INTRODUCTION

As I browsed through the valuable publications produced by IRED over the years, a veritable treasure trove of lessons on alternative financing, it seemed essential to me to extract the sap from them to nourish our collective reflection, particularly in these uncertain times when autonomy is no longer an option but a vital necessity. These writings, the fruit of years of experience and analysis, highlight with sometimes brutal clarity the challenges we face, but above all outline concrete avenues for action.

In line with our recent discussions and to contribute to the momentum we wish to foster, I offer here a rereading of these lessons. I will first return to the implacable observation of the impasse of the current model (Section 1). I will then address the real issue: how to build, stone by stone, this much-sought-after financial autonomy (Section 2). Then, I will present the “weapons” – the tools and instruments – at our disposal to lead this peaceful fight for independence (Section 3). Finally, I will highlight the essential conditions, the rigor and ethics necessary for our efforts to bear fruit and lead to victory (Section 4).

1- THE OBSERVATION: THE BANKRUPTCY OF A SYSTEM AND THE URGENCY OF “ANOTHER DEVELOPMENT”

Let’s be clear: IRED’s publications present a harsh indictment of the dominant financing model. Foreign aid, as it is often practiced, is put in the hot seat. Sometimes described as “gift aid,” it is accused, rightly I think, not only of “killing initiative” but worse, of “perpetuating dependency” (Financer Autrement, p. 57). How can we build the future on a system that, fundamentally, does not favor the “creation of capital/reserve, the driving force behind the increase in self-financing resources” (Financer Autrement, p. 51)?

The observation is there, implacable: we “continue to demand an increase in self-financing, but [we do not provide] the means” (Financer Autrement, p. 49). Faced with this flagrant contradiction, the call for “another form of development” resonates forcefully. An endogenous, participatory development, driven by “farmer leaders, artisans, fishermen, breeders, women and men engaged in the struggle” (Financer Autrement, p. i) at the heart of their communities.

This other development cannot come about without a “new partnership” (Financing Differently, p. 407). This is not a simple cosmetic reorganization, but a profound transformation of the attitudes and practices of all actors: organizations from the South and the North, governments, businesses, researchers, banks, and even international aid itself (Financing Differently, Chapter IX). We must dare to rethink relationships so that local voices can “better express themselves” (Financing Differently, p. 7) and co-construct their future.

2- THE REAL CHALLENGE: BUILDING AUTONOMY STONE BY STONE

Faced with this observation, the strategic objective is clear: to achieve our financial autonomy. But how? The writings of the IRED show us the way, not the easy way, but the way of patient and methodical construction. It is not just a matter of finding money, but of responding to multiple needs, financial certainly (for activities, support, training, institutional costs – Financer Autrement, p. 31), but also non-financial, notably in “training their staff and creating competent design offices” (Financer Autrement, p. 30) to control management and risk.

The key lies in a proactive strategy, far from passivity or wait-and-see:

• Mobilizing local resources: This is the essential starting point. Taking an “inventory of physical, human, and financial resources, both internal and local (Financing Differently, pp. 63-68), using tools such as the “village inventory” (Financing Differently, p. 104). Starting by “relying only on oneself (contributions, own efforts, work, etc.)” (Manuel de Gestion Pratique-Tome2, p. 25) is often the healthiest approach.
• Developing profitable economic activities: Dare to be an entrepreneur! Create “businesses […] by NGOs/OOs” (Finance Differently, p. 84) to generate their own revenues and reinvest in the social mission. Of course, this requires a rigorous viability analysis (Finance Differently, p. 73).
• Better manage and negotiate aid (to get rid of it!): As long as aid is there, we must “know how to negotiate better” and above all “know how to better manage existing aid” (Financing Differently, p. 99-100). The objective? To use this aid to “finance the unfinanceable” and above all, to “build up reserves” (Financing Research Manual, p. 110, p. 165).
• Planning the End of Assistance: This is perhaps the most crucial and least practiced point. We must dare to “plan the end of assistance” (Practical Management Manual – Volume 2, p. 25) to avoid remaining eternally dependent.
• Building up reserves and equity: This is the crux of self-reliance. Focus on the ability to “build up reserves and equity, and invest them so that they earn interest” (Funding Research Manual, p. 165). Without equity, dependency is inevitable.

3- WEAPONS OF AUTONOMY: TOOLS AND INSTRUMENTS TO MOBILIZE

Faced with the reluctance of traditional commercial banks that “only lend to the rich” (Manuel de Gestion Pratique-Tome2, p. 27), IRED publications reveal an impressive array of alternative financial tools and instruments, often derived from local creativity or adapted to our contexts. These are our true “weapons” for achieving our financial independence:

• Mobilizing local savings: Recognize and promote all forms of savings, from “hoarding” to “grain banks,” from “tontine” dynamics (Financer Autrement, p. 124) to mutual “savings and credit unions” (Financer Autrement, p. 109-132). Savings are the foundation!
• Appropriate credit access mechanisms: Multiply initiatives such as “women’s banks”, “village banks”, “loan shops” (Financer Autrement, p. 165-173) and explore “credit risk insurance” systems (Financer Autrement, p. 201-208).
• Equity investment: A bold way to support local businesses while generating income for the organization (Financer Autrement, p. 215-227), like SIDI (Financer Autrement, p. 219).
• Guarantee systems: Use traditional guarantees, but also develop local or international guarantee funds (Financing Differently, p. 228-255), such as the “Banking Guarantee” from RAFAD (Strengthen Financial Autonomy, p. 2), to open the doors to bank credit.
• Sustainable structures: Consider the creation of “Trusts, funds and foundations” to ensure long-term self-financing (Financing Differently, p. 256-267).
• Specific financial instruments: Developing “venture capital”, “promotion capital”, “intermediary financial institutions” or dedicated “funds/capital” (Financer Autrement, p. 269-342), drawing inspiration from experiences such as that of ORAP in Zimbabwe (Financer Autrement, p. 343-347).
• Alternative opportunities: Explore debt swaps, block funds, Program Related Investments (PRIs), or funds from the sale of food aid (Financing Differently, Chapter VIII).

This diversity of tools shows that there is no single solution, but a range of possibilities to be adapted and combined intelligently.

4- CONDITIONS FOR VICTORY: RIGOR, COMPETENCE AND ETHICS

Having the right strategies and tools is not enough. For the quest for autonomy to succeed, for the “victory” to be sustainable, strict conditions must be met. IRED’s practical manuals place great emphasis on these aspects, and they are right. These are the foundations of our credibility and effectiveness:

• Institutional competence and capacity: It is imperative to strengthen our internal capacities in financial management, monitoring, and evaluation (Financing Differently, p. 354). Without solid skills, the best intentions fail.
• Absolute Management Rigor: Financial management must be impeccable. Budget planning (“No overruns are allowed” – New Management Manual, p. 170), record keeping, inventory tracking and depreciation (Practical Management Manual-Volume 2), clear distinction of roles (cashier/accountant – New Management Manual, p. 170). Rigor is not an option, it is a duty.
• Democratic and ethical control: Money must not corrupt. Internal democratic control mechanisms are essential (Finance Differently, p. 357). Furthermore, any financial investments must be guided by clear ethical principles (Finance Differently, p. 362), as exemplified by the Banque Alternative Suisse (Finance Differently, p. 363).
• Legal and fiscal clarity: We must secure our initiatives by clarifying their legal status and controlling the fiscal aspects (Financing Differently, p. 359).
• Strategic partnerships: The choice of financial partners is crucial (Financing Differently, p. 361). Collaboration and networking with other organizations are also a strength (Financing Differently, p. 370).
• Impact-oriented monitoring and evaluation: Knowing what you’re doing is good; measuring the actual impact is better. It’s necessary to define clear “criteria” and “indicators” (Practical Management Manual – Volume 1, p. 18).

CONCLUSION: THE TIME FOR ACTION HAS COME

CONCLUSION: THE TIME FOR ACTION HAS COMEThe convergence of analyses from the various IRED publications is unequivocal: a profound transformation of the financing of our organizations is not only desirable, but vital. Financial autonomy, far from being a utopia, is within our reach if we collectively mobilize our intelligence, energy, and creativity.

The strategies exist, the tools are there, the conditions for success are known. It is now up to us, the actors engaged on the ground, to move resolutely into action, to appropriate this knowledge, to adapt it, to implement it with rigor and determination. Building our strength, as discussed in our discussions based on Fernand Vincent’s paper, also requires this conquest of our economic and financial sovereignty. It is an immense, but exciting, and essential project for the future of development truly controlled by Africans for Africans.

Let’s reinvent our models, pool our strengths, and together build the autonomy that will allow us to make a lasting difference.

Douala, April 2, 2025.

Paul Gabriel FOLEU