Chancen International GmbH aims to remove financial barriers to education. Through a co-operation with 12 private universities in Germany, Chancen offers Income Share Agreements (ISAs) to students wishing to pursue studies in one of the partner universities but with challenges finding suitable financing to cover tuition fees. Under the ISA approach, Chancen covers tuition payments for students, with the agreement that students will repay such tuition with a pre-defined percentage of future income. This reduces the risk of students becoming over-indebted or facing strict repayment plans that do not match future income. The sustainability of the underlying Chancen fund is reliant on accurate forecasting of the average future repayment capacities of students so that “fair” and affordable repayments can be made and the fund can continue.

Chancen planned to transfer the same principles used in Germany to Africa in general and, in particular, to Rwanda, where initial disbursements had already taken place in cooperation with a Technical and Vocational Education and Training (TVET) college. During this process, Chancen contracted IPC for assistance in formulating their business case to potential investors and establishing how business projections should be performed and presented.

IPC conducted an initial assessment with Chancen to become better acquainted with their model and operations, reviewed documentation, and then conducted a strategic workshop at Chancen headquarters in Berlin with management and staff to further explore and address these issues and to be better prepared to face the challenges prevailing in the African context.