Edu-Loan & Circle Capital Ventures finalise BEE deal

TRUE PUBLIC PRIVATE PARTNERSHIP NEEDED TO UPLIFT EDUCATION

Former Vice-Chancellor, World Bank MD and businesswoman Doctor Mamphela Ramphele is the new Edu-Loan chairperson and with her background in education and development can only enhance Edu-Loan's position as a funder of affordable education finance in South Africa as well as in the rest of Africa.

Edu-Loan recently received the go-ahead from the Competition Commission and the Securities Regulation Panel for their black economic empowerment
(BEE) transaction with Circle Capital Ventures and Standard Bank.  

In terms of the transaction a new company called Circle Edu Investments, formed by Circle Capital Ventures and Standard Bank, subscribed for 10% of new Edu-Loan shares for cash.  Standard Bank sold its existing 45% stake in Edu-Loan to the new company, resulting in Circle Edu Investments owning 50.5% of Edu-Loan.

A private finance company focused on education, Edu-Loan believes this initiative is a great example of partnerships created between government, private sector and funders - making education finance affordable and accessible to those who previously had no access to financial support.

Doctor Ramphele says the private sector needs to be working hand in hand with government and public sector to promote skills and develop human capital to enable South Africa to compete effectively in the global knowledge economy.

Edu-Loan has a number of agreements in place with organisations, enabling staff to apply for a study loan, with repayments made through a salary deduction facility. The employee is enabled to both budget for the repayments and invest in their or their dependants' education.

Edu-loan's competitive pricing offers participating staff members the opportunity to obtain educational finance at affordable interest rates.

"Through Circle Capital networks, Edu-Loan will now enjoy a broader reach into the South African society, targeting people who most need to benefit from further education.  Edu-Loan's focus on education finance brings a strategic element to tackling skills shortages that are frustrating government's efforts to promote sustainable economic growth and positive transformation in the country," explains Doctor Ramphele.

"Society needs to promote growth through the raising of skills levels by converting raw talent in our young and growing population into technical skills.  Investment in education is the one sure and tested route out of poverty the world over.  Skills development will have a positive knock-on effect on all aspects of society including crime, as people will have productive careers and reap the benefits of shared economic growth."

Doctor Ramphele believes that Edu-Loan is the ideal vehicle to facilitate accelerated skills development given its track record of financing education to the value of R1.1 billion since 1996, benefiting more than 350 000 learners.   With the conclusion of this deal Edu-Loan is now fully empowered and able to make a significant contribution to the transformation of South Africa's society.