Innovative finance to catalyze more and better funding for education
The GPE Multiplier is a US$300 million innovative finance instrument that provides an incentive and the financial resources to catalyze more and better investment in education.
Approved by the GPE Board in June 2017 and scaled up in June 2018, the GPE Multiplier enables partner countries to invest additional resources in education, increasing total support for a critical sector.
A country can access its allocation by mobilizing at least US$3 in new external financing for every US$1 from the GPE Multiplier.
Since 2018, 16 countries have secured more than US$137 million in allocations from the Multiplier, which has mobilized close to US$560 million in reported cofinancing in support of quality education from regional and multilateral development banks, bilateral donors, foundations and other development partners.
How does the GPE Multiplier work?
In line with GPE's needs-based approach to education sector funding, allocations are based on a country's school-age population. Allocations account for national capacity to absorb funds and, where appropriate, debt sustainability.
The GPE Multiplier works 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 or bilateral donors. It can also work alongside other, non-traditional sources of development finance, including private capital.
The instrument minimizes transaction costs: there are no additional demands for eligible countries to access the fund beyond GPE's existing funding model requirements.
In June 2018, the Board of Directors approved the following countries as eligible for up to the maximum allocations from the GPE Multiplier. These allocations remain available for allocation through end 2020.
Countries in blue have received an approved multiplier grant, and countries in green have had their expression of interest to access the GPE Multiplier approved. The figure in parentheses shows the size of the grant received or secured, which may be up to the total available. In principle, countries that have not accessed their full Multiplier envelope may do so by catalyzing further co-financing.
|Maximum Country Allocation from the GPE Multiplier (MCAM)||Country|
|Up to US$25 million||
|Up to US$15 million||
|Up to US$10 million|
|Up to US$5 million||
|Up to US$1 million||
Securing a Multiplier allocation
Securing a maximum country allocation from the GPE Multiplier (MCAM) is not automatic, and depends on meeting several criteria, including sourcing new and additional external support for the education sector plan (ESP). Each US$1 from the Multiplier, up to a country’s allocation ceiling, is expected to unlock at least US$3 in new, external funding.
Countries eligible to access the Multiplier can secure an MCAM by submitting an Expression of Interest. For full details and further information, please see the Multiplier application guidelines or contact the Secretariat or Country Lead.