The GPE Multiplier is an innovative finance instrument that provides an incentive and the financial resources to catalyze better investment in education. The GPE Multiplier works alongside other sources of external funding. It can be invested as a grant or used to lower the interest rate on concessional lending, for example from multilateral development banks or bilateral donors. It can also work alongside other, non-traditional sources of development finance, including private capital.
The Multiplier provides an incentive and the resources to “unlock and unblock” new cofinancing for education programs. To access the grant, countries work with a range of cofinancing partners to mobilize new funding for education programs. The key criterion is that the cofinancing is “new and additional", it is unlikely to have been mobilized for education or mobilized as quickly if the Multiplier were not available.