Financing Models for ECD
iYCG Meeting – Addis Ababa – July 27th 2015
Meet Kidogo.
Kidogo is a social enterprise that provides
high-quality, affordable early childhood care
& education to families living in informal
settlements.
Through our growing network of daycares &
pre-schools, Kidogo provides young children
all the building blocks they need to thrive
during their most important “early years.”
01
Problem
Working mothers in urban slums lack
suitable options for child care
Problem
Working mothers in urban slums lack suitable options for childcare
Children are left at
home alone
Children are left with older
sibling pulled from school
Children are left at a
local “babycare”
03
Solution
High-quality, affordable early childhood care
& education for less than $1 / day
Solution
A holistic offering that provides all the building blocks children need to thrive
Early Years Curriculum
We develop play-based lessons &
learning materials that combine
global best practices with local
customs & culture
Safe & Child-Friendly Spaces
We design & build physical
spaces to ensure all children have
fun, safe and supportive
environments to explore
Certified ECD Teachers
We recruit & train only the best
local Early Childhood caregivers &
teachers that can support young
children as they grow & learn
Health & Nutrition Programs
We provide nutritious meals
throughout the day and health
monitoring support to our
growing children
05
Certified ECD Teachers
Early Years Curriculum
the
way
Child Friendly Spaces
Health & Nutrition Program
Business Model
Already serving over 200 young children
and their families in just 1 year
Business Model
Operating a network of affordable daycares & preschools, with a shared back-office
Best Practice “Hub”
Micro-franchised “Spokes”
Profit as a means, not the end goal
08
Hubs
Currently operating 2 Centres of Excellence serving over 100 families
1 of 2 Centres has reached “operational breakeven”
09
Hubs
A “peak” under the hood of a Kidogo childcare centre
700 Cost ($)
Monthly
$600
600
8%
500
37%
400
An average
centre needs
to be at 95%
capacity yearround in order
to breakeven
100%
300
42%
200
100
0
13%
Rent & Utilities
Teachers & Staff
Meals
Curriculum
Materials
Total Operating
Costs
“There is no margin for error... Every dollar is needed,
every day, for every child.” - Alliance for Early Childhood Finance
09
Spokes
Business-in-a-box micro-franchising program
Mary’s Babycare
Home-based childcare in Kangemi
Destiny Kids Academy
ECD Centre in Kangemi
Pilot: 6 “Mamapreneurs” registered as Kidogo partners
10
Key Lessons
Small independent childcare centres are
very difficult to operate sustainably
•
•
•
Extremely slim margins
Fluctuating enrollment rates
Inconsistent collections
Infants & toddlers are expensive to serve,
but where you can have the most impact
•
•
Pre-school classrooms “subsidize”
Quality vs. cost tradeoffs
Need to pull non-core tasks out of centers to
achieve sustainability at scale
•
•
•
Plug & play model
Shared services for mgmt / admin
Consider ancillary revenue streams
Thank You
www.kidogo.co