Inside Capital Partners has invested in Madagascar’s Hautes Études Pratiques Internationales (HEPI), marking a strategic push into the country’s higher education sector and signalling rising investor confidence in Africa’s human capital economy.
The deal, announced in Antananarivo on April 2, will support HEPI, the platform behind Vatel Madagascar, in scaling operations through a new campus, expanded academic programmes and a sharper focus on practical, market-aligned training.
The investment comes at a critical juncture for Madagascar, where access to quality higher education remains constrained despite a rapidly growing youth population. Across sub-Saharan Africa, more than 60 per cent of the population is under 25, yet tertiary enrolment rates remain among the lowest globally, creating a widening skills gap that continues to weigh on economic productivity.
Inside Capital’s move reflects a broader shift among private equity investors towards education as an investable frontier that blends commercial returns with long-term developmental impact.
“We are proud to partner with HEPI at this pivotal stage of its development,” said Nirina Rajaonary, Principal at Inside. “This investment reflects our conviction that strengthening human capital and employability through high-quality education in Madagascar is one of the most powerful drivers of long-term economic growth.”
For HEPI, the partnership represents more than a capital injection. Founder and chief executive Faly Ramakavelo described the deal as a catalyst for accelerating its long-term vision.
“From our first discussions, I felt that Inside positions itself as a true partner,” he said. “They provide not only capital but also strategic support that will enable us to accelerate our vision. This partnership will help us strengthen our platform to serve more Malagasy students, providing them with a world-class education and solid career paths.”
At the heart of the investment is a bet on employability, a persistent challenge across African economies, where formal job creation often lags behind population growth. By aligning academic programmes with market needs, HEPI aims to produce graduates equipped for sectors such as hospitality and tourism, which remain key drivers of Madagascar’s economy.
The model reflects a growing trend in African entrepreneurship: the rise of locally anchored, impact-driven enterprises addressing structural gaps in education, healthcare and infrastructure. These businesses are increasingly attracting private capital as investors seek scalable solutions to systemic challenges.
Inside Capital Partners, an independent private equity manager focused on high-potential SMEs in Southeast Africa, brings more than funding to the table. Its strategy combines operational expertise, governance support and regional networks. This model is designed to accelerate growth while ensuring long-term sustainability.
For Madagascar, the implications are significant. Expanding access to quality, internationally recognised education could unlock new pathways for youth employment, boost productivity and support the country’s integration into regional and global value chains.
More broadly, the deal underscores a shift in how Africa’s development story is being financed, from donor-led programmes to entrepreneur-driven platforms backed by private capital.
As investors increasingly turn to education as a lever for economic transformation, HEPI’s expansion could offer a blueprint pairing local insight with institutional capital to build scalable, market-relevant institutions.
