Opinion: African philanthropy promises dynamic responses to local needs

Africa has the capacity to support progress toward sustainable development, and local philanthropy must become part of the development and humanitarian landscape. The continent is getting richer. From startups to manufacturing, Africa is seeing a surge in private investment — and a corresponding expansion of personal wealth. Combined with rising rates of higher-education enrollment, a new generation of entrepreneurs harnessing technology, and the world’s youngest population, Africa’s growing affluence could help move hundreds of millions of people out of poverty in the coming decade. Yet this burgeoning prosperity is overshadowed by a spate of government debt crises and cuts in international aid that together have reduced funding for essential health care, education, and infrastructure — the bedrock for transformational economic development. Local philanthropy can help plug the gap. Although it is not a substitute for public spending, Africans are meeting the challenge with African resources. According to a 2023 report from Charities Aid Foundation, three of the 10 most generous countries — Kenya, Liberia and Nigeria — are in Africa. No matter how large or small the gift, local assistance is essential, not least because locally led development is more equitable, impactful, and sustainable. Local philanthropy can make a difference for the future of the continent’s development goals. Global and African philanthropists can co-create and co-invest to tackle seemingly intractable universal challenges. Such initiatives not only enlarge the pool of resources but recognize that local leadership and ownership foster long-lasting development. The slowing global economy — precipitated by the effects of COVID-19 and the war in Ukraine and dragged down by high inflation and interest rates — has hit African nations especially hard. Ethiopia, Zambia, and Ghana have defaulted on debt repayments in recent years, and more than a dozen countries face credit downgrades and fiscal distress as cash from abroad dwindles. This has led to a wave of austerity in Africa, with governments curtailing planned investments for years to come. These factors erode efforts to reach domestic resource mobilization — necessary for programmatic sustainability — to contribute to attaining development goals. The situation is worsened by a weaker commitment from high-income countries experiencing their own economic turmoil. The Global Fund to Fight AIDS, Tuberculosis and Malaria fell more than $2 billion short of its $18 billion target for the 2023–2025 round of funding. Money earmarked for USAID global health programs in the 2025 U.S. budget declined by about $175 million. Both the Global Fund and USAID encourage private sector involvement in disease-control programs. However, the public sector engagement strategy of USAID has a list of groups in the definition of private sector that does not include home-grown philanthropies. As complex crises worldwide compete for scarcer resources, philanthropic giving by Africa’s clutch of newly minted millionaires can make a difference. The latest Africa Wealth Report estimates total private wealth of $2.4 trillion is held on the continent and that 138,000 high-net-worth individuals live in Africa. Mobilizing this tremendous potential for positive social change requires concerted efforts. Crucially, giving within and across countries can moderate the wealth gap in Africa, where high income is concentrated in a few major economies and yet lower-income nations are more prone to crises. Existing networks, like the African Philanthropy Forum — which brings together more than 3,500 philanthropists and social investors — can help deconcentrate assistance to realize the forum’s vision of local aid exceeding international aid by 2030. Such platforms can also advocate for policy changes, such as tax laws, create incentives to give across borders and promote meaningful reform of corporate social responsibility to remove the stain of greenwashing. Capacity and institution building can ensure philanthropy targets priority areas, which differ from country to country. Robust digital tracking systems can ensure resource allocation is more transparent, accountable, and inclusive. Philanthropic enterprises led by Africans, in which funds flow through local, national, and regional implementers, can support the African Union’s aspiration for a prosperous Africa that is inclusive, integrated, well-governed, democratic, and peaceful. Local philanthropy would promote African perspectives and values in development initiatives, rather than copying those of high-income countries, to ensure projects are responsive to actual needs and elevate voices of local stakeholders. And local giving promises more dynamic and agile responses to problems and opens space to test innovative, disruptive ideas. For international donors, aligning assistance with local philanthropy and social investment would help avoid duplication and waste. The international community can support local groups with evidence-based interventions that address root causes of systemic challenges. Such collaboration would unlock additional resources and promote the exchange of expertise between partners, including identifying and adapting successful models from other countries. Current economic realities, whether it is the grim state of public finances in Africa or diminished will from the international community, may force this new approach to funding. But it’s a change that is long overdue. Africans must have a say in setting their own agendas, in finding solutions and in contributing the resources necessary to make those solutions a reality. Now is an opportune time to look for answers at home and retire the narrative of Africa taking its begging bowls to other countries. Dig into Roots of Change, a series examining the push toward locally led development. This is an editorially independent piece produced as part of our Roots of Change series. Click here to learn more.