Philanthropy Ecosystem in Africa: Assessing the philanthropic landscape in Africa to strengthen localisation, identify intermediaries and transform grantmaking
Complex challenges define the philanthropy space, globally and in Africa. Against a backdrop of a cost-of-living crisis, soaring energy costs, rampant inflation, unrelenting climate change, war in Europe, and changing geopolitical dynamics, affluent individuals and family givers, as well as philanthropic actors across the continent, are seeking new ways to address the escalating human needs and the complex challenges that persist and are emerging.
This global turbulence is further exasperated by the uncharted waters of the lasting effects of the Covid-19 pandemic, as we all work to find a way towards a “new normal”. Another key factor affecting the sector is the tragedy of George Floyd’s death in 2020 that re-centred the issues around racial justice and led to real conversations around our global history of colonisation and its impact and ongoing effects on philanthropic practice. One outcome from these introspections is the amplification of the “shift the power movement” as well as the drive towards “localisation” of development and humanitarian funding.
Understanding Regranting Ecosystems in the Global South: Regional Trends and Emerging Practices
Warande Advisory Centre is excited to spotlight the latest report by Ruta Cívica, Regional Trends and Emerging Practices: Understanding Regranting Ecosystems in the Global South. This publication offers key insights into regranting mechanisms and highlights innovative practices that strengthen local ecosystems, making it a vital resource for advancing equitable development.
At Warande, we share the report's commitment to fostering trust-based collaborations by building on the knowledge and capacities of local actors. Through our work, we see firsthand the power of regranting to channel resources effectively to grassroots initiatives, ensuring communities are at the heart of sustainable solutions.
Supporting local intermediaries through the Local Coalition Accelerator Model
The Local Coalition Accelerator (LCA) model brings together diverse local and national organisations (LNOs), leveraging their unique individual strengths to better address community needs and maximise humanitarian impact.
The coalitions are formed through an organic process, including a combination of referrals from peers and networks tapped into the communities they serve. After a vetting process and orientation, The Share Trust, Warande Advisory Centre and funding partners (Vitol Foundation, Conrad N Hilton Foundation, The Leona M. and Harry B. Helmsley Charitable Trust, and Margaret A. Cargill Philanthropies) provide the coalitions with technical and financial support for three to five years. This enables them to create shared governance systems, design Joint Action Plans based on community priorities and ultimately manage funding independently.
Empowering communities: a blueprint for locally led development and systemic change
Imagine a world where communities lead the charge in shaping their own destinies, where innovation thrives at the local level, and where true progress is measured by the empowerment of the most marginalised voices. What does this future look like, and how can we pave the way for its realisation through locally led development?
As we confront the complexities of global development, this question challenges us to rethink traditional approaches and embrace a new paradigm of locally led empowerment.
Shifting Power with Partners
Toolkit for implementing the DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Assistance. The DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Assistance, adopted in July 2021 underpins DAC members’ commitment to enable civil society’s contribution to the UN 2030 Agenda for Sustainable Development, and to protect and strengthen democracy.
The Recommendation guides DAC members and other development co-operation and humanitarian assistance providers in protecting and promoting civic space and working with civil society actors, underscoring enhanced effectiveness, transparency, and accountability.
A study by the Share Trust and the Warande Advisory Centre estimates the economic implications of shifting 25% of Official Development Assistance (ODA) - aligned with Grand Bargain and USAID commitments - from international to local intermediary structures.
The analysis estimates that local intermediaries could deliver programming that is 32% more cost efficient than international intermediaries, by stripping out inflated international overhead and salary costs. Applied to the ODA funding flows allocated to UN/INGOs in 2018 ($54bn), this would equate to US$4.3bn annually. The shift in funding is modeled using equitable rates, rather than business-as-usual rates which currently impede local actors from meeting the needs of their communities, resulting in an additional redeployment of $680m per year in salary and overhead costs to local actors.
As development actors for development transformation challenging dominant economic, social and political power structures in their societies, Local CSOs (LCSOs) in the global south must also do so within a global civil society ecosystem. It is one that continues to be largely dominated and shaped by the power, priorities and resources of CSOs and relationships emanating from the global north, including their governments. Increasingly LCSOs in the global south are challenging these power relationships, calling for development that is led and owned in the global south, ultimately achieving justice and equity over development priorities and over access to core and programmatic resources to CSOs in the global south.
While CSOs have adopted global norms that should shape these transformations, current practices remain inconsistent with the 2010 Istanbul Principles for CSO Development Effectiveness in important areas of equitable partnerships, solidarity and peoples’ empowerment. But CSO practices are also deeply affected by the political context in which they work, including donor and government policies and regulations.
Localizing Humanitarian Action in Africa
The global humanitarian community is increasingly emphasizing the importance of empowering local and national actors to take the lead in responding to and recovering from conflicts or disasters, particularly in regions vulnerable to such events, notably in the Global South. However, there is a significant lack of funding for local and national responders, especially in Africa, where civil society organizations (CSOs) struggle to secure sufficient support from both African and international sources. Reports indicate that African funders allocated only 9 percent of major donations to African CSOs between 2010 and 2019, while non-African philanthropists contributed 14 percent of their funding to these organizations.
Despite being the largest foreign assistance donor globally, with a contribution of $35.5 billion in overseas development assistance (ODA) in 2020, the United States directs a substantial portion of its aid, including $8.5 billion in 2020, to sub-Saharan Africa spanning 47 countries and 8 regional programs. However, a significant challenge lies in the limited direct allocation of these funds to national and local organizations. Despite Washington's expressed commitment to the "localization" of humanitarian aid, involving the transfer of decision-making power, program implementation, and resources to local and national actors, the actual realization of localized humanitarian assistance in Africa has yet to occur.
In this chapter (Chapter 1) Kuloba-Warria draws from her memories and experience growing up in a culture steeped in traditional storytelling to reflect on the way colonialism has shaped communications in the social impact space, and propose a different way forward.