By Louise Driver, Executive Director of IPASA
Only three months in, and 2025 has already emerged as a pivotal one for philanthropy what with the catalytic changes taking place in the world – drastic shifts in leadership, looming trade wars, public health emergencies, climate-related disasters and a rise in hate and polarisation. There is significant uncertainty over the possible implications of these developments for funders both locally and globally. But experience shows that it is precisely in moments like these when philanthropy can rise to the challenge by stepping up to fund critical initiatives, driving innovation, uplifting community voices, and building resilience in the face of adversity.
The current most challenging change is the withdrawal of the USAID funding in South Africa. The impact is disastrous with the immediate consequences of immense job losses, shutting down of NPOs offering critical community health services and the drastic reduction of, or end to, life-saving HIV treatment and prevention and care services for vulnerable groups and communities. It is inevitable that the longer-term impact will be felt across all funding focus areas education, youth employment, ECD, GBV, and the list goes on. Philanthropy thus needs to look now at addressing not only the immediate impact of the crisis but also at the forecasted long-term consequences. We cannot afford to wait and watch as the situation further deteriorates – we need to take this opportunity to grow local philanthropy, build civil society and strengthen our local philanthropy ecosystem.
At the same time, in this crisis it is important that we build partnerships between local and global philanthropy. More than ever South African philanthropy needs to learn and share with other key stakeholders in the global philanthropy ecosystem how best to respond to a constantly evolving, volatile changing world. The South African G20 presidency this year is offering us this opportunity with local philanthropy having the chance to actively engage with civil society, business, government and global philanthropy in contributing to the G20 agenda. Hosting the G20 Presidency this year, provides a platform for advocating for philanthropy’s role in contributing to the South African G20 priorities. This role goes way beyond just funding G20 activities- it involves providing technical expertise, convening and co-ordinating networks with cross-sector stakeholders, supporting and strengthening civil society efforts, providing data and evidence for recommendations, all to ensure continuity and implementation beyond the G20 South Africa presidency.
The Trump administration’s approach to global aid and multilateralism has exposed the fragility of reliance on foreign funding. The precariousness and imperfections in the global aid system is nothing new, but the instant disruption of this system that philanthropy and other stakeholders tried to transform gradually has created a reality much harsher than what we could have ever imagined. But it has also created conditions that are ideal to build a new and more equitable system for development and philanthropy, where Africa takes responsibility for setting and promoting its own agenda, and for optimising African resource mobilisation.
In our first quarter newsletter we look back at the crisis which has emerged over the past few months while looking ahead at the array of opportunities which are unfolding for local philanthropy in South Africa – the potential role in the G20, the chance to grow and strengthen the local funding ecosystem and the opportunities to build and strengthen partnerships and connections in the African and international arena. As Albert Einstein said ‘In the midst of every crisis lies great opportunity’ – let us focus on this in strengthening and transforming philanthropy in South Africa.