Africa Leadership AcademyTamecia Jones

Eric Westendorf

Yvonne Da Silva

Fred Swaniker

The Concept

Key elements of our offering: • Expertise in University Placement • Talented, Pan-African Student Body• Rigorous Academic and Extracurricular Preparation• A Moral Foundation• Entrepreneurial Training • Extensive Use of Technology

African Leadership AcademyThe African Leadership Academy (ALA) is a private, co-educational school located in the outskirts of Cape

Town, South Africa. The school brings top students from around Africa to spend two years preparing for entry into the world’s top universities via a rigorous International Baccalaureate Diploma program (similar to the

A’level.) In the process, ALA creates a community of African scholars that will support one another in becoming the next generation of African leaders.

ALA’s Offering

ALA

Expertise in University Placement

•cultivate strong relationships with the admissions offices of top universities

•provide students with expert guidance in navigating through the admissions process

Talented, Pan-African Student Body

•Admissions based on ability and potential, not family wealth

•Students come away with appreciation for diverse cultures and powerful network of

friends

A Moral Foundation

•Emphasis on honesty, fairness, and integrity

•Students participate in public service projects

Rigorous Academics and Extracurricular Program

•IB Program

•High Quality Teachers

Extensive Use of Technology

•Technology enhanced classrooms with wireless connections

•Networked dormitories

Entrepreneurial Training

•Opportunities to run student organizations (store, restaurants, performances)

•Annual business plan competition

Value PropositionEducation is an Investment

FINANCIAL

NONFINANCIALChoose ALA

Greater Chance of C

hild

Getting In

to Top University

with Scholarship

Greater Job Prospects for Child

Greater Financial Security in Old Age

Greater Educational

Experience for ChildGreater Job Options/Satisfaction for Child

Market Environment

Market Demand

Competitive Landscape

Preliminary Bottom Up Estimate: Market Size

At least 115 Schools across the African Continent serving the top end of the market

• Average School Size:356 Students

• Average number of Secondary Students:221 Students(of schools that reported)

• Initial Bottom-Up Estimate:

40,940 Students

Legae Academy * Maru A Pula School * Westwood International School * The American School of Kinshasa * International Christian Academy * International Community School of Abidjan * American International School in Egypt * Cairo American College * El Alsson and the English Academy International School * International Arab Egyptian School * International School of Choueifat – Cairo * New Cairo British International School * Schutz American School * The British International School, Cairo * The Modern English School, Cairo * International Community School, Addis Ababa * Sandford International School * American International School Libreville * Ghana International School * Lincoln Community School * SOS-Hermann Gmeiner International College * Aga Khan Academy, Mombasa * Brookhouse School * Hillcrest Secondary School * Imani School * International School of Kenya * Nairobi Academy Secondary School * Pembroke House * Peponi School * Rosslyn Academy * Tigoni Academy * Machabeng College/International School of Lesotho * Bishop Mackenzie International SchoolsKamuzu Academy * St Andrew's International High School * Le Bocage International School * American School of Tangier * Casablanca American School * Rabat American School * Maputo International School * St Paul's College * Windhoek International School * American School of Niamey * British International School, Victoria Island * Hillcrest School * Dakar Academy * International School Seychelles * American International School of JohannesburgInternational School of Cape Town * International School of South Africa * Khartoum American School * Sifundzani School * Waterford Kamhlaba UWC of Southern Africa * Aga Khan School * International School Moshi * International School of Tanganyika * International School of Zanzibar * The British School of Lomé * American Cooperative School of Tunis * Lincoln International School of Uganda * American International School, Lusaka * The International School of Lusaka * Falcon College * Harare International School * Peterhouse * 

Source: European Council of International Schools, http:/www.ecis.org, US State Department, Team Research

Growth Characteristics-Kenya Example

Growth in Private School Student Enrollment from 1980-96

0

1000

2000

3000

4000

5000

6000

1980 1985 1990 1996

Year

Number of Students

Female

Male

Source: Private School Survey, August 1996. Business of Education in Kenya.

Growth: 576%-Female 919%-Male

Wait List Data for a Sample of Kenyan Private Schools

Wait List

0

100

200

300

400

500

600

700

Arya GirlsSecondary

CavinaSchoolLoretoConventMateri Girls

CentreRavalsSecondary

St. LucieKiriri Girls

Source: Private School Survey, August 1996. Business of Education in Kenya.

0

50

100

150

200

250

300

350

Arya GirlsSecondary

CavinaSchool LoretoConvent

Materi GirlsCentre Ravals

SecondarySt. LucieKiriri Girls

School

Percentage (%)

Source: Private School Survey, August 1996. Business of Education in Kenya.

Wait List as % of Enrollment: Kenyan Private Schools example

Average % Waitlist:

57.8%

Transitions in the African Educational System

Primary

Age 5-11/12

Early Secondary

Age 11/12-15/16

University

Age 17/18-21/22

Late Secondary

Age 15/16-17/18

Transition #1

After the Common

Entrance Exam

Transition #2

After the “O” Level for Anglo Schools; Breve for Franco

Schools

Transition #3

After the “A” Level (IB)

Switching SchoolsIs it common for students to switch schools between early

and late secondary schools?

• While it is difficult to find macro statistics, our interviews suggest that many families do, or are willing, to switch.

• One example: the percentage of international students shifts dramatically at St. John’s School in South Africa…

Total students

Percent International

Early Secondary

Late Secondary

…this suggests that families outside of South Africa are sending their children to boarding schools like St. John’s for only the last two years.

Demographics Who can afford to send their children away to school?

Primary Early Secondary UniversityLate Secondary

Only the very

wealthy

Most wealthy and upper middle

class

Most wealthy and upper middle

class

Competitor Offerings

Source: ECIS, http:/www.ecis.org and individual school websitesNote 1: Data collected from a sample of 80 private schools offering secondary education in AfricaNote 2: All schools offer a full secondary education (US or IB 4 years, British 5years)

Educational Offering and School Setting

48

5

10

14

0

10

20

30

40

50

60

70

Primary and Secondary Secondary Only

Educational Offering

Number of Students

Boarding

Day Only

17%

74%

Competitive Landscape

0.5

1.5

2.5

3.5

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

Total Annual Fees

Entrance Requirements

Ability to Pay

Entrance Exam

Entrance Examand

Ability to Pay

United World College, SwazilandSOS, Ghana

Int'l Arab Egyptian School

Ghana Int'l School

St. Andrew's College, South Africa

Casablanca American School

American School of Tangier

Source: ECIS, http:/www.ecis.org and individual school websites

Positioning within the Competitive Landscape

0.5

1.5

2.5

3.5

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

Total Annual Fees

Entrance Requirements

Ability to Pay

Entrance Exam

Entrance Examand

Ability to Pay

Boarding SchoolPan African Student BodyLate Secondary (IB Diploma Program)Intense College Preparatory ProgramApprox. $15,000

African Leadership Academy

Customer Overview

Market Research to Date

Key Learnings from Market Research

Additional Market Research

Customer Acquisition Plan

Customer OverviewoPrimarily Black African from countries outside of South AfricaoHighly educated, usually with advanced degree from overseasoProfessional, often self employed or senior executive o‘Earned’ wealth (did not inherit it)o2-3 children, currently in private elementary/high schoolsoTotal Family Income >$80,000/year

oFoundations interested in Education/in AfricaoCompanies with interests in Africa (e.g Microsoft, Citigroup)oWealthy individuals who have an interest in Africa/development

oEmployees of Multinational CompaniesoDiplomatsoEmployees of Multilateral Organizations (IFC, UN, etc.)

Wealthy African Parents

Donors

•Expatriate Parents

Market Research: Progress To Date

Customer Interviews Expert Interviews Web Survey

23 Total

•14 done by team

•9 Outsourced

7 Total

•All done by team

Sent to over 50 parents, 5 responses so far

Customer Interviews: Geographies Covered

•Nigeria•Ghana•Ivory Coast•Senegal

* Botswana•South Africa•Zambia•DRC

•Kenya•Ethiopia

•Malawi•Burundi

* Tunisia

Key Learnings

• Reputation of School (opinion of other parents matters b/c word of mouth is main marketing tool)

• College Placement record • Extracurricular Activities• Single Sex vs Co-ed• Diversity of student body• Moral/Religious Education• “Rural” setting vs Urban setting• Facilities: “Wow” factor• Is this a “Finishing school” for rich kids vs “training school” for kids of

professionals?

Non-Important Factors

• For-profit vs non-profit nature of school

• Cost….parents so far not very price sensitive (currently paying $25-35,000/yr/child for schools in UK)

• Luxury of student accommodations

Parent Responses to ALA

Exciting Points• University Placement• Bringing children from

52 African countries to one location

• Majority black student body

• Cape Town Location

Concerns• Sending their children

far away before the age of 15

• Co-ed nature of school (for kids <15)

• Our ability to teach leadership/emphasis on “creating” leaders

• Lack of African language instruction

Implications for Business Model

Primary Early Secondary UniversityLate Secondary

Original Focus New Focus

Shifting to Later in the System

Change in ALA FocusWe now intend to focus on the second transition

RationaleWhy did we shift our focus?

• It’s easier to sell to parents

– Our pool of prospective customers is larger, since more parents can afford to pay for two years of boarding school

– Parents only have to wait two years, instead of six, to see their ROI (children getting into university)

– Parents are more focused on university placement at this later stage– Parents are more comfortable sending their children to boarding school when they are 15 or

16– Parents are more comfortable with co-ed schools when their children are 15-16

• We can develop a reputation more quickly• We can focus on our most important distinguishing characteristic—our

expertise in college placement• No other schools are focused solely on the final two years• Students are more mature so there are fewer operational challenges• We can charge higher tuition while lowering capital expenses

25

Plan for Continued Market Research

• Finish Parent Interviews– 3-4 parents

• Continue Web Survey• University Interviews• Assess Donor Demand

– Interview 2-3 Donors

• Analyze Results• Synthesize Key

Learnings

Area of Work

Feb 29 Mar 7 Mar14

Week ending

Customer Acquisition

Groups to target

Parents

Corporations, Embassies & Ngo’s

Students (High Schools)

Donors (for scholarships)

Customer AcquisitionHOW TO TARGET?

PHASE I PHASE IIIPHASE II

Media (Magazines, Newspapers) Advertisements

Brochures

Alliances with high Schools - Students, Parents, Teachers, etc.

Alliances with Corporations & NGO’s (extend special offers to employees)

Annual Presentations in cities.

Video Brochure

Arrange visits by prospective parents, high-school heads, students, etc.

Risks and Plans to Mitigate

Risks and Plan to Mitigate

• Parents will be reluctant to enroll their children in a new school that lacks a reputation

• Recruit principal and initial teachers with a track record; Focus on differentiating characteristics

Risk.. Plan..

• Parents will not switch schools

• Difficulty accessing customers

• Regulatory risk

• Venture will unable to raise sufficient funding

• Venture will be unable to become IB certified immediately

• Zoning regulations will prevent development

• Market to families early on so they plan on switching

• Location of school in South Africa will minimize regulatory risk

• Hold cocktail parties outside of school to inform parents; market to large companies

• Leverage network of contacts within development-minded sector; find group of private investors.

• Hire a high percentage of IB trained teachers and appeal to get certification earlier

• Buy land that is already zoned as “non-agricultural use”