Philanthropies and development funders in Africa lacking ‘awareness’ of the other’s work, report warns 

There is a ‘lack of awareness amongst philanthropies and development funders about each other’s initiatives and the impact they are trying to achieve’, according to a new Bridgespan report looking at how philanthropy and development funders collaborate in Africa. 

The findings by the global consultancy delved into philanthropy’s contribution to Africa over recent years. 

The Gates Foundation has been the dominant philanthropy in Africa since 2019. In that year, it contributed 51 per cent of the continent philanthropic contributions. In 2023, that figure stood at 39 per cemt, closely followed by the Mastercard Foundation (27 per cent).  

In 2023, philanthropy contributes $4.3 billion to Africa, with 9 per cent of that going through multilaterals.  

Bilaterals contributed $38.8 billion, 26 per cent of which also flowed through multilaterals. With these contributions, multilaterals disbursed a total of $36.4 billion to Africa. 

‘Aid cuts and uncertainty about the future of USAID, formerly the largest bilateral funder, come at a time when it’s clear that Africa has fallen way behind on meeting the UN’s 2030 SDGs,’ said the report. 

‘By one estimate, the continent needs an extra $194 billion a year to do so, a sum well beyond the financial reach of philanthropy.’ 

Multi donor trust funds have been on the rise in Africa, with multiple parties combining their financial resources into one pot.  

‘For philanthropy, joining a multi-donor trust offers several benefits: an opportunity to influence how a multilateral deploys resources, a seat at the table with government officials to influence policy, and a platform to extend its reach beyond what it could achieve through philanthropy alone,’ the report said. 

Interviewees in the report highlighted how old ways of doing philanthropy had to change. 

‘Philanthropy cannot continue to be done in the traditional way. Grants to nonprofit initiatives cannot just be the plan,’ said Dhun Davar, head of social impact and philanthropy at the Asia-Pacific division of UBS Optimus Foundation. 

Shafi Musaddique is the news editor at Alliance magazine.

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