Fin24

Affordable private education deal signed

2012-07-03 17:35

Johannesburg - JSE-listed private education company Curro Holdings signed an investment deal with Old Mutual and the PIC on Tuesday to expand private education to those who cannot afford it.

The deal would see the number of private community schools, also known as Meridian schools, increase to 11 in the next seven years, Curro CEO Chris van der Merwe said in a statement.

Old Mutual Investment Group SA (Omigsa) provided a R400m loan while Curro injected R40m into the initiative.

"This is meant to target families that earn R200 000 a year. These schools will not be built in affluent areas, as we want private schooling to be accessible to all.

"These schools, of which three are already in operation under the Meridian banner, are more accessible and affordable than other Curro schools. School fees range from R900 to R1 300 per month."

The Public Investment Corporation, Africa's largest pension fund manager, originally approached Omigsa to find ways to address a shortage of affordable schools in South Africa.

"This led to the establishment of Omigsa's schools and education investment fund of SA, which has already allocated more than R500m for education projects."

Christine Glover, head of development impact funds at Omigsa alternative investments, said the funds provided capital for infrastructure expansion and could also be used to train teachers.

Comments
  • Bulls - 2012-07-03 17:41

    Good we want to see more now, private sector should invest something to the people who made them to be.

  • willie.vanderschyf.96 - 2012-07-03 17:44

    Well done Curro.

  • Glyn - 2012-07-03 19:53

    Soon private schools will out-number government schools!

  • lynette.straten - 2012-07-03 20:17

    How is this more affordable?????? Government schooling in our area is R14,000.00 per month. If my maths is correct that is already R1,272.00 per month: excluding Uniforms, Textbooks, Stationery etc etc ...

      kelvin.straten - 2012-07-03 20:24

      Thats R14K a year

      michael.nash.52687 - 2012-07-04 11:42

      Lynette, they want to make Private Schooling more accesible to the people in the public schooling system R1300 per month is a hell of a lot cheaper than the average private school and thats what the mean... it is a bargain!!!

  • kelvin.straten - 2012-07-03 20:22

    How is this helping the poor??????? As a 43 year old man, i dont earn R200k a year, and i have qualifications and 20 years of experiance????

      Thebigguyjim - 2012-07-04 09:43

      Education will help the poor. Educated people are in South Africa's interest. A rising tide raises all the ships. That's how it helps the poor.

  • diran.pillay - 2012-07-04 07:25

    Great News

  • carel.venter - 2012-07-04 10:01

    Well done Chris. Private sector giving ex model C schools a run for their money - while providing complete education (not only training). Be blessed.

  • chris.brink.564 - 2012-07-05 08:37

    Interesting!!! It was estimated on the 702 money show that it cost the government R500,000.00 per pupil, in real terms. This is for a grade 1-12 education and it is not a quality education. Curro will do it for 130,000.00 (not adjusted for inflation) at a much higher quality and they won't inherit the infrastructure. How is this possible?

      Thebigguyjim - 2012-07-07 07:34

      They are saying that the state is hugely inefficient with our taxes, coupled with a huge dose of tender theft.

  • luleka.mtonganamzamo - 2012-07-17 16:00

    R3500 is not the same as 900 to 1300 per month these schools are not cheap

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