6%! Africa9s current population of one billion would have more than doubled to ")& billion) This trend clearly shows an explosive demand 0now and in the future1 for education) And with the current situation of many government educational institutions! it will be i mpossible to provide basic 0and higher1 education to Africans without the support of private businesses and organisations)

#2 - More Africans are betting on good education as the quickest exit from poverty 2any Africans 0young and not:so:young1 now strongly appreciate and understand the value of education and its power to lift them out of poverty) The poor and rich are investing huge amounts of money in their personal and children9s education) =n sub: aharan Africa! school fees consume more than a +uarter of a poor family>s income! covering not only tuition! but also indirect fees0 such as membership of parent:teacher associations! community contributions! textbooks and uniforms1)

0source' ,-1) 2illions of poor African families are betting to climb out of poverty using education as a ladder)

=n pursuit of the promises of a brighter future for themselves and their kids! more Africans are making enormous sacrifices to get the best education) 8owever! due to the poor reputation of public schools! more parents are enrolling their children in paid private schools even where government schools offer free education) #)hoto credit. &ridge 'nternational

Academies* (enya%

?ow:cost private schools! like the @mega chain of chools in 4hana and <ridge =nternational Academies in *enya! are spreading across the continent in response to the huge and fast growing demand for +uality education) According to an article in the Ainancial Times! parents are taking desperate measures 0and often lose their lives1 to enroll their children into private schools in outh Africa) =n several other countries like -igeria! 4hana and *enya! thousands of licensed and unlicensed private businesses are exploiting a heavily undersupplied market for +uality education and learning)

- More Africans want to be better qualified to get good !ob

opportunities

Apart from basic primary and secondary education! many Africans are investing in higher education to improve their chances of getting good paying Bobs) 3ue to high unemployment rates! the competition for good Bob opportunities is getting tougher every year) To stand a better chance of getting these Bobs! more Africans are seeking for university! professional and vocational education and training)

3ue to poor +uality education! there is a huge 0and growing1 gap between the skills and knowledge of Africa9s labour force and what is re+uired by Bob employers) To bridge this gap! millions of high school and university graduates are enrolling in private learning organisations to ac+uire additional knowledge and skills that will make them relevant to a target Bob opportunity)

Apart from the unemployed! Africans who already have Bobs are also enrolling and investing in private training courses in order to advance their careers) These training courses range from professional +ualifications 0accounting! law! =T! engineering etc1 to language programs and vocational training) We shall look at these areas in detail in the next section)

#" - #usinesses are desperate to train personnel for higher productivity To improve productivity and efficiency in the workplace! businesses are making significant investments in staff training) When staff are more productive! companies are more likely to produce more 0and better1 goods and services) This often means better financial performance and less waste) This demand for high +uality staff training is coming from both private and government organisations)

While many large organisations have developed internal training programs to cater for their staff! a huge number of businesses are relying on private training providers to support their staff) taff training often ranges from technical! managerial to non:

technical courses 0including soft skills like communication! presentation) leadership and teamwork1)

Six different opportunities in Africas education and training market

The most interesting thing about Africa9s education and training market is that there are opportunities for both small and big entrepreneurs to service this market : no matter the si7e of capital) As already mentioned above! the number of private schools and training institutions is growing fast! but many more are needed to satisfy the existing 0and future1 demand for these services) We shall now take a look at the different opportunities that entrepreneurs like you can exploit)

1. Primary and Secondary Education

@mega chools is a private primary school chain targeted at the poor in 4hana) The school runs a low:cost primary education model where parents can pay their children9s school fees on a daily basis 0Cpay as you learn91) With a daily school fee of .%)76 and more than #6!%%% pupils spread across several of its schools in 4hana! @mega is making money from educating a large number of poor children at a very low price) *en 3onkoh! the founder of @mega chools! reveals his successful approach in the short video clip below) 5rimary and secondary education makes up a huge proportion of the overall demand for education in Africa because parents are desperate to give their children a good foundation in the early years) This is very important to catch them young and get them interested in education while their learning ability is high) 2ost of the existing primary and secondary schools are either Cpoor +uality9 or too expensive for the maBority of Africans who are demanding +uality education) The @mega school model is a very practical and lucrative model that can be adopted across Africa) This is the same business model used by <ridge =nternational Academies in *enya which charges a .6 school fee per month)

=n addition to formal primary and secondary school education! there is a huge and growing demand forprivate tutors to supplement the training children get in school) 2ore parents are paying extra fees to private tutors who provide addition training after normal school hours) These extra lessons may take place at the children9s home or at a dedicated location where children in the area come to receive classes after school)

And parents are seeing remarkable results from these lessons) @n average! primary and secondary school students who receive extra classes 0private tutorship1 perform better at school and general examinations than students who only attend school)

. !niversity Education

=f the condition of primary and secondary education in Africa is bad! university education is much worse) Apart from being poorly:run! the number of universities in Africa cannot cope with the huge 0and growing1 number of university:ready students every year) =n -igeria alone! only a quarter of the #)7 million candidates who wrote university entrance exams in "%#& will gain admission 0source' 3ailyTimes1) The remainder 0if they9re rich enough1 will try to enroll in one of the few and very expensive private

universities in the country) The -igerian story is +uite similar across many African countries)

Although setting up a private university is much more capital intensive! the huge demand for university education in Africa Bustifies any business investment in the sector) African students spend upwards of , .& billion every year to pursue graduate and post:graduate university education outside the continent 0especially in Europe and , A1)

The increasing likelihood of employers to choose foreign:trained graduates over local ones is putting more pressure on the demand for high:+uality and international standard university education in Africa) 2ore parents and students are likely to prefer this option as it will be much cheaper and closer to home)

ome smart entrepreneurs are already partnering with foreign:based universities to set up satellite campuses in Africa) ome others are using distance:learning 0and online1 courses to break into Africa9s lucrative university education market) #)hoto

credit. umcconnections.org%

". #ocationa$ training

Aside from formal school education! there is a severe shortage of vocational skills in Africa) 3ue to the absence of good vocational training! there are not enough carpenters! painters! plumbers! auto: mechanics! nurses! boat builders! tailors! machine operators! TD repairmen and craftsmen 0like shoemakers! furniture makers etc)1) To support its fast economic growth! Africa will need a skillful and productive labour force 0employed and self: employed1 to produce the goods and services that will drive rapid economic growth and development over the next decade)

This shortage of skills has led to a huge influx of foreign workers from Europe! Asia and the 2iddle East into Africa) These foreign artisans and technicians 0who are usually more skillful and experienced1 are often paid higher than African workers) There is now a huge demand from a large pool of unemployed Africans who have no university education but want to develop basic vocational skills that will help them become self:employed or earn higher pay at Bobs)

Docational training often involves a lot of practical work! and as a result! may re+uire a significant investment in a workshop e+uipped with tools! e+uipment! materials and machines)

%. Professiona$ training & 'ertifications

The demand for professional training and certification in Africa is growing) 2ore Bobs now re+uire candidates to have internationally:accredited certification) Employees are also taking these certifications to advance in their careers)

The professions with the highest demand are #usiness $ %ntrepreneurship! &nformation 'echnology (&')!%ngineering! *inance $ Accounting! +aw and Management training 0including proBect management! supply chain management and several others1)

2any of these professions are strictly regulated by national and international private or government:backed organisations) These bodies often re+uire that candidates be trained according to a specific curriculum before writing the certification examinations) These regulatory bodies often give approval to private

companies to train candidates interested in getting these professional certifications) 3epending on the profession! the fees charged for these training courses can be +uite high)

=n addition to providing private training to candidates interested in professional certification! private companies can also act as testEexamination centres for international bodies) Aor a portion of the fee paid to sit for the exam! private companies get to supervise candidates and ensure that the testsEexams are properly taken)

(. Persona$ deve$opment training

2ore individuals! governments and businesses are investing in non:technical and Csoft9 skills training) The most common courses covered in this type of training include Entrepreneurship! ?eadership! Team <uilding! Fommunication! 5resentation! -egotiation! tress management! Time management! and motivation)

ome smart entrepreneurs now organi7e conferences! workshops and retreats for individuals! private and public organisations who want themselves 0or staff1 trained) A lot of these events can attract very high prices depending on the si7e! profile of invited speakers and the type of participants expected 0corporate or individual1)

). 'orporate*sponsored training
Every serious organi7ation 0private or public1 invests a lot of money in training its personnel) Apart from the huge positive effect training has on staff motivation and morale! it increases their ability to be more productive and take on more complex and difficult tasks in the work place) <ecause most organisations understand this! staff training often takes a significant portion of the annual budget in many private and public establishments)

=n addition to the normal training of staff! newly recruited employees also take up a significant portion of the training budget) 2ost times! businesses and government offices do not have the ability or capacity to train their staff internally) As a result! private training companies are often invited to train company personnel or government officers within the office location or at a designated training centre) <ecause this training goes on all year round! it makes for an interesting and lucrative business opportunity for private companies and entrepreneurs who are willing to target this niche)

+. ,anguage training

Africa9s fast growing economy is attracting a lot of foreign companies! investors! entrepreneurs! Bob seekers and tourists looking for business and leisure on the continent) ?anguage can often be a maBor barrier to doing business between African countries and foreigners)

3espite its language barriers! a lot of African companies are spreading across the continent thereby creating a need for both the employed and unemployed to be multilingual if they want to have a better advantage at Bobs) <anks! manufacturing companies and investment firms are becoming more global in their outlook) =n the coming years! candidates who can speak more than one international language will likely be favoured over other e+ually +ualified but unilingual candidates)

@fficial international languages spoken in many African countries such as English! Arench! 5ortuguese and panish are in greater demand) 2andarin 0Fhinese1 is also becoming an essential language skill given Fhina9s huge and growing trade ties with sub: aharan Africa) Aoreign companies are also interested in learning native African languages to allow them better penetrate the market)

Success tips and things you shou$d consider in starting your o-n education and training .usiness in Africa
$ust like every other endeavor! starting a business in the education and training sector re+uires +uite a bit of planning and some serious consideration) This list is by no means exhaustive but draws your attention to a couple of things you should keep in mind to succeed in this business)

+aws, rules and regulations - .hat do they require/ =n many countries! education and training are strictly controlled by the government) Although many other countries allow private participation in the education sector! you still have to follow strict guidelines for setting up a learning organi7ation) <efore you start! it9s important that you find out what the lawsEregulations re+uire in your country) These rules and laws vary from country to country) =nterested

entrepreneurs need to confirm if they re+uire any licenses! permits or registration to operate a school or learning institution)

Are there any specific si7e and space re+uirements for schools and learning institutionsG =s there an approved national school curriculumG 3o teachers need to have a certificate or minimum +ualification before they can practiceG =s it against the law to charge above a certain school feeG 3o the authorities re+uire any periodic inspections or reportsG =f you9re targeting professional or speciali7ed training! are there any associations or societies you must be registered withG =t9s important to note that training providers may need to be registered with corporate organisations and government offices before they can train for them)

0apital - 1ow much do you really need/ Although capital is an important re+uirement to take a business off the ground! it9s very possible to start a business in education at a scale you are comfortable with and can afford) 5roviding private tutorship to primary and secondary school students is a good way to enter this market at a small scale) The training could take place at the childrens9 house or at a small rented location) As you learn and expand! you may start to consider other opportunities in this market)

,nless you plan to start a university or build a dedicated learning facility! your training proBects should be based on the demand of customers) This way! you do not spend any huge amounts on rent! e+uipment or permanent training staff) 8owever! if you can find investors or banks willing to invest in your training idea! that would be great! 2ake sure you have a proper business plan in place)

+ocation $ 0ompetition - 1ow large is the pond and how many fishes swim in it/

While we admit that the opportunities for entrepreneurs to make money in Africa9s education and training market are huge! it9s important that you look out for locations with a high enough population 0demand1 and little competition) What kind of people 0young! retired! families etc1 live in your areaG Will they be interested in the kind of training you want to offerG

?et9s say you intend to start a professional certification and training business) =s there a large population of working class and employment:ready people who will be willing to enroll in your school or training facilityG Are there already other businesses offering the same training courses in the areaG 8ow strong is the competitionG What si7e and niche of the market are they servingG =s there room for your own business and others who may intend to come in laterG ?ook for a segment of the demand that is not being served and focus on it!

2artnership is key in this business3 The common challenge in every education and training business is the knowledge and experience of the teachersEtrainers) 5artnerships and alliances are the easiest ways of getting around this challenge) 2any training companies in Africa are partnering with foreign:based training providers 0such as universities1 who have the expert knowledge and experience to provide +uality training)

Aor example! *en 3onkoh of the @mega 5rimary chool chain in 4hana partnered with 5rofessor $ames Tooley! a pioneer in the low:cost private school field and a professor of education policy at -ewcastle ,niversity in the ,nited *ingdom) This type of partnership helps to improve your profile in the market and makes present and future customers to highly regard your services)

When you identify a niche in the education and training market you9d like to tackle! do a +uick research on any local and international institutes! professional bodies or

foreign training companies who have experience in providing a similar service) 5ropose to work with them as a partner or representative in your country or area) 2ost of these organisations see alliances and partnership as a +uick and easy way to increase their influence and revenues in foreign markets with little investment)

%xplore innovative teaching models and platforms The internet is changing the way traditional education and training is given) E: learning 0electronic learning1 and onlineEvirtual classrooms are some of the innovative ways of teaching a wider audience no matter your location) The traditional method of sitting in a classroom and having a teacherEtrainer talk to students and participants will gradually be replaced by more convenient methods of learning) Entrepreneurs should be aware of these trends and follow them very closely) ,demy)com and ?earnable)com are some of the interesting online learning platforms that should inspire you)

Putting it a$$ together

Education is a social business that offers the opportunity to impact millions of young African lives and make money at the same time! With its population expected to double in the next H% years! Africa9s

education market will continue to provide a huge potential to smart entrepreneurs and private businesses)

We believe that all the opportunities identified in this article can be taken further by your creativity and energy) =f you believe an education business will work for you! it9s important that you start working on a business plan as soon as possible) Iou could also choose from many more ama7ing business ideas in the<rowse ideas section of this website) #)hoto credit. mosaic/.com%

We would love to hear from you about your successes! challenges! advice and +uestions) 3o not forget to leave a comment in the section below and share this opportunity with your friends)

To your financial success!