The Professional Edition 13 | November November 2024 | Page 34

SUSTAINABILITY

The Power

of education-focused investments

By David Crosoer , Chief Investment Officer at PPS Investments

Imagine a world where the right to basic education is not just a constitutional promise but a lived reality for every child . Yet , according to the United Nations Educational , Scientific and Cultural Organisation ( UNESCO ), an estimated 260 million children are denied this fundamental right , with millions facing profound barriers to accessing quality education . This is regardless of around 80 % of the world ’ s countries acknowledging this right in their constitutions .

In developing countries like South Africa , the struggle is particularly acute . In rural areas , children often must walk long distances without the safety of reliable transportation . When they arrive at school , they endure dilapidated buildings , overcrowded classrooms and a shortage of qualified teachers . South Africa ’ s official Census 2022 revealed that as many as 5.2 million children of school-going age do not even go to school , with one of the reasons given being the poor state or lack of education facilities .
To add to the problem , for many , the school day is shadowed by hunger , as meal programmes remain inconsistent or altogether absent . This harsh reality creates a relentless cycle that not only hampers learners ’ ability to learn but also traps them in poverty , stealing their hope for a brighter future .
The drop-out rate in South African schools is significant . The Department of Basic Education estimates that between 42 % and 56 % of learners drop out sometime in their school career . The BEE News published by the BEE Chamber , reports that according to the Zero Dropout Campaign , this number is closer to 63 %, which means that in reality , only 37 % of Grade 1 learners ultimately pass Grade 12 . This results in that , as per Census 2022 , less than a third of South Africa ’ s population ( 32.5 %) has a matric certificate or equivalent .
South Africa , however , is not the only country facing this problem . The global scale of the educational crisis is so severe that it has become a central focus of the United Nations ’ s Sustainable Development Goals ( SDGs ). Specifically , SDG 4 calls for inclusive and equitable quality education for all , underscoring education as a fundamental right and an essential lever for development . The goal is not just to increase access to education but also to ensure that education systems worldwide equip students with the knowledge and skills needed to succeed in the modern economy .

“ This harsh reality creates a relentless cycle that not only hampers learners ’ ability to learn but also traps them in poverty , stealing their hope for a brighter future .

This
is
where
investment
houses can make a substantial
difference .
By
channelling
capital
into
educationfocused
initiatives , they can
help bridge
the
education
gap
while
still
achieving
financial returns . This form of
impact investing is growing in
importance as investors realise
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