Development of technical skills through ICT for children and adolescents.
Development of technical skills through ICT for children and adolescents.
Business Model Description
Invest in the design, development and implementation of accessible and inclusive technological educational platforms for the education sector and general use.
Expected Impact
The use of EdTech will reduce the dropout rate among children and adolescents and increase access to quality education.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Cibao Norte
- Cibao Sur
- Cibao Nordeste
- Cibao Noroeste
- Valdesia
- El Valle
- Enriquillo
- Yuma
- Higuamo
- Ozama
Sector Classification
Education
Development Need
The country has the lowest learning achievement and performance in the region (1). Also, the student retention represents a challenge for the sector. In addition, they have identified the need to ensure the recovery of educational disruption by COVID-19, and reimagining education for the 21st Century. Above all, highlighting the need to guarantee quality spending (2).
Policy Priority
Quality Education for all is the general objective 2.1 of the National Development Strategy 2030, which within its lines of action is to promote the institutional modernization of the public education system at all levels, as well as to guarantee a quality education system (3).
Gender Inequalities and Marginalization Issues
30.7% of the female population has not accessed formal education due to performing domestic work at home (4).
Investment Opportunities Introduction
Currently, the DR devotes 4.0% of public spending to education. On average for primary and secondary education, the United State invests approximately three thousand dollars per student (5). Likewise, the DR is expected to invest US$ 450 million to support construction projects, knowledge transfer, remodeling, equipment, among others (6).
Key Bottlenecks Introduction
The country faces a series of challenges in the education sector that limit its development and effectiveness. The bottlenecks are associated with access and equity, educational quality in literacy, mathematics, and science, as well as inadequate infrastructure, teacher training and updating, management and governance (2).
Education Technology
Development Need
The pandemic further reflected inequality gaps and needs for quality and accessible education. Parents indicated that their children learned less through distance education. Due to low internet penetration and access to devices, there is a need to promote the use of accessible and inclusive educational platforms (7).
Policy Priority
The National Pact for Education Reform in the Dominican Republic ensures universal education and reforms at all educational levels (8). In addition, the Digital Agenda 2030 promotes the development of digital competencies, fostering the creation, adoption and dissemination of open digital educational resources and incorporating digital technologies in the education system (9).
Gender Inequalities and Marginalization Issues
The cost of the Internet can be a barrier for women and people in rural areas, making it an unaffordable service. In Latin America, 60.1% of girls and 62.4% of boys have access to the internet for education (10).
Investment Opportunities Introduction
EdTech represents innovative opportunities for the digitization of education, creating pedagogical techniques, interactive learning, education at scale, among others. As of 2020, EdTech has accelerated growth, and global spending on education technologies is expected to exceed US $404 billion (12).
Key Bottlenecks Introduction
The global education sector spends, on average, less than 4% on education technologies such as hardware, software, and services (12). The education sector wants to avoid using unproven technology solutions; being a new market, it is more difficult to use emerging technologies like Artificial Intelligence (13).
Pipeline Opportunity
Development of technical skills through ICT for children and adolescents.
Invest in the design, development and implementation of accessible and inclusive technological educational platforms for the education sector and general use.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
Over 2.5 million students enrolled at the primary and secondary school levels (19).
Government spending in 2022 was approximately US$4.3 billion. This budget has been executed for the construction of classrooms, teacher training, food services, school nutrition and health, student support, payroll for electronic devices for teachers and students (16) (17).
During COVID-19 pandemic, education spending on computer supplies had a growth rate from 2019 to 2020 of 863%. In 2022, spending on computing materials was approximately US$ 120 million and system operating expenses, teacher training, pedagogical support and other transfers exceeded US$ 600 million (18).
For the 2021-2022 school year, 2.5 million students were enrolled. Of these, 78.3% are in public schools, 20.4% in private schools and 1.3% in semi-official schools. Of this student population, 98,611 students are in semi-official schools divided into 480 educational centers (19).
Indicative Return
10% - 15%
US$ 1.07 billion was invested through Venture Capital in Latin American EdTech startups. In the region there are more than 1,500 EdTech companies creating more than 4,500 jobs (20)
Investment Timeframe
Short Term (0–5 years)
EdTechs in Latin America have an average of 8 years in the market. In 2021, 17 EdTech unicorns valued at more than US$ 1 billion emerged globally. Impact venture investments in 2021 reached US$ 20 billion in the educational technology sector, which compared to 2014 grew 42% (20) (21).
Ticket Size
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Capital - CapEx Intensive
Business - Business Model Unproven
Impact Case
Sustainable Development Need
In the 2021-2022 school year, more than 2.5 million students were enrolled. Of this population, the dropout rate at the primary level was 2.3% and 5.9% at the secondary level (23).
Only 35% of the educational centers in the Dominican Republic are located in rural areas, including rural tourist and isolated areas. This represents 14.64% of the students enrolled at the national level (19).
People of low economic resources do not have access to virtual education. During the COVID 19 pandemic, 77.1% of the very low socioeconomic family group attended classes in face-to-face mode and only 7.1% attended virtually and 16% in blended learning model (4).
Gender & Marginalisation
Of the population aged 5 years and older who have not attended formal education, 9.1% indicated that it was due to lack of economic resources to pay for their education (4).
Only 9% of the number of persons aged 5 to 29 years who attended classes during the pandemic were via desktop or laptop computer. In the very low socioeconomic group, this percentage was 0.4%. Cell phones were the main tool used by students (4).
According to ENHOGAR, 30.7% of women with no formal education indicated they did not attend because of domestic work at home (4).
Expected Development Outcome
Decrease the percentage of school dropouts in the Dominican Republic at the primary and secondary levels.
Increase access to formal education in rural areas and providing technical skills classes to children and adolescents through technology education
Gender & Marginalisation
Guarantee quality, accessible and affordable formal education for all households in the Dominican Republic.
Reduce the number of women who failling to attended and/or dropped out of formal education due to domestic work and ensure equitable access.
Primary SDGs addressed
4.1.2 Completion rate (primary education, lower secondary education, upper secondary education)
For the 2021-2022 school year, the promotion rate was 98.4%. The highest dropout rate for this school period was 2.2% in the northwestern Cibao region and 2% in the Higuamo region. The Valverde province has the highest dropout rate with 3.2% (24).
1) Increase the net completion rate of primary education to 96.5%, and secondary education to 39.8%; 2) decrease the proportion of low achievers in PISA from 75% to 68.8%; and 3) decrease the educational inequality coefficient from 0.27 to 0.22 (25).
4.4.1 Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
By the year 2021, the percentage of the population aged 5 years and older using computers at the primary or basic level is 31.3% (26). In rural areas, 66.7% of people between 7 and 65 years of age indicated that they do not have any knowledge of computers (27).
1) Increase the population aged 5 years and older with access to computers at the middle or high school level from 45% to 46.7%; and 2) Increase the percentage of people at the poverty level with average digital skills (25).
5.4.1 Proportion of time spent on unpaid domestic and care work, by sex, age and location
For 2018, according to ENHOGAR 2018, 32.1% of women who indicated that they never attended formal education indicated that it was because they had to do domestic work at home (28).
1) Increase the overall gender gap index from 70 to 73; and 2) Reduce the percentage of women in monetary poverty from 22% to 23.2% (25).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Public sector
Outcome Risks
Distance education through educational technologies can increase the parental burden to support their children to complete assignments (21).
The costs associated with accessing educational technologies could represent a barrier for economically disadvantaged individuals and families (21).
Reduce the number of hours dedicated to formal education in children and youths (21).
Gender inequality and/or marginalization risk: online tools require access to the Internet and electronic devices in order to access educational material. This may increase existing digital divides.
Impact Risks
The use of educational technologies may require other investments by schools to ensure their proper use. These include teacher training, change management and infrastructure.
Without appropriate support, students will not be able to receive quality education through online educational platforms. This may result in reducing the number of hours dedicated to study.
People with disabilities could be marginalized if the educational platforms implemented are not accessible and inclusive.
Impact Classification
What
To increase accessibility to education through educational technologies.
Risk
Only the population with access to technological resources and with a high level of digital literacy could access educational technologies.
Contribution
Increase access to quality, accessible and inclusive education through ICTs.
Impact Thesis
The use of EdTech will reduce the dropout rate among children and adolescents and increase access to quality education.
Enabling Environment
Policy Environment
National Development Strategy 2030 creates the basic conditions that favor the synergy between public and private actions for the achievement of the Nation's Long-Term Vision, Objectives and Goals (3).
Digital Agenda 2030, which seeks to transform the education sector through information and communication technologies (9).
The National Pact for Educational Reform in the Dominican Republic (8).
Financial Environment
Financial incentives: Foreign investors, whether natural or legal persons, have the right to remit abroad, in freely convertible currencies, without the need for prior authorization (33).
Other incentives: Residence Permits for Investment Program, through an agreement with the General Directorate of Migration, having as a prerequisite the Certificate of Registration of Foreign Direct Investment (33).
Regulatory Environment
Law No. 451-08 introducing amendments to the General Education Law 66-97 (29).
Law No. 136-03 which creates the Code for the System of Protection and Fundamental Rights of Children and Adolescents ( until the age of 18) (30).
Law 5-13 that protects and guarantees equal rights and equalization opportunities for all people with disabilities and regulates legal entities, without profit fines, whose corporate purpose is to work to improve the quality of life of people with disabilities (31).
Law No. 340-06 on Purchases and Hiring of Goods, Services, Works and Concessions which regulates all commercial relations between government and private sector (32).
Marketplace Participants
Private Sector
Companies in the information and communication technologies sector and entrepreneurial ecosystem (start ups), INICIA, Entrepreneurial Initiative for Technical Education
Government
MINERD, INFOTEP, MESCYT, INAFOCAM, ISFODOSU, INABIE, INAIPI, ETED and INDOTEL, and IDEICE.
Multilaterals
UNDP, UNESCO, UNICEF, World Bank, OEI.
Non-Profit
Save the Children, Fe y Alegría, PLAN, Visión Mundial.
Public-Private Partnership
EDUCA and IDEC
Target Locations
Cibao Norte
Cibao Sur
Cibao Nordeste
Cibao Noroeste
Valdesia
El Valle
Enriquillo
Yuma
Higuamo
Ozama
References
- (1) UNESCO, 2015. The TERCE Results Report – Learning Achievements. https://www.unesco.org/en/articles/terce-study-student-performance-improves-latin-america-inequality-and-other-factors-continue-affect-0#:~:text=Regional%20Bureau%20oforEducation-,Learning%20achievements,the%20upper%20level%20(IV)
- (2) Executive Summary of the National Consultation held in the framework of the Summit for the Education Transformation (TES) 2022. https://knowledgehub.sdg4education2030.org/system/files/2022-09/Dominican%20Republic_NC%20report.pdf
- (3) National Development Strategy 2030. https://mepyd.gob.do/mepyd/wp-content/uploads/archivos/end/marco-legal/ley-estrategia-nacional-de-desarrollo.pdf
- (4) ONE, 2022. General report ENHOGAR 2021. https://www.one.gob.do/publicaciones/2022/informe-general-enhogar-2021/?altTemplate=publicacionOnline
- (5) CIMA – Centro de información para la mejora de los aprendizajes. https://cima.iadb.org/es
- (6) Bnamericas, 2022. Dominican Rep makes strong bet on improving education infrastructure. https://www.bnamericas.com/en/news/dominican-rep-makes-strong-bet-on-improving-education-infrastructure
- (7) World Bank, 2021. Education for all by safeguarding health. A look at the performance of public-sector distance learning in the Dominican Republic in times of COVID-19. https://documents1.worldbank.org/curated/en/099622105312281650/pdf/IDU0c474b4b00ff75040f90860d0edfa1f97c8fc.pdf
- (8) National Pact for the Dominican Republic Education Sector Reform 2014-2030. https://siteal.iiep.unesco.org/sites/default/files/sit_accion_files/siteal_republica_dominicana_0349.pdf
- (9) Agenda Digital 2030. Education and Digital Capacities. https://agendadigital.gob.do/ejes/educacion-y-capacidades-digitales/
- (10) Martínez E., et al., 2021. Gender and COVID-19 in digital education and STEM: Resources to address gender gaps in Latin America. https://siteal.iiep.unesco.org/sites/default/files/sit_investigacion_pdf/genero_y_covid_en_educacion_digital_y_stem.pdf
- (11) EdTech Global Landscape Analysis. https://inee.org/sites/default/files/resources/edtech%20landscaping%20report_v4.pdf
- (12) Holon IQ – Education Technology in 10 Charts. https://www.holoniq.com/edtech-in-10-charts
- (13) Luminary LABS. From Creation to Adoption How to Develop and Deploy Successful EdTech for Adult Learners. https://lincs.ed.gov/publications/pdf/power-in-numbers-market-scan-3.pdf
- (14) USAID – Learning the Value of Education. https://pdf.usaid.gov/pdf_docs/PA00X4V2.pdf
- (15) Rodríguez-Segura, D., 2021. EdTech in Developing Countries: A Review of the Evidence. https://academic.oup.com/wbro/article-abstract/37/2/171/6333790
- (16) DIGEPRES, 2023. Central Government Budget Execution by Institution Period 2014-2022. https://www.digepres.gob.do/estadisticas/gastos/
- (17) Sánchez-Jáquez, V., 2023. National Report on the Evolution of Education Expenditure 2015-20211. https://redclade.org/wp-content/uploads/11-RD-gasto-en-educacion.pdf
- (18) MINERD, 2022. Budget Executed by the Ministry of Education as a Function of the Budget Paid at the End of the Fiscal Year 2004-2021. https://www.ministeriodeeducacion.gob.do/transparencia/media/presupuesto/gastos-en-educacion/49o-gastos-del-ministerio-de-educacion-2004-2022pdf.pdf 19 )MINERD. Summary of educational statistics 2021-2022. https://app.powerbi.com/view?r=eyJrIjoiZTFjYjM5ZTctMGFlYS00YWFjLTlhYzQtODJiNDBkNDE4ZTE1IiwidCI6IjY2ZTI4OThiLTJjMzUtNDMzZi1hNzUzLWJkNjRhY2EzOWFmYiIsImMiOjF9&pageName=ReportSection163a2fef4b799daa9985
- (20) IDB, 2021. Education Technology in Latin America and the Caribbean. https://publications.iadb.org/en/education-technology-latin-america-and-caribbean
- (21) HolonIQ, 2022. Global EdTech Venture Capital Report - Full Year 2021 https://www.holoniq.com/notes/global-edtech-venture-capital-report-full-year-2021
- (22) University of Pennsylvania, 2022. The Lauder Global Business Insight Report 2022. https://lauder.wharton.upenn.edu/wp-content/uploads/2022/02/4_Is-Edtech-Flourishing.pdf
- (23) IDEC, 2022. Monitoring and Evaluation Annual Report 2022 https://idec.edu.do/uploads/publicaciones/informe-general-idec-2022-web.pdf
- (24) ONE, 2023. Percentage of promotion, failure and dropout by school year and level, by region and province, 2010-2011/2021-2022. https://www.one.gob.do/datos-y-estadisticas/temas/estadisticas-sociales/educacion/
- (25) MEPYD, 2021. National Multiannual Plan for the Public Sector 2021–2024. https://mepyd.gob.do/publicaciones/plan-nacional-plurianual-del-sector-publico-2021-2024/
- (26) ONE, 2022. Percentage of the population aged 5 and over who use computers at the primary or basic level, 2015-2021. https://www.one.gob.do/datos-y-estadisticas/temas/sociedad-de-la-informacion/tecnologia-de-la-informacion-y-comunicacion/educacion-y-capacidades-digitales/
- (27) SIUBEN, 201. Third Socioeconomic Survey of Households 2018. https://siuben.gob.do/wp-content/uploads/2020/10/siuben-calidad-de-vida-2018-digital.pdf
- (28) ONE, 2019. General report ENHOGAR 2018. https://www.one.gob.do/publicaciones/2019/encuesta-nacional-de-hogares-de-propositos-multiples-enhogar-2018-informe-general/?altTemplate=publicacionOnline
- (29) Law No. 451-08 introducing amendments to the General Education Law. https://www.ministeriodeeducacion.gob.do/docs/marco-legal/leyes/ley-no-541-08-mod-ley-general-de-educacion-66-97-go-no-10490-del-23-de-octubre-de-2008.pdf
- (30) Law No. 136-03 which creates the Code for the System of Protection and Fundamental Rights of Children and Adolescents. and Fundamental Rights of Children and Adolescents. https://www.ministeriodeeducacion.gob.do/docs/marco-legal/leyes/ley-que-crea-el-codigo-para-la-proteccion-de-ninos-ninas-y-adolescentes-no-136-03-go-no-10234-del-07-de-ago-del-2003.pdf
- (31) Law No. 05-13 for equal rights of people with disabilities https://www.un.org/development/desa/disabilities/wp-content/uploads/sites/15/2019/11/Dominican-Republic_Organic-law-on-equal-rights-for-people-with-disabilities.pdf
- (32) Law No. 340-06 on Purchases and Hiring of Goods, Services, Works and Concessions https://www.dgcp.gob.do/sobre-nosotros/marco-legal/
- (33) Law No. 16-95 on Foreign Investment. https://prodominicana.gob.do/wp/wp-content/themes/ceird/ceirdpdf/Ley-16-95-sobre-Inversion-Extranjera.pdf