Navigating Student Financing: Lessons from Kibo School
Higher education is a crucial lever for human capital development. Yet, globally, access to quality university education remains limited. This problem is particularly acute in Africa, where rapid population growth is met with limited resources. Only 10% of young people in sub-Saharan Africa are enrolled in higher education, compared to 38% globally. Many who aspire to earn a degree simply can’t afford one, and those who do often graduate without the skills needed by employers.
We launched Kibo in 2021 with the goal of making affordable, world-class computer science education accessible to young Africans. Over the years, we enrolled over 140 students in our accredited BSc program and reached 2,500 students across 32 countries through introductory computing courses. Despite these successes, Kibo closed in 2024 due to challenges in finding a sustainable student financing model. This experience taught us valuable lessons, which we hope will inform future efforts to solve the education funding dilemma in Africa.
The Financing Dilemma
At the heart of higher education financing is a simple truth: someone has to pay for it. In wealthy countries, governments cover much of the cost, either through direct funding or subsidized student loans. But in sub-Saharan Africa, where the GDP per capita is just $1,650, government funding is limited and formal student loan systems are rare. This left most of our students relying on their families to cover our $2,000 annual tuition—though we only asked for $200 upfront. Even this modest upfront fee was a barrier for many. We knew we’d need to find innovative financing solutions quickly.
Exploring Financing Models
We knew that to scale, we needed innovative solutions beyond traditional tuition payments. Over the years, we experimented with several models.
Scholarships: A Starting Point
We began by offering substantial scholarships, covering 90% of tuition for our first cohort. While this helped attract students, we knew that relying on donor funds wasn't a sustainable long-term solution.
Deferred Tuition: A Promising Concept
In our second cohort, we introduced deferred tuition, where students received a loan to cover tuition and a laptop, and agreed to pay back the loan after graduation once they had a job. This approach had several advantages:
It allowed students to invest in their education without immediate financial strain.
It aligned our success with student outcomes, incentivizing us to prioritize their success and job placement.
It had the potential to create a self-sustaining pool of funds for future students.
Students were receptive to this model, but we faced a significant hurdle: where would the initial capital come from? To make deferred tuition work at scale, we needed tens of millions of dollars in patient, aligned capital.
Work-Integrated Learning: A Dual Solution
Our most exciting experiment was a work-integrated learning model. Students worked part-time as teaching assistants, community managers, and through a grant from GitLab Foundation, as Automation Assistants. The results were transformative:
Students earned while they learned, reducing their financial pressure.
Working students were among the best academic performers, and work enhanced their academic engagement
The real-world experience enhanced their learning and career readiness.
This success led us to envision a full degree program where all students would work part-time, earning enough to cover tuition and living expenses. However, scaling this model presented significant challenges, primarily in securing enough employer partnerships to support thousands of students.
A Call to Action
Our experience highlighted that African students and their families are willing to invest in education, but their capacity is limited by economic realities. Higher education is essential “human infrastructure” for economic growth. But expecting families in low-income countries to bear these costs alone is unrealistic.
Creating a sustainable path for financing requires coordination across the education ecosystem. We believe two areas hold particular promise:
Patient Capital for Student Lending
A large pool of patient capital, supported by foundations and DFIs, could make deferred tuition models scalable. Such a fund should tie continued funding to student outcomes, as demonstrated by job placements and ability to repay loans. This approach would hold institutions accountable for improving the earnings and employment trajectory of their students, and create a virtuous cycle where successful students help fund future learners.
Support for Apprenticeship Programs
We saw great potential in the work-integrated learning model. Expanding paid apprenticeship programs, with strong support from both funders and employers, could provide students with the skills and income they need to succeed. A commitment to creating tens of thousands of apprenticeships could change the landscape, by helping young Africans launch dignified careers.
Although Kibo’s journey has ended, the lessons we’ve learned can inform the next wave of innovation in African education. Africa’s working-age population is projected to reach 1.1 billion by 2034, and it is critical that we provide them with skills and opportunities to meet global talent demand. We’re hopeful that large-scale solutions emerge to fund quality higher education, so that we can bring about a prosperous future for Africa and the world.
To watch our full conversation, watch the full reflection video: Student Financing
Note: This post is part of a series exploring lessons learned from Kibo School. Click here to read the series overview and access related posts.