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© 2026 Opportunity International Education Finance functions under its US and UK affiliates. Opportunity International United Kingdom is registered as a charity in England and Wales (1107713) and in Scotland (SCO39692). Opportunity International United Statesis a 501(c)3 nonprofit.

The Growing Role of Affordable Non-State Schools in Global Education

By Natalie Davirro
A teacher taking learners through reading lessons in an Affordable Non-state School. Photo Credit: Lumor Bright Elorm/Opportunity International
A teacher taking learners through reading lessons in an Affordable Non-state School. Photo Credit: Lumor Bright Elorm/Opportunity International

One year ago, Opportunity International’s EduFinance program published the 6th edition of The State of the Affordable Non-State School Sector Report, examining the scale, growth, and financing needs of affordable non-state education globally. One year on, the report’s projections offer an opportunity to consider how these trends are likely to evolve through 2028 and what they mean for the continued role of affordable non-state education in expanding access to schooling.

Prior to joining Opportunity International’s MERL team five years ago, I, like many, largely associated the term “private school” with institutions serving relatively affluent families. I understood private education primarily as an alternative to public education, and one that was available to families with the financial means to choose it.
That perspective began to change in 2021, when I joined Opportunity International’s MERL team and began to understand the data, research, and context behind the affordable non-state school sector for the first time. In many low- and middle-income countries, affordable non-state schools are an important part of the education landscape, particularly in communities where public provision is unable to meet demand.

This perspective was reinforced by the 2021/2 Global Education Monitoring Report, Non-State Actors in Education, released this same year, which challenged several assumptions about non-state education that I had previously taken for granted. Among them was the myth that public education is universally free, when families often continue to bear costs such as uniforms, examinations, transportation, and school supplies. Another was the misguided assumption that expanding public education alone would be sufficient to meet growing demand, despite the significant financial and capacity constraints facing governments.

A teacher taking learners through lessons in an Affordable Non-state School. Photo Credit: Jason Amoo/Opportunity International
A teacher taking learners through lessons in an Affordable Non-state School. Photo Credit: Jason Amoo/Opportunity International

These questions of scale and capacity are central to Opportunity International’s The State of the Affordable Non-State School Sector Report, the 6th edition of which was published last year. Each new edition of the report provides an updated assessment of the size and trajectory of the sector, as well as the financing constraints that affect both schools and families.

The scale of the global education challenge remains significant. Approximately 263 million children are currently out of school, translating to roughly one in five school-aged children. At the same time, the number of children enrolled in non-state schools is projected to reach 334 million by 2028. Together, these figures illustrate both the scale of unmet demand for education and the growing role that non-state providers play in responding to it.

Meeting global education goals will require substantial additional resources. The report estimates a $1.8 trillion annual financing gap to achieve SDG 4. Domestic and international annual education expenditure would need to increase from $1.2 trillion to $3.0 trillion – a 117 percent increase – to enable children to complete primary and secondary education with basic levels of learning.

This is not simply a question of whether governments should spend more. Many low- and middle-income countries already devote a substantial share of their government budgets to education, while continuing to face high out-of-school rates. The scale of the additional resources required highlights the importance of considering how governments, families, non-state providers, and financial institutions can each contribute to expanding access and improving quality.

A teacher taking learners through a lesson in an Affordable Non-state School. Photo Credit: Jason Amoo/Opportunity International
A teacher taking learners through a lesson in an Affordable Non-state School. Photo Credit: Jason Amoo/Opportunity International

The data also point to a sustained role for non-state education. According to official UIS figures, the non-state sector’s share of the education market increased from 23.1 percent in 2005 to 25.8 percent in 2023. At the current rate, Opportunity International estimates that the non-state sector will continue to account for approximately 25.8 percent of the education market through 2028. This means that the non-state sector is not a marginal component of education systems in low- and middle-income countries; it is already educating a substantial share of students and is likely to remain an important part of the education landscape.

Yet enrollment growth does not necessarily translate into sufficient capacity or quality. Affordable non-state schools frequently operate with limited financial resources, making it difficult to invest in additional classrooms, infrastructure, and other improvements. Families face a different constraint: even when school fees are low, irregular or seasonal income can make it difficult to pay education costs when they are due.
These constraints represent a significant financing opportunity. Opportunity International estimates a $36.4 billion market for education financing in low- and middle-income countries, comprising approximately $9.9 billion in demand for school improvement loans among affordable non-state school proprietors and $26.5 billion in demand for school fee loans among families with school-aged children.

The report therefore points to an important role for financial institutions. Appropriate financing can help schools expand their capacity and invest in improvements, while also helping families manage the timing of education expenses. Opportunity International’s experience suggests that these financial products can be complemented by training and localized support to help school leaders strengthen their practices and improve education quality.

Learners raising their hands to answer a question in an Affordable Non-state school. Photo Credit: Opportunity International
Learners raising their hands to answer a question in an Affordable Non-state school. Photo Credit: Opportunity International

Five years after I first encountered the affordable non-state school sector, my understanding of “private school” has changed considerably. I no longer see the term simply as a marker of socioeconomic privilege or as an alternative to public education. In many contexts, affordable non-state schools are an established and important part of the education system, providing education where demand exceeds available public capacity.

Looking ahead, the trends identified in the 6th edition will continue to shape the education landscape through 2028 and beyond. As enrollment grows and financing needs evolve across countries and regions, understanding the role of affordable non-state schools, and the conditions that enable them to expand access and improve quality, will remain increasingly important. In 2027, Opportunity International plans to publish the 7th edition of The State of the Affordable Non-State School Sector Report, with updated projections extending through 2031. We look forward to revisiting these trends, updating our understanding of the sector, and sharing what the next set of data tells us about the future of affordable non-state education.

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