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HELSB Seeks Private Investment in Student Loans
The Higher Education Loans and Scholarships Board -HELSB- has called on banks,...
By Arnold Tutu
The Higher Education Loans and Scholarships Board -HELSB- has called on banks, pension funds and insurance companies to increase support for education financing after nearly half of student funding demand went unmet in 2025.
The Board says 45.3 per cent of student financing needs remained unfunded last year, showing the need for additional funding sources beyond government support.
Speaking at the Zambia Capital Market Conference and Awards in Livingstone, HELSB Chief Executive Officer JOHN MACHAYI said Zambia needs a broader financing base to increase access to higher education and develop skills required for economic growth.
Dr. MACHAYI, who is also President of the Association of African Higher Education Financing Agencies, said investment in student financing enables young people to acquire qualifications, enter employment and support future students through loan repayments.
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He said HELSB’s annual disbursements increased from about 558 million Kwacha in 2021 to 1.8 billion Kwacha in 2025, while the loan portfolio grew to more than 10 billion Kwacha by June this year
Dr. MACHAYI has called on commercial banks to introduce education-financing products that respond to the needs of working families.
He proposed options including repayments linked to salaries, staged payments based on verified university costs, and financing for tuition fees, accommodation and learning materials.
Dr. MACHAYI said earning a salary does not always mean parents can meet university expenses when payments fall due.
He also urged pension funds, insurers and asset managers to consider investing in structured education-financing arrangements.
Dr. MACHAYI said long-term investment in education can help produce skilled professionals needed to support Zambia’s industries and institutions.
The HELSB chief executive said possible financing options include bonds, social bonds and other investment models, but clarified that no bond issuance or investment commitment has been announced.
He said improved loan recoveries are important in building confidence among potential investors.
HELSB recovered about 233.8 million Kwacha in 2025 and 129.9 million Kwacha in the first half of 2026, while the number of beneficiaries repaying loans increased to more than 22,000 by June this year
Dr. MACHAYI urged employers and beneficiaries to make timely repayments, saying recovered funds help support other students.
He warned that financial barriers could prevent young people from gaining skills needed for Zambia’s future development.
Dr. MACHAYI said he will now prepare a concept proposal for consideration by the Board and engage relevant government authorities on possible financing options.
This is according to statement issued to ZNBC news by HELSB Manager Corporate Affairs CHISELWA KAWANDA.
Source: Zambia24 — Read more
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