Final Ghana Country Report: Market Research Project on Low Income Private Schools
Community Banks, Savings and Loans Companies and Financial NGOs need to address the following: 9 Develop understanding of the low income school businesses especially in the area of financing needs; cashflow patterns and the very act of school management. An improved understanding will contribute to the development of loan products that actually addresses the needs of the schools. A cash flow based lending for example will be more appropriate for these schools compared to collateral based lending which most of the schools are not able to afford. 9 Microfinance institutions are encouraged to support the business advisory needs of the low income schools especially through the training of school owners and managers/administrators. The training in basic business management principles, record keeping, cashflow management, procurement and staff administration will be beneficial to the schools and financial institutions. The model to be applied could be either of the following: 1. Use of MFI staff for school capacity building as is done presently by Sinapi Aba Trust (in partnership with IDP Rising School Program); 2. Partnership with business advisory services providers to provide capacity building. The provision of training from within the MFI could over stretch the resources of small MFIs and in all cases will require that Field Officers/Training Officers of MFIs have received training in general private school sector management. Payment of Advisory Services by Low Income Private Schools Unwillingness to pay for advisory service is not limited to low income private schools, it is a global SME problem. There is however a need for Advisory Service Providers and other stakeholders to establish a linkage between business performance and advisory service as a basis for improving on the culture of non‐payment for services. This can be achieved through sustained education of school owners using the vehicle of School Business Associations and Financial Institutions. A fund for capacity development set up independent or preferably linked to the proposed guarantee fund could facilitate initial cost share at different levels for different categories of low income schools. Sustainability of the fund will be addressed through increasing the counterpart funding of the low income schools as performance improves. The Need for Increased Monitoring of Private Schools in General The monitoring framework of the Ghana Education service in respect of private schools is weak and needs strengthening. Stakeholders including the Ghana National Association of Private Schools (GNAPS) have complained about this. The current situation in which private schools ‘emerge’ especially at the basic level without adequate control and monitoring has to be addressed. An improved monitoring framework especially at the metropolitan, municipal and district levels will enhance the quality of the schools and their operations.
Prepared for IFC by CDC Consult Limited 84 October,2010