By Zuziwe Khuzwayo, IPASA Project Manager: Social Justice
Making sense of disruption
Processing the recent freeze and suspension of USA funding inevitably involved assessing the immediate and devastating consequences for not only organisations and how they operate, but also for people who rely on this aid for sustenance and medical care. Perhaps unsurprisingly, taking stock of the implications of the abrupt withdrawal of funds that have been instrumental in the fight against HIV/AIDS and TB and which supported a range of other critical needs, is shaping a realisation that this crises – not the first to occur – can be an opportunity for local philanthropy – to optimise their own ability to address prevailing structural inequalities that underpin these serious yet treatable diseases and other societal problems, and to build a more equitable South African society.
The disruption caused by the USA’s Executive Orders to ‘Reevaluate and Realign United States Foreign Aid’ include immediate consequences, particularly for health and education programmes in South Africa, and for staff involved in US-supported programmes[¹1][²][³]. Amidst fears and anticipation that the long-term impacts of aid suspension could weaken civil society and exacerbate poverty and inequality, there is also a realisation that much needed reforms of international aid have not materialised. As much as there have been previous critiques of foreign aid, limited progress has been made to ensure that aid and other funding focus on changing structural inequalities, and coordinated, intentional efforts to address dependence on foreign aid has been absent.
Learning from previous crises
Previous crises such as the HIV/AIDS epidemic and more recently the COVID-19 pandemic have compelled collaborations between civil society, the state and other actors such as philanthropy. However, what was missing from these previous collaborations is that it did not focus on addressing the structural inequalities that have existed pre-crisis, even though there was widespread acknowledgement that structural inequalities have intensified the impacts of these crises for those who were the most vulnerable and had the least resources to respond to it.
Against this background the current aid crisis is not only a difficult moment that requires immediate action – it also calls on local philanthropy to question the neo-colonial[⁴] framework that largely underpins development work, and to reimagine a development framework that is more inclusive and equitable for all citizens.
Understanding connections and root causes
A first step for local philanthropy to make this shift a reality is to recognise how development challenges are connected and intertwined. For example, in education, structural inequality [⁵] related to malnourishment that affects children in the classroom, cannot be ignored when addressing education issues and outcomes. Similarly, structural inequality affects the extent to which citizens can access their rights pertaining to climate change or economic disparity.
The July 2021 protests in South Africa highlighted the urgency to address established intractable structural inequality through an ecosystem approach that will have long-term sustained benefits for all. This approach is nothing new, but typically, funding rarely foregrounds the connections between complex issues, and most funders do not explicitly aim to address the root causes of inequality.
Without exception, development issues relate to some form of social injustice, and this requires strategic approaches that transcend the silos of funding, uncover connections, and promote funder collaboration. This is what the Social Justice Donors Group (SJDG), which is coordinated by IPASA, aims to do. The SJDG encourages donors to view and understand the relationships between different forms of injustices; how they can be addressed by funding the root causes of these issues; and what collaboration can take place to support civil society in addressing these issues.
Optimising the current context
The suspension of Aid comes in the year that South Africa chairs the G20, under the slogan ‘Solidarity, Equality and Sustainability’. These three words are familiar to civil society – they inform approaches that are commonly used by civil society organisations, and the time has come for philanthropy to consider how these words relate to their funding practices. It signposts the need for funders to:
- Collaborate with other funders to support civil society when needed, thereby building solidarity in civil society that discourages a fragmentation approach and competition for funding;
- Consider if, and how their funding contributes to a more equitable society for all; and
- Embrace funding practices that builds and strengthens the civil society ecosystem, through, amongst others, long-term systemic funding to civil society organisations.
The current context is not only defined by the withdrawal of aid – it also provides opportunities for multilateral collaboration in the G20, and working towards common global development goals as encapsulated in the 2030 SDGs.
- The 2025 G20: South Africa’s leadership of the 2025 G20 presents a unique opportunity to shine the light on social justice work and the ecosystem in which it operates. There is an opening for local philanthropy to ensure that civil society organisations are represented as much as possible in the different spaces and processes of the G20 in order to ensure not only that their voices are heard, but to highlight and address structural inequalities and unequal power relations that continue to harm broader society.
- The Sustainable Development Goals (SDGs): In 2023 South Africa recommitted itself to the Sustainable Development Goals (SDGs) pledge for transformation in several critical areas, including the just energy transition, climate finance, digital inclusion, women’s empowerment, and biodiversity protection. It is essential that this important work, which is clearly prioritised by government, must occur in an integrated manner that recognises connections and breaks down silos. The SDG’s offer many benefits by creating a shared global framework for improving lives and decreasing harm towards the environment. For those interested in addressing social justice, the SDGs provide a path to see the connections between the different forms of inequality that occurs (climate, education, gender inequality, health, etc.). It also shows how corporates, government, civil society and philanthropy can work together in trying to achieve the goals. The G20, like the SDGs, offers an opportunity for philanthropy to advocate for equality through a social justice lens that will be beneficial for all.
Opportunities for civil society
It’s not just philanthropy that can use these platforms to tackle structural inequalities. Civil society, as it has always done, can also leverage these spaces to highlight the connections between issues, and propose innovative approaches and new ways of working that move away from colonial frameworks.
Civil society should also use the opportunity to critically reflect on what sustainability means, and what changes are required for civil society organisations to become sustainable. This includes collaborating more with each other, reducing competitiveness , organisational and staff capacity building, and building financial reserves to provide stability during challenging times. Philanthropy can enable this by taking a long-term view and providing sustained support to civil society organisations.
Radical change and courage
Shifting the power has been at the forefront of discussions in global philanthropy in the past few years, and some radical changes have occurred – some of them quite controversial, e.g., the approach followed by Mackenzie Scott. A recent CEP report has found that civil society organisations welcome this new approach, and they would like other funders to follow suit, to enhance their sustainability. However, her approach has also been criticised, and concerns have been voiced that civil society organisations may not have the capacity to absorb and manage such large amounts of funding; that grantees could “fall off a financial cliff” once Mackenzie Scott’s funding boost runs out; or that civil society organisations may not be able to attract further funding due to perceptions that they do not need it after receiving large grants.
Generally, civil society organisations have welcomed innovations that are enhancing their sustainability. This includes initiatives that address the existence and impact of unequal power relations between funders and recipients of funding. The withdrawal of aid has brought urgency into debates on power relations in philanthropy, highlighting that Global South funders could potentially play a much stronger role in the current context. Recent changes make it possible for local philanthropy across the Global South to fast-track reimagining, advocating for, and implementing different ways of working in collaboration with civil society, to build a truly just society – a society where everyone’s basic needs are fulfilled, enabling individuals to seize opportunities and engage on an equal level with others.
[¹] https://www.linkedin.com/posts/tarapolzer_this-is-how-the-aid-freeze-is-impacting-major-activity-7297153193849839616-etil/
[²] https://www.dailymaverick.co.za/article/2025-03-04-usaid-funding-cuts-end-vital-hiv-programme-for-sa-orphans/
[³] https://www.siiafrica.co.za/project/us-stop-order-all-social-development-sectors/
[⁴] Neo-colonialism is an ideology that argues even after gaining political independence, some countries remain tied to their former colonizers through economic, political, or ideological dependence. Originally, this idea referred to the relationship between the United Kingdom, France, and their former colonies. Over time, it has come to describe any unequal relationship between two nations, whether or not they ever had a formal or informal connection in the past.
[⁵] Structural inequality refers to the gaps in wealth, resources, and opportunities caused by unfair practices within institutions like the legal system, schools, businesses, governments, and healthcare systems.