EdTech in Central America: can Mexico drive the digital transformation of education?
When a country is experiencing ultra-rapid youth growth, its priority is naturally access to a level of education compatible with its economic ambitions. Education then becomes a real national priority. Mexico, now the world’s fifteenth economic power, has seen its population grow from 38 million in 1963 to almost 130 million today. At the time, this young democracy devoted almost 25% of its state budget to developing the structures and human resources needed to ensure the education and training of its young people.
Although 60 years on, this percentage has become very low in view of the stakes and the country’s presence in the world’s largest free trade market (Mexico is part of the USCMA – United States Canada Mexico Agreement, which came into force in 2020 and extends the creation of this market in 1994), the country’s 39 public universities account for almost 60% of students aged 18 to 23. As a result, the country has nearly 3 million students, or 30% of an age group entering higher education, an indicator of a dynamic nation.
The student population is set to continue growing, according to forecasts by the NAUM (National Autonomous University of Mexico), which estimates that 50% of the next generation will go on to higher education. This would entail the training of some 300,000 new teachers over the next 10 years. Structurally, most Mexican universities are built on a model similar to the French system, and 34 out of 39 are managed autonomously. Finally, while almost 50% of the Mexican population lives on an income below the poverty line, 300,000 students have access to the scholarship program.
Faced with these demographic and economic challenges, it’s hardly surprising that EdTech is experiencing significant and remarkable growth throughout Latin America. Firstly, because access to digital technology is ultimately easier than access to university. 73% of Mexicans living in urban areas have Internet access (compared with 40% in rural areas). And while 45% of those who are not yet studying want to make online courses their priority, the challenge of dropping out is a major one, as Andrés Fleiz, Product Director of BEDU, a Mexican education start-up, points out.
So how are EdTechs in the LATAM region responding to these challenges ?
Most players have opted for a mixed model, combining online training with face-to-face centers. Talisis, Aprende Institute or even Bedu, for example, offer learning paths via digital platforms as well as in person. With exponential growth of 40% in the Latin American region, e-learning has shown that the transformation of education is opening up new avenues that emphasize the need for personalized learning, up-to-date information, the use of digital tools and preparation for the real world of work.
This is why new entrants are making lightning progress on the market and attracting investors. Platzi, for example, which promises that 70% of its students double their salaries, while 20% set up their own businesses, has almost 2.5 million students in Latin and South America, around 800 courses focusing on both digital and soft skills.
“Our methodology has been created to help students thrive through acquired technological skills, soft skills, languages but also enable them to create a network of peers to help them find a job as quickly as possible or start their own business. What’s more, we give students the tools they need and the support of a community. In a region like Latin America, where inequality and lack of opportunity are high, this is particularly relevant. Every day, we see students increase their salaries up to tenfold after studying with Platzi for a year”, explains Platzi CEO Freddy Vega in a press release. The Mexican platform has also just raised nearly $60 million to continue its growth.
Other players are investing in the promising Mexican education market. One example is Slang, a Colombian company that is expanding into all Spanish-speaking countries, including the United States. Although its founder, Diego Villegas, is of Colombian origin, the project stems from research carried out at MIT. Its ambition is to solve the problem of English-speaking illiteracy, which severely penalizes the countries of Central and South America in their economic development, and in particular in their exchanges with their northern neighbors.
“It’s like a new generation of EdTech, in the sense that, until now, these technologies were essentially a process of digitizing traditional education. It was more like digitizing books or e-books, and then they tried to add a bit of gamification to it. Today, the core technology of EdTech is being developed with new infrastructure thanks to the advent of machine learning. So this combination of technologies has really allowed the new generation of EdTech, like us, to flourish, and we’re completely rethinking the way English is taught with a data-driven approach instead of the traditional digitized craft curriculum”, explains Diego Villegas.
Slang recently finalized a $14 million round of financing, and is pursuing its development, targeting not only corporate employees but also other learning audiences in Mexico and, more recently, Brazil.
While universities remain essential to the educational mission, certain groups who have not been able to access them also require training throughout their career paths. And there’s no denying it: most of the teaching and educational resources available online are in English. In the words of Diego Villegas, “We believe that English is in fact access to knowledge. We want to eradicate professional illiteracy. And professional illiteracy is the problem of professionals who don’t have a sufficient level of English to acquire online knowledge, which is massive. This is the reality for most people in Latin America.”
Nevertheless, Spanish remains the third most widely spoken language in the world, and while Mexico represents the largest Spanish-speaking community, the United States is also home to almost 20% of “Latinos”, making it the country’s largest cultural minority. Aprende Institute, an EdTech that has successfully spread from Colombia to Mexico and the United States, offers online training for the restaurant and gastronomy professions.
The social dimension of EdTech’s commitment in Mexico, and more broadly in Latin America, is undoubtedly more obvious, given the urgent need for LATAM countries to respond to the needs of all those who are still far removed from knowledge. Bedu’s founder, Mois Cherem Arana, had previously founded Enova, a social enterprise that designs, operates and develops technologies for blended learning centers in low-income areas of Mexico. Enova has over 2 million registered users, students of all ages who can learn technology and life skills. Mois has received 2 prestigious awards for its initiatives: the Harvard Kennedy School’s Rising Star Award and Ernst & Young’s Social Entrepreneur of the Year Award.
Are EdTechs a solution to some of the delays caused by a lack of resources or investment in fast-developing countries? Or are they the driving force behind accelerated access to knowledge for the most disadvantaged populations? The example of Mexico suggests that the two models coexist and complement each other effectively, to the great benefit of learners and their future employers.
What does Valentina Redondo, in charge of EdTech in Latin America for EdTech France, think ?
“First of all, it’s worth highlighting the dynamism of the EdTech market in LATAM, and in particular under the impetus of Monterrey, which is concentrating investment with the aim of becoming Mexico’s Sillicon Valley. However, Mexico is a very large federal state, with major disparities between the various regional states it comprises. As a result, the southern states are the least favored in terms of economic development, and digital access via the Internet is, to say the least, haphazard. During this health crisis, Mexican universities, most of which are privately funded, resorted to distance learning, with all the attendant difficulties for students. The positive impact of this crisis situation is to be found in the emergence of new players supported by investors mainly from the USA and Canada. Much of this effort is driven by the very strong demand for technicians and engineers from large North American companies based in the north of the country. But now, all levels of the Mexican education system are in demand of digital solutions, and things are moving fast.”
A number of local start-ups aim to bridge the social gap and make it genuinely difficult for students to access and validate the skills they need to enter the modern world. Digital platforms as well as social networks, such as Territorium, which also offers preferential access to courses at American universities such as Harvard. The platform features learning content adapted to the level of each user, as well as collaborative spaces to facilitate the work of teachers.
Another example of local dynamism is MisionAdmision, which helps students prepare for university admission. The platform offers access to online preparation materials and courses. It has an extensive repository of videos and exercises and tracks students’ progress, showing them where they stand in relation to others.
Enfin, on peut citer le cas de Collective Academy qui se présente comme une véritable université en ligne. Alternative digitale aux universités des grandes villes, son concept repose sur la connexion directe entre des professionnels aguerris du monde des affaires et de la technologie, et les apprenants, futurs décideurs du pays. Son slogan « la universidad que esta re-evolucionando la educacion para lideres en Latinoamerica », confirme l’ambition des acteurs de la EdTech au Mexique et leur vision d’un monde dans lequel tout évolue plus vite via le digital.
We’ll come back to the strong links that have been established between the French higher education model and Mexico’s education system in a future article. The strong influence that our culture exerts on the LATAM region certainly favors entry into this new territory for French EdTech.
Travel again and discover the EdTech market in the Nordic countries !
