Social impact bonds to fund student financial aid program in South Africa
The pilot phase of the Ikusasa Student Financial Aid Programme (ISFAP) is on track to be rolled out in the 2017 academic year.
Two hundred million rand has been raised for the pilot project, in which 2000 students have already been selected to participate said Leon Campher, chief executive of the Association for Savings and Investment South Africa (Asisa).
ISFAP, backed by government and the private sector, is to help fund the tertiary education of poor and the so-called missing middle students. Missing middle students, many of whom participated in the #FeesMustFall protests, are from families considered too wealthy to receive government loans or bursaries and too poor to fund their own studies.
Campher, who was reporting back to industry stakeholders after a CEO Initiative Meeting, said students whose family units earn less than R600 000 per annum would be eligible to receive assistance.
To qualify, students must also intend reading for degrees or qualifications in scarce-skills professions such as engineering, medicine, nursing and artisan trades.