GPE Multiplier

Innovative finance to catalyze more and better funding for education

The GPE Multiplier is a new US$100 million per year innovative finance facility that provides an incentive and financial resources to catalyze more and better investment in education in the world’s poorest countries.

Education is a critical national investment to raise incomes, tackle deep-seated inequality, meet obligations for the fundamental rights of children, and enable shared success in delivering the Sustainable Development Goals. Unlocking these gains requires robust, consistent support from national governments and donors.

What is the GPE Multiplier?

Approved by the GPE Board in June 2017, the GPE Multiplier is a new financing window to enable partner countries to invest additional resources in education, increasing total support for education in challenging, resource-strapped settings. A country can access it by mobilizing at least US$3 in new external financing for every US$1 from the GPE Multiplier.

How does the GPE Multiplier work?

In line with GPE's needs-based approach to education sector funding, allocations will be based on a country's total number of enrolled primary and lower secondary students.

Allocations will also account for national capacity to absorb funds and, where appropriate, debt sustainability. The facility's US$100 million pilot program is expected to expand to US$300 million by 2020.

The GPE Multiplier can work alongside other sources of external funding. It can be invested as a grant or used to lower the interest rate on concessional lending, for example from multilateral development banks including IDA, regional development banks and bilateral donors. It can also work alongside other, non-traditional sources of development finance, including private capital.

The GPE Multiplier keeps transaction costs low: there are no additional demands for eligible countries to access the fund beyond GPE's existing requirements.

How does the GPE Multiplier work?

Which countries are eligible for the GPE Multiplier?

During its meeting in Ottawa in June 2017, GPE’s Board of Directors agreed that the following countries are eligible for funding from the GPE Multiplier:

  • Countries eligible for education sector program implementation grants (ESPIG) that are subject to the cap of US$100 million
  • ESPIG-eligible countries that have an allocation of less than US$10 million or are classified as vulnerable lower middle-income countries
  • Non-ESPIG eligible countries that are approved as eligible for other forms of GPE funding, such as education sector program development grants

The GPE Secretariat will reach out to eligible countries based on these criteria and provide further information about the application process.

Allocation process

GPE is working with partner countries to make indicative allocations from the GPE Multiplier during 2017 for disbursement in 2018. These will reflect the diversity of GPE’s developing country partners.

The GPE replenishment cycle beginning in 2018 kicks off a new era in education financing to reverse the trend of declining investment in education in the world’s poorest countries. The GPE Multiplier is a key element in this strategy, creating a platform for donors to multiply their impact while ramping up support for countries that get low levels of external support despite their persistent education funding needs. 

Funding the GPE Multiplier

GPE needs contributions from traditional and new donors of up to US$300 million to support the GPE Multiplier over 2018-2020 to reach its goal of US$2 billion a year by 2020.

This can be provided through unrestricted contributions to the GPE fund that finances GPE’s core work, or through targeted contributions to the GPE Multiplier.

External funders can also provide grants, loans, and other instruments alongside the GPE Multiplier to deliver a step-change in support for national education sector plans through co-financing or pooled funds.