In a small community in Mubende, Central Uganda, St. Lucia Preparatory School stands as a testament to the power of vision, determination, and the right support. Founded in 2011 by Mr. Seleko Charles, a teacher with a dream to redefine education, the school started humbly with just two students—a boy and a girl. Over the years, it has grown into a thriving institution serving over 750 students, providing not only academic instruction but also vital vocational training to equip children for the challenges of tomorrow.

When Mr. Charles first started the school, he faced daunting challenges. Funding was limited, community perceptions about education were narrow, and many families prioritized traditional academics over practical skills. Moreover, as a private school in a rural area, St. Lucia struggled with financial sustainability, an issue compounded by Mr. Charles’ lack of formal business training.

These limitations, alongside St. Lucia's clear potential to positively impact education in its community, are one of the reason why Opportunity International designed Mityana as an 'Opportunity Zone.'

What is an 'Opportunity Zone?'

The 'Opportunity Zone' initiative reflects Opportunity International's commitment to addressing the needs of those in underresourced communities with lower incomes by combining Opportunity's programs - including Education Finance - to foster sustainable futures in a targeted area. These efforts focus on enabling families, including farmers, to grow their businesses and provide their children with access to quality education.

The EduFinance Financial Product team's work in the Mityana Opportunity Zone aims to improve access to capital for low-fee schools. By addressing critical challenges in financing, the project supports the quality and availability of education for underserved communities.

Understanding the Mityana Opportunity Zone

The Mityana Zone encompasses nine districts in central Uganda, spanning Buganda South and Buganda North subregions. These districts—Masaka, Kalungu, Lwengo, Ssembabule, Bukomansimbi, Kyotera, Mubende, Mityana, and Kasanda—are home to approximately 3 million people, with 41% of school-age (2–17 years).

In this region, there are an estimated 2,723 privately owned primary and secondary schools, with 89% classified as "low-fee schools.” These are privately owned institutions that charge tuition affordable to low-income families. Fee thresholds are aligned with the World Bank's poverty lines, ensuring inclusivity even for families making significant financial sacrifices.

The Mityana Zone faces significant challenges:

• Poverty Rates: Monetary poverty affects 10.25% of the population, while 24.7% experience multidimensional poverty, equating to 0.74 million people.
• Enrollment Rates: While primary education enrollment is relatively high at 84.2%, secondary school enrollment drops drastically to 33.5%.
• Completion Rates: Only 60% of students complete primary school, with rates declining further to 25% by Secondary Five (Upper Secondary).
• Literacy: The adult literacy rate is 76%, underscoring the need for systemic improvements in education access and quality.

Barriers to Financing Low-Fee Schools

Based on survey data collected at School Leadership Academy workshops by the EduFinance team, the main challenges unbanked schools face in accessing finance include: 

Using a sample of 550 low-fee schools with no prior access to finance, our team gathered data during School Leadership Academy workshops, revealing:

EduFinance Interventions

EduFinance has implemented targeted interventions to address these barriers:

1. Engage Financial Institution Partnerships to increase Mityana Zone EduFinance Lending: EduFinance is partnering with five financial institutions—OBUL, Centenary Bank, UGAFODE, Letshego, and VisionFund—to increase lending to unbanked schools.

• Branch-level staff training to improve awareness of the education sector's potential and refine customer care techniques.
• Grants support EduFinance Champions at partner institutions, enhancing communication and impact monitoring.

2. Offer Practical & Relevant School Leadership Academy Training to School Owners: Since March 2023, EduFinance has conducted 18 School Leadership Academy workshops across the nine districts, reaching over 1,100 schools. These workshops focus on:

• Financial sustainability skills, including budgeting and revenue management.
• Navigating the loan application process.
• Building relationships with district education offices for better school registration support.

3. Provide Schools with Tailored Small Group and Individual Capacity Building: Schools receive tailored training to address specific barriers, such as registration processes, financial management, and business planning.

St. Lucia Preparatory School Partners with EduFinance

St. Lucia is one of the schools in the MItyana Zone that has taken advantage of these offerings. As Mr. Charles explained, the turning point came when St. Lucia partnered with the EduFinance program through VisionFund. This collaboration provided the school with access to credit, tailored training, and essential skills that have since transformed its trajectory. With financial support, the school expanded its facilities and introduced resources for vocational training, aligning with Mr. Charles’ vision of a well-rounded education model.

Through EduFinance’s School Leadership Academy workshops, Mr. Charles gained practical skills in budgeting, revenue management, and loan application processes. Tailored training sessions addressed the school’s specific challenges, equipping Mr. Charles to lead St. Lucia toward sustainability.

Today, vocational training programs like poultry farming, brick-making, hairdressing, and basket weaving have become cornerstones of the curriculum, empowering students to support themselves and their families. This transformation has fostered trust and pride within the community, as parents and teachers alike embrace a new, entrepreneurial mindset.

Reflecting on his journey, Mr. Charles shared, “We are not just teaching; we are building futures.” St. Lucia Preparatory School exemplifies how vision, opportunity, and partnership can transform not just a school, but an entire community.

Outcomes in the Mityana Opportunity Zone

Preliminary outcomes from the EduFinance Financial Product team's interventions in the Mityana Opportunity Zone project indicate:

• 56% of project schools have applied for loans for school improvement
• 27% of project schools in the zone have received loans.
• 94% of project schools applying for loans have not faced rejection by financial institutions, indicating improved loan-readiness.
• Significant improvements in bankability
• Overall enhanced financial knowledge and improved relationships between schools and financial institutions.

Based on a follow-up survey with 686 previously unbanked schools, our team collected data showing: 

The Mityana Opportunity Zone project demonstrates the transformative power of targeted interventions in education finance. By addressing systemic barriers and fostering collaboration, the initiative is driving measurable improvements in access to quality education. Impact stories like that of St. Lucia Preparatory School illustrate how these efforts are not only changing schools but also empowering communities. As the project evolves, it serves as a model for scaling similar efforts across other underserved regions. 

Looking ahead, the EduFinance Financial Products Team is committed to deepening its impact in the Mityana Zone through further school leader training and strengthening partnerships with financial institutions.  Globally, the team plans to leverage the insights gained from the Mityana Zone to replicate these strategies in other high-need, high-potential regions, ensuring that more low-income families have access to affordable, quality education in underserved communities worldwide. 

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