Malengo Raises $12.9 Million to Expand Education and Migration Pathways for East African Youth

 
When opportunities are scarce at home, education abroad can become more than a dream, it can become a pathway to transformation. That’s the promise behind Malengo, an education and social mobility startup that has just raised $12.9 million from the Shapiro Foundation to expand its reach across East Africa.

The funding will enable Malengo to extend its education and migration programs across Kenya, Uganda, and Rwanda, supporting hundreds of students from low-income backgrounds to study and work in high-income countries, mainly Germany, through a model that reimagines how opportunity is financed.

A Bridge Between Two Worlds

Founded in 2021 by Johannes Haushofer, a professor at Cornell University, Malengo operates at the intersection of education, migration, and finance. The organization identifies promising students from economically disadvantaged backgrounds, supports them with university admissions, German language training, visa processing, and relocation, and helps them begin new lives and careers abroad.

Malengo’s approach isn’t built on traditional student loans. Instead, it uses an Income Share Agreement (ISA) model. This means students receive full support upfront, covering tuition, travel, and living expenses, and only start repaying once they secure employment and earn above a certain income threshold. If they never reach that threshold, they owe nothing.

For students who succeed, the outcome can be life-changing. According to Malengo, participants often move from households earning less than $2 per day to starting salaries as high as $40,000 per year after securing jobs in Europe.

Scaling Up With the Shapiro Foundation

The $12.9 million investment marks a major milestone for Malengo. With this funding, the organization plans to support more than 700 new students over the next three years. It has already enrolled over 500 scholars since inception, building a growing network of young Africans pursuing education and careers in Europe.

The Shapiro Foundation’s involvement signals a broader recognition of the role targeted migration can play in economic mobility. The Foundation, known for supporting refugee and education-focused programs, described Malengo’s work as “a scalable, data-driven model for breaking cycles of poverty.”

Rethinking What “Aid” Looks Like

Malengo’s model challenges the traditional boundaries of aid and development. Instead of keeping talent within constrained job markets, it helps individuals cross borders to where opportunities are abundant, while still maintaining a financial structure that encourages accountability and sustainability.

Critics often warn of brain drain when talent leaves developing regions, but Malengo argues that the gains ripple outward. Graduates send remittances home, invest in their communities, and demonstrate that mobility can be a tool for growth, not just escape. The organization’s ISA model even includes provisions for reduced repayment rates if graduates choose to remain or return to low-income countries, acknowledging the need for balance between global and local impact.

A Growing Model for Global Mobility

The idea of combining education, migration, and finance into one system isn’t entirely new, but Malengo’s execution feels distinctively grounded in data and ethics. Its investor memo outlines a goal of creating “equal access to opportunity regardless of birthplace,” a mission that resonates across a continent where youth unemployment remains a defining challenge.

Still, scaling such a model won’t be simple. Each student’s journey involves language preparation, visa approvals, and integration into new societies. And because the model depends on foreign job markets, Malengo’s future success partly hinges on stable immigration and labor policies in countries like Germany.

For now, though, the momentum is real. With fresh funding, expanding partnerships, and growing proof of impact, Malengo is positioning itself as one of East Africa’s most innovative social enterprisesone that treats education not as charity, but as a catalyst for mobility.

As one of its recent graduates put it, “Malengo didn’t just give me a scholarship. It gave me a world I didn’t think I could reach.”