Rwanda and Ethiopia lack clarity in their philanthropic regulatory framework. 

According to two reports published by the East Africa Philanthropy Network analysing each country’s philanthropic landscape, huge gaps persist in holding back the development of Rwandan and Ethiopian philanthropy. 

In Rwanda, ‘there is no standardised definition of philanthropy or public benefit organisations in Rwandan law, and concepts like impact investing and venture philanthropy are not well understood.’  

‘Additionally, there is no national philanthropy policy framework to guide legislation and broaden the definition of ‘investment’ to include various forms of philanthropic activities,’ the report adds. 

The network warns that the concept of ‘public benefit’ must be widened to include philanthropy ‘engaged in commercial activities or pursuits beyond poverty alleviation.’ 

In Ethiopia, a similar climate persists. 

‘Legal regimes governing charities and nonprofits exist, yet lack coherence,’ says the network. 

The reports adds that both domestic and international funders contribute, ‘yet accessing resources remains a hurdle, especially for grassroots initiatives.’ 

Enhancing accountability is among the key recommendations for Ethiopia’s philanthropic actors, while in Rwanda, increasing public awareness about the country’s philanthropies and using technology is advised.  

Non-Governmental Organisations (NGOs) constitute the largest share of Rwandan philanthropy, comprising 22 per cent of the major players. Community foundations consist of 8 per cent of the landscape provide essential grassroots, while the report alludes to the influence of politicians, who consist of 2 per cent of philanthropy via their influence in policymaking and allocating resources.  

Shafi Musaddique is the news editor at Alliance Magazine