Topic 3: Financing and investment

The third Ministerial Symposium Challenge Roundtable explored one of the most pressing questions facing education systems worldwide: how can governments sustainably finance digital transformation, moving beyond successful pilots to deliver meaningful impact at scale?

Opening contributions gave  participants a shared understanding of the barriers to sustainably funding digital transformation, before focusing on co-designing potential solutions and identifying commitments that could help move education systems from pilots to scale. Participants considered the growing pressures on education financing, the role of digital transformation and the new approaches to funding and collaboration needed to deliver sustainable impact.

Across the roundtable, participants highlighted the growing pressure facing education systems, drawing on SDG indicators. More than 272 million learners are out of school, only 58% of learners are reaching minimum reading proficiency, and millions of young people lack secondary education certificates. At the same time, the growing global shortage of teachers remains a challenge. Against this backdrop, public budgets, development aid and governments' fiscal space are under increasing pressure.

Participants agreed that the cost of inaction is greater than the cost of investment. However, making that case requires education to be positioned not simply as an expenditure, but as an investment capable of delivering significant social and economic returns.

Digital transformation was seen as an important part of that equation. From AI tools that can reduce teacher workload to technologies that can expand access and improve outcomes, there is significant potential to help education systems do more with limited resources. But participants stressed that technology cannot simply become another layer of cost.

For digital transformation to deliver value, investment must also address infrastructure, equity, leadership, culture and capacity building. The measure of success should therefore not be how much technology is deployed, but whether it contributes to better outcomes more efficiently and ultimately reduces the cost per outcome.

The conversation also explored innovative approaches to financing transformation at scale. Participants considered models including results-based financing, income-contingent loans, advanced market commitments, leasing, blended finance and consortium purchasing. These approaches have the potential to distribute risk, encourage innovation, delay upfront government expenditure and attract new sources of capital.

However, interest in new financing models does not automatically translate into adoption. Participants identified limited awareness, insufficient evidence, weak data and unclear standards as significant barriers. Governments need greater access to case studies, shared learning and capacity building to understand which models are appropriate for their education systems and how they can be implemented effectively.

Cross-government alignment emerged as another critical challenge. Ministries of Education may recognise the need for transformation, but financing reform can stall without the engagement and approval of Ministries of Finance. Different priorities and ways of working across education, finance and digital teams can slow decision-making, reinforce siloed procurement and make long-term planning more difficult.

Strengthening dialogue between these teams will therefore be essential. Participants also highlighted the role of structured public-private collaboration, with governments increasingly looking to industry and other partners to share risk, build implementation capacity and unlock new sources of funding.

Whilst the discussion explored a range of financing mechanisms, a common principle emerged: sustainable digital transformation requires more than finding additional funding. It requires governments to rethink how investment decisions are made, how risk is shared and how education, finance and industry work together to deliver long-term impact.

Key takeaway: The financing challenge is not simply about spending more on digital transformation, but investing differently. By strengthening the economic case for education, building cross-government capability and adopting outcomes-focused financing and partnership models, governments can create more sustainable pathways from promising pilots to system-wide transformation.