As escalating crises and shrinking budgets pressure traditional donor-driven models, the aid sector stands at a crossroads. Official development assistance, or ODA, fell for the first time in six years in 2024 — a 7.1% decrease in real terms compared to 2023. Yet low- and middle-income countries require an estimated $4 trillion annually to achieve the United Nations’ Sustainable Development Goals. Recent cuts by major donors, including the sudden dissolution of the United States Agency for International Development and announcements to cut 40% of the U.K.’s ODA over the next two years, have increased the burden, highlighting the urgency for new, more resilient approaches.
While funding remains critical to scaling solutions, expected ongoing strain on ODA means a business-as-usual approach is insufficient. Shifting donor priorities are pushing organizations to rethink old models and pursue systemic reform in the humanitarian and development architecture. To deliver more efficient and accountable support, the sector is investing in digital infrastructure, harnessing data to demonstrate impact and build trust, and forging strategic partnerships to streamline and amplify efforts.
Devex and Visa, drawing from expert insights and a 2024 online survey of 998 aid professionals on digital payments, examine the challenges and opportunities within these areas to address the widening gap and contribute to more sustainable aid systems.
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