Social Entrepreneurship in the Age of Disruption of Traditional Development is and other actions are urgent as alternatives to reduce the carnage that is faced by non state actors after the dismantling of USAID foreign aid by the new American Administration. This is the time for NGOs to urgently introspect and act now. This is the time to accept this situation NGOs cant change and is not in their control. None is sure if the three months waiting period will bring any difference . The new reality is that this has happened and people have lost livelihoods, families have been affected but there is an urgent need to act.
The Associated Press reported that USAID shutdown is upending livelihoods for nonprofit workers, farmers and other Americans. Relief Web states that the U.S. government’s decision to pause foreign aid for 90 days has already had dire consequences. Millions of children from war-torn countries depend on this support for basic essentials, education and mental health support. All of this and more is now at risk.
My considered view is that there is highly possibility that some countries may start reviewing or realigning their development aid as USA wields so much influence to the world as the global super power. This may also make NGOs find themselves in a similar predicament.
The way forward: Re-thinking NGO Sustainability.
- Strengthening regional philanthropy
Need to strengthen Pan African Philanthropy for African countries or Asian philanthropy for Asians in that order. - Embrace Social Entreprenuership
There is need for NGOs to pursue social entreprenuership instead of relying 100% on restricted funding. NGOs need to look at opportunities existing in the legal framework and pursue this idea. My organization Bulawayo Vendors and Traders Association already has one such enterprise through its commercial venture. It is selling an Insurance Package that covers Medical aid, Funeral cover, Insurance for stock and Hospital cash back plan for low income earners. This model of social entrepreneurship is gradually yielding positive results to unrestricted funding. - Establish domestic funding mechanisms
Countries like Zimbabwe just like South Africa must urgently introduce domestic funding models, i.e. where NGOs can apply for grants instead of wholly relying foreign aid. - Leverage on Community Share Ownership Schemes
There is need also to look at how Community Share Ownership Schemes can be modelled to support work of NGOs doing great work in communities. - Strengthen Corporate Social Responsibility Partnerships
There is a need to also explore ideas on Corporate Social Responsibility as models that can also support the work of NGOs, this may mean NGOs entering into short term to long term arrangements of managing community projects on behalf of some big corporations. - Institutionalising Sustainability in Development Aid
NGOs must also take a stand and introduce concepts that will compel development partners to invest sustainability models for organizations beyond lip service of sustainability as a concept. There has to be standards that NGOs set through their collective bodies like Nango Zimbabwe that should be binding to development partners. For example; if a partner is entering into an agreement with a local organisation, a certain percentage must be ceded towards sustainable investment. This idea may revolutionise aid, but I know it may unpalatable on the face value.
- Advocacy to influence policy decisions
NGOs may also engage in push back advocacy to.influence.policy decisions and raise awareness about the consequences of aid disruptions.
By Michael Ndiweni
Bulawayo Vendors and Traders Association – Executive Director
Statements in this article express my views not that of my organization and I write in my personal capacity
