By Fia van Rensburg, IPASA Knowledge Manager
Prof. Bhekinkosi Moyo and Jacob Mati, respectively Director and Deputy-Director of the Centre on African Philanthropy and Social Investment (CAPSI) shared their views with IPASA on the withdrawal of international aid. Our discussion followed on the recent public lecture by Binaifer Nowrojee, President of the Open Society Foundations, and the high-level panel discussion with H.E. Mrs. Graça Machel and Dr. Naledi Pandor, facilitated by Nicolette Naylor. Also see the related podcast featuring a conversation between Prof. Moyo and Binaifer Nowrojee.
Focus on new possibilities
Rational, analytical thinking cuts through the general sense of disbelief and chaos in the wake of the suspension and withdrawal of US aid to South Africa. Without minimising the immense immediate impact of aid withdrawal on the development sector in South Africa and the continent, Prof. Bheki Moyo and Associate Prof. Jacob Mati both point out the opportunities inherent in this crisis. Prof. Moyo’s message is clear: “Don’t panic. It (the withdrawal of aid) is not something new, although the scale is different. Another world is possible – we should not hold on to the past.” Jacob Mati echoes the same sentiments: “It is a blessing in disguise…there are plenty of opportunities in the long run, more opportunities than limitations.”
With the US Executive Orders in a way signalling the end of aid as we know it, Prof. Moyo points out that for the past few years, activists, academics and many funders have already been calling for more sustainable finance for the Global South. Some funders have moved to providing multi-year, general purpose grants and there is a growing realisation in the philanthropy sector that more sustainable giving is required if we want to reach the 2030 Sustainable Development Goals (SDGs), and the goals of the African Union’s Agenda 2063.
The two academics do not deny that there is a crisis – at least in the short term – as a result of the abrupt withdrawal of aid. But they have seen it coming and have been promoting the idea that African philanthropy infrastructure must be expanded and strengthened, so that Africa can play a stronger role in its own development and in determining the African development agenda. This is a key feature of CAPSI’s work, through teaching, research, knowledge sharing and convening of African philanthropy.
Reimagining development
Alongside the need to fill immediate funding gaps and reconfiguring available resources to sustain civil society, and realise the SDGs and AU development priorities, there is an almost unprecedented opportunity to reimagine how development must take place.
The current situation is a moment to address the longstanding risks related to the “fickleness of funding”. Pointing out that US funding was also withdrawn in 1979 by then President Ronald Reagan, Prof. Moyo says that ”funding resources can easily be withdrawn, irrespective of the funding source”. He says the antidote for this dilemma is to move away from funding projects and programmes, and to focus on movement building. “Movement building is not only about providing funding. It is also about understanding how communities work and how individuals within communities relate to each other and how they relate to the broader developmental programmes and trajectories of their communities and their countries. It is important to look at ‘old’ concepts like bridging and bonding social capital. We need to look at how we can enhance and build on relationships at a local level, but also to connect with other global role players.”
This renewal and transformation must take place at all levels of system, extending from communities to the creation of a global solidarity movement that has a diverse range of funding sources, and which is much less reliant on funding from the Global North.
Key levers for change
IPASA’s discussion with CAPSI also affirmed key messages from the lecture and panel discussion:
- Reimagining development from an African perspective will require ramping up investments in universities, research and innovation, which are essential catalysts for renewal.
- Continued encouragement of longer-term funding – 10 years and more – and the promotion of core funding is also needed. Reminding us of what we learnt from the HIV/AIDS crisis and COVID-19, Prof. Moyo emphasises the need to strengthen institutions and their capacity – “…otherwise you will be scurrying around every time there is a crisis”.
- Borrowing from feminist and women’s movements can be useful, particularly their strategy to focus on both immediate needs and long-term systemic issues. “Most of the problems we deal with, are social problems, and social problems are too complex to solve in one or three years.”
- Rethinking endowments, which are traditionally focused on preserving funding for the future. This may require considering “quasi-endowments”, which allows organisations to use part of the endowment for immediate needs. “The traditional American endowment does not meet the needs of Africa”.
Alignment with trends in philanthropy
The current aid crisis comes at a time when the need to transform the development sector and philanthropy has been at the forefront of debates in the sector, and when trends in philanthropy, amongst others, have showed for some time that foreign aid is diminishing, while African philanthropy is growing, and becoming more formalised. Prof. Moyo is emphatic that what looks like a crisis now, should rather be viewed as an opportunity for African thought leaders to reconsider relationships with the Global North, and to find ways to do things differently, in the interests of Africa and its people. “It is a good time now when African philanthropy is more organised than before. It is a wakeup call for philanthropies to reenergise and reconverge to see how to fill the gaps left by the withdrawal.”
Prof. Moyo also highlights that while the value of resources that have been withdrawn may appear to be extremely high at first glance, a significant portion of aid included administrative costs, or money that was recirculated to the Global North in one or other way (e.g., for technical assistance, procurement of goods, etc.). As a result, every dollar of funding for Africa did not necessarily reach beneficiaries on the ground: “A lot of the money was lost in the pipeline.”
Another important perspective is that Africa does have sufficient resources – what is required is to revisit how these resources are managed and used. “They are not properly managed and there are too many leakages in the system.”
The value of open conversations
Prof Moyo also sees CAPSI, as part of a university which has the ‘privilege’ of academic freedom, and IPASA which provides a platform for independent funders, as critical spaces for reflection on, and discussion of developments like the aid crisis. This could assist funders to remain calm and focused, while learning from others, and figuring out new ways of doing things.
Hope and possibility
The over-arching theme in IPASA’s discussion with CAPSI, the public lecture and the podcast is one of hope and possibility, and perhaps also a subtle sense of excitement. The funding crisis comes at a time when African philanthropy is stronger than ever, and when there is a heightened sense of agency to build resilience to withstand future shocks and carve out a new world where the African and Global South Agenda can be foregrounded.