African NGOs are increasingly and ‘overwhelmingly’ reliant on international funders, despite only a ‘small share’ of global funding going towards them, warns a Bridespan report.
Ninety per cent of the organisations interviewed in Kenya, Nigeria and South Africa received their first pivotal grant from a non-African funder.
Bridgespan’s report shows a major reliant on philanthropy from outside the African continent, via foundations and wealthy individuals, as well as multilateral aid such as the World Bank and bilateral agreements with foreign government aid.
‘Nine times more official development assistance (ODA) flowed into the three countries than international philanthropy in 2022, underscoring the importance of international philanthropic funding,’ it added.
Analysis included 85 NGOs across Kenya, Nigeria and South Africa with budgets over $1 million and interviews with the largest NGOs — including Lwala Community Alliance, BudgIT, LEAP Africa, Harambee and Desmond Tutu Health Foundation.
Bridgespan defines African NGOs as those with an Africa-based decision-making ‘locus of power’, factoring in the headquarters location, the composition of the organisation’s leadership team and board of directors, decision-making structures and norms, and the focus of the work on the ground.
‘We focused on South Africa, Nigeria, and Kenya because they are the largest economies in sub-Saharan Africa and have the largest and most mature social sectors on the continent,’ says Niloufer Memon, a Bridgespan partner and co-author of the report.
The consultancy group reports that ‘despite operating in an environment of funding scarcity and uncertainty, many of these NGOs are growing, innovating, are deeply involved in their communities, and are delivering powerful impact on the continent.’
Shafi Musaddique is the news editor at Alliance Magazine
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