What are the main challenges, risks, and trade-offs (e.g., mission drift, instability, conflicts of interest) associated with pursuing strategic autonomy and implementing associated business models for NGOs/CSOs in Africa?
The key challenges, risks and trade-offs associated with pursuing strategic autonomy and implementing associated business models for NGOs/CSOs in Africa are multiple and interrelated.
A major challenge is maintaining independence and autonomy in the face of the need to diversify funding sources. The risk of co-optation by government agencies or the political opposition is high, particularly in non-competitive regimes and new democracies, where positions or contracts may be offered to NGO leaders. Moreover, the public may distrust NGOs, perceiving them as working for the government or the opposition. Another risk is becoming agents promoting the specific interests of donors seeking to advance their own political agendas, especially in the absence of clear independence and compliance policies. Dependence on donor funding can indirectly undermine the capacity of institutions and threaten their autonomy and sustainability.
The pursuit of own-source revenue generation can lead to mission drift. If NGOs focus excessively on profit-making activities to secure funding, they risk straying from their core social objectives and becoming more like consulting firms, hampering their ability to pursue an independent research agenda. This monetization focus could also minimize community ownership if programs are not specifically designed to build local skills and capacity.
Instability is another risk. Although diversifying financing aims to increase sustainability, new business models can be unstable or unreliable if they are not managed effectively or if they are affected by external shocks.
Southern NGOs often have limited capacity to implement new funding approaches and complex business models. They may lack the clear vision and mission needed to articulate their role and attract diverse funding.
Conflicts of interest can arise when seeking partnerships with the private sector or political actors. It is crucial for NGOs to have transparent policies to manage these potential conflicts and maintain their credibility and impartiality.
The rigidity of the legal and political system in some African contexts poses an additional challenge, which can hinder the implementation of self-reliance strategies and participation in development activities. Moreover, excessive reliance on short-term, project-based international funding can hamper NGOs’ ability to invest in their core activities and ensure long-term financial stability. Reduced donor funding, as observed in Botswana, can even lead to the closure of dependent NGOs.
Finally, it is important to note that the traditional project-based funding model in sub-Saharan Africa has indirectly undermined the capacity of the region’s institutions. NGOs must therefore strike a balance between seeking new sources of funding and remaining faithful to their mission, while also strengthening their internal capacities to ensure their long-term sustainability and impact.
