The fintech company launches loans for African students in North America
8B Education investments has partnered with US-based Nelnet bank in a “first-of-its-kind” partnership to get more African students into North American institutions.
Although sub-Saharan Africa has the youngest population in the world, with 70% of people under the age of 30, African students made up about 4% of international students in the US in 2021/22.
One of the biggest barriers for Africans who want to study abroad is funding, according to Lydiah Kemunto Bosire, founder and CEO of 8B Education Investments.
This is a challenge Bosire, who was born in Kenya, experienced first hand. After receiving a scholarship to study at an international school in Wales, she struggled to finance higher education, but saw that students from other countries could access loans relatively easily. Despite the challenges, Bosire now holds degrees from Cornell University and the University of Oxford.
Students who get enough funding to go to university abroad often encounter “currency drama” and drop out because “the money isn’t there,” Bosire said PIE News.
8B Education Investments was launched to address these issues. The organization raised $3 million in seed funding earlier this year and plans to open another round of funding in late 2023.
Initially, only students taking STEM, accounting and finance programs in North America will be eligible to apply, but the organization plans to expand to other countries and subjects in the future.
8B Education Investments currently has teams operating in Kenya, Ghana and Uganda, where they conduct university outreach and student engagement. Funding is available to students from all African countries.
Loans are expected to be ready for launch from April 2023 onwards, around the same time students start receiving offers for the next academic year.
Students will start making loan repayments while studying, before normal repayments start six months after graduation and last for seven years.
8B Education Investments has also worked with institutions including Minerva and the University of Antigua to create risk reserve programs, where the loan is paid directly to the institution, with a portion retained in the event the student drops out. These initiatives could help universities struggling to recruit African students to get “more through the door,” Bosire said.
“The world is opening up to global talent”
The organization wants to go beyond funding and become a “curated place” for information on study abroad and career opportunities, aiming to “become a companion for young ambitious, brilliant Africans,” Bosire said.
“The world is opening up to global talent and we want to be there to shepherd African talent through the gates,” Bosire said.
