The OPEC Fund for International Development will commit $400 million to the second phase of SmartEd, expanding financing for education reforms in developing countries as governments seek to improve access to learning and address persistent gaps in education systems.
SmartEd Phase II will provide financing to additional eligible countries and support government-led programmes aimed at improving access, learning outcomes and the resilience of education systems, the OPEC Fund said.
The initiative comes as more than 270 million children and young people worldwide remain out of school, according to the United Nations, while many others lack the knowledge and skills needed to fulfil their potential.
“Investing in education means investing in opportunity, prosperity and peace. Through SmartEd we are pooling our resources with partners to help countries strengthen education systems and give more children and young people the knowledge and skills they need to build better futures based on knowledge, skills and practical expertise,” OPEC Fund President Abdulhamid Alkhalifa said.
SmartEd combines grants from the Global Partnership for Education with concessional financing from development partners, allowing governments to pursue larger education programmes on more affordable terms.
Through the GPE Multiplier, each $1 of grant financing can unlock $4 in additional concessional financing, increasing the amount of capital available for education investments in eligible countries.
The financing model is intended to help governments scale reforms while limiting the cost of borrowing for investments in education infrastructure, access and learning outcomes.
“Addressing the global education challenge requires stronger partnerships, innovative financing and action at scale. By working together we can help countries strengthen their education systems and equip the next generation with the knowledge and skills they need to fulfil their potential,” Alkhalifa said.
SmartEd was launched in 2021 as a partnership between the Global Partnership for Education and the Arab Coordination Group.
The first phase targeted $500 million in financing and supported education investments in Cameroon, Chad, the Kyrgyz Republic and Uzbekistan.
The second phase will broaden the initiative to more eligible countries, with financing directed toward reforms identified and led by national governments.
For development finance institutions, the programme also represents an effort to combine different forms of capital to increase the scale of investment in sectors where public financing needs remain substantial.
Education, according to the Fund, has been a longstanding area of investment for the Fund, which has committed about $1.5 billion to roughly 500 education projects worldwide, supporting access to education, skills development and stronger national education systems.
The new commitment adds to those investments as governments and development institutions increasingly focus on education not only as a social priority but also as a foundation for workforce skills, productivity and longer-term economic development.
