Early childhood

Early childhood education

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Early childhood education

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Education
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Formal Education
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
In 2019, an estimated 600,000 children were in 3-5 years age range, signaling major demand
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8) Gender Equality (SDG 5)

Business Model Description

Upgrade school facilities and provide teacher development for nurseries and KG1/2

Expected Impact

Improve the educational and cognitive, social and emotional development outcomes for children under the age 5

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

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Country
Region
  • Jordan: Countrywide
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Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Education

Development need
Sustainability Development Report 2019: score of 78 on SDG 4 (Quality Education), with 'Significant challenges remain'; and score 62.5 on SDG 8 (Decent Work and Economic Growth), with 'Challenges remain'; with “Major Challenges Remain” subscores prevalent across indicators (1). The unemployment rate reached 23% in Q2 2020 (2).

Policy priority
The Education Strategic Plan 2018 – 2022 targets an increase in KG1 enrollment rate from 35% to 52% and for KG2 from 59% to 80% by 2022 (6).

Gender inequalities and marginalization issues
The influx of more than 1.3 million Syrians has placed extra demands on the education system and labor market. In 2019, the unemployment rate reached 25.6% among males, and 78% among females holding undergraduate or higher degree (4).

Investment opportunities introduction
The COVID-19 pandemic has set a need to adapt and to develop online and blended learning solutions. Strong and significant policy momentum for investment in online learning in schools and universities: national strategies and current government plan emphasize education as a priority sector (5).

Sub Sector

Formal Education

Policy priority
Early childhood care and education have been recognized in the political and educational agenda in Jordan. The Government, with the help of international donor agencies, has launched reform initiatives and programs to develop and enhance children’s education. (6b)

Gender inequalities and marginalization issues
Jordan has some of the lowest indicators in the world on labor force participation, productivity, and gender equality due to chronically low female labor force participation rates, which represent a high cost to the Jordanian economy and a missed opportunity cost that negatively impacts the GDP and results in a loss of return on public spending on education. (6c)

Pipeline Opportunity

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Investment Opportunity Area

Early childhood education

Early childhood facilites and development
Business Model

Upgrade school facilities and provide teacher development for nurseries and KG1/2

Business Case

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Market Size and Environment

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

In 2019, an estimated 600,000 children were in 3-5 years age range, signaling major demand

Population growth will continue to generate demand for education. In 2019, an estimated 600,000 children were in 3-5 years age range (16)

Government's plan to make KG2 compulsory generates additional demand.

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

20% - 25%

Societal / economic return on early childhood education is very high with an estimated return of between $ 9 - $ 20 for every $1 invested (14)

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Based on consulted benchmark projects, the projected investment timeframe is expected to be between 5 and 10 years

Market Risks & Scale Obstacles

Market - Volatile

Legislative and regulatory instability and fragmentation of policy mandates (between responsibilties for nurseries and KG1 and for KG2)

Capital - Requires Subsidy

Institutional capacity gaps and budgetary constraints to scale access to quality early childhood education Affordability of private sector services to citizens beyond urban areas

Training

Number of qualified teachers, poor coordination between universities and colleges in the preparation and training of KG teachers

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Only 3% of children attend nurseries, 13 % KG1 and 59% KG 2 (9), while 1.4 million children under 5 years (14%) are in need of nurseries and KGs (10) and 2800 KG2 classrooms are needed to reach all 5-6 year olds (11)

Poor quality and teaching facilities, no standard curriculum, physical environment and learning material in many KGs and nurseries in Jordan is sub-standard

Quality early childhood development services is linked to increase of up to 25% of household income (12)

Gender & Marginalisation

A 2015 survey of Jordanian mothers found only 2% of children aged 3-48 months were enrolled in nurseries, which limits women's employment opportunities. (17)

Low level of enrollment in early childhood education one of main obstacles for greater female labour force participation

Expected Development Outcome

Increase in the number of children enrolled in early childhood education

Increase in household income

Gender & Marginalisation

Increase in participation of women in labour market and lower absenteeism rate for employees

Primary SDGs addressed

Quality Education (SDG 4)
4 - Quality Education

4.2.1 Proportion of children aged 24-59 months who are developmentally on track in health, learning and psychosocial well-being, by sex

4.1.2 Completion rate (primary education, lower secondary education, upper secondary education)

Secondary SDGs addressed

No Poverty (SDG 1)
1 - No Poverty
Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Gender Equality (SDG 5)
5 - Gender Equality

Directly impacted stakeholders

People

1.4 million children under age of 5 in Jordan (13) with better education outcomes

Indirectly impacted stakeholders

Gender inequality and/or marginalization

Mothers with better employment opportunities

People

Households from better social and economic benefits of investing in early childhood development

Outcome Risks

Unequal access could lead to increased inequalities within society

Impact Classification

B—Benefit Stakeholders

What

The greater access to early childhood education will ensure better educational outcomes and facilitate female labour force participation.

Who

All children in Jordan until age of 6 years (elementary school age) and their families.

Risk

Breadth of impact could be affected by low quality of teacher training, available infrastructure and legal landscape as well as affordability.

Impact Thesis

Improve the educational and cognitive, social and emotional development outcomes for children under the age 5

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Early childhood education is a priority both in the Education Strategic Plan 2018-2020 and National Strategy for Human Resource Development 2016-2025

Government is moving towards compulsory KG2 by 2020 to improve education outcomes

Financial Environment

Other incentives: There are no specific tax or other incentives for private sector early childhood education services

Regulatory Environment

Early childhood education consists of 3 levels: nursery, KG1 and KG2. Nursery and KG1 level is overseen by Ministry of Social Affairs and with private sector delivering most services. MOE oversees KG2 covering quality assurance, licensing and oversight.

Related national plans/strategies include clear indicators related to KG and nursery enrollment and short and long-term targets.

Marketplace Participants

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Private Sector

AJYAL CAPITAL

Government

Ministry of Education

Multilaterals

UNICEF, World Bank

Non-Profit

USAID

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
semi-urban

Jordan: Countrywide

Early childhood education and development is applicable across the countries where children require high quality education opportunities

References

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    • (1) Sustainable Development Report 2019.
    • (2) Department of Statistics, 2020, Unemployment Rate (http://dosweb.dos.gov.jo/19-0-the-unemployment-rate-during-the-second-quarter-of-2020/)
    • (3) Ministry of Education, 2018, Education Strategic Plan 2018 – 2022.
    • (4) Human Rights Watch,2017, Jordan: Secondary School Gap for Syrian Refugee Kids.
    • (5) Prime Ministry of Jordan. Official Reports. (2020). Available online at: http://www.pm.gov.jo/category/7603/?????.html
    • (6) Ministry of Education, Education Strategic Plan 2018-2022. 6b) Omayya M. Al-Hassan (2018) Developments of early childhood education in Jordan, Early Years, 38:4, 351-362, DOI: 10.1080/09575146.2018.1512562 6c) USAID (2020). Final Report: USAID/Jordan Gender Analysis and Assessment, page 8.
    • (7) Ministry of Education, Education Strategic Plan 2018-2022.
    • (8) National Growth Plan 2018 -2022.
    • (9) UNICEF, 2019, Early Childhood Development Project, Private Investor Brochure
    • (10) Department of Statistics, 2020
    • (11) Jordan's Way to Sustainable Development: First National Voluntary Review on the Implementation of the 2030 Agenda, 2017
    • (12) UNICEF ibid
    • (13) Ministry of Education, Education Strategic Plan 2018-2022
    • (14) Queen Rania Foundation, 2017 Economic implications of investing in early childhood care and education in Jordan, Working Paper 1
    • (15) Queen Rania Foundation, ibid
    • (16) Queen Rania Foundation, ibid
    • (17) QRF Fact Sheet (2017). Early Childhood Care and Education in Jordan.