In 2013 and 2016, IFC invested a total of US$13.5m of equity in NewGlobe Schools, Inc., which owned Bridge International Academies, Africa’s largest chain of low-cost schools. According to IFC, at the time of its investment, Bridge operated 211 schools serving over 57,000 students in Kenya and aimed to provide quality education to children from families earning less than $2 per person per day. The investment was intended to support an increase in the number of schools in Kenya and expansion to 3 new countries. IFC exited its investment in NewGlobe Schools (the parent company of Bridge) effective March 3, 2022.

While IFC’s direct investment in Bridge terminated in March 2022, IFC had an indirect exposure to Bridge through its equity investment in a financial intermediary, Learn Capital Venture Partners III LP (Learn Capital III), which held equity in NewGlobe Schools. In February 2024, CAO was informed by Bridge and Learn Capital III that Bridge had transitioned to be an independent foundation from NewGlobe Schools thereby terminating all financial engagements NewGlobe Schools had with Bridge.

On June 16, 2023, CAO received a complaint from a former student at a Bridge International Academies School in Kenya. The complainant said that when they were still enrolled in the school, they were sexually abused and harassed by one of their teachers on the school premises. The complainant was a minor when the abuse occurred.  Subsequently, CAO received three additional complaints from three former students raising the same concerns (see Learn Capital-02, 03, and 04).

In October 2023, CAO found the complaint eligible and conducted an assessment. During CAO's assessment, CAO held conversations with the complainant, Learn Capital III, and Bridge (the “parties”) to gather their perspectives on the complaints and inquire about their potential interest in engaging in a dispute resolution process facilitated by CAO or whether the complaints should be addressed by CAO’s compliance function.  Since the parties were not able to mutually agree to a dispute resolution process, the complaint was transferred to CAO’s Compliance function for appraisal of IFC, in accordance with the CAO Policy.

CAO’s Assessment Report is available in English.