How businesses can help civil society recover from USAID freeze

When US President Donald Trump ordered an immediate USAID freeze earlier this month, it sent shockwaves across Africa.

The stoppage has the potential to create a $12bn shortfall in aid for the most vulnerable people across Africa, with projects in healthcare and agriculture greatest affected.

As leaders of civil society organisations in Africa, we are deeply concerned by the impact this is already having on already vulnerable children and families.

As members of the Family For Every Child global alliance of locally-led organisations, we are witnessing across our membership and our movement how the abrupt funding suspension is disrupting essential services and eroding the gains made in the previous years’ programing. The worst may yet be to come, and we are currently suspended in a holding pattern. All we can do is wait to understand the full impact of the USAID changes. 

A survey we launched soon after the freeze order indicates that 80-90% of the African children and families our members work with are expected to be directly affected. This includes loss of healthcare, nutrition, child protection services, disruption in education and an increase in gender based violence. Furthermore, 88% of staff working for these African locally-led organisations are likely to be impacted.

In 2024 alone, USAID’s funding to Zimbabwe, where FOST runs a number of programmes supporting the children of migrant farm workers, amounted to approximately $359m. In Ghana, where Challenging Heights rescues and rehabilitates children from slavery on Lake Volta, we are facing a $187m financial gap. And in Kenya, where Pendekezo Letu (Our Choice in Swahili) works with vulnerable young people living and/or working in street situations, there is a $629m shortfall.

Can African businesses plug the gap?

The current corporate social responsibility (CSR) landscape is very different across Africa, but we believe the private sector can be a key player in ensuring our continent’s vulnerable children and families are not abandoned.

In Zimbabwe, we understand that the socio-economic environment has so far discouraged giving practices through high taxation and corruption. There are also no tax incentives in Zimbabwe for businesses to implement CSR.

A further factor is that local corporations witness international companies, especially in the mining industry, that sidestep CSR activities entirely. FOST can see that this refusal to engage is very demotivating for local companies who may consider corporate giving.

In Ghana, the CSR landscape is comparatively better developed, but has its own challenges. Companies’ CSR programmes are often not that visible, give very small amounts compared to international donors and, in the experience of Challenging Heights, desk officers often do not communicate promptly with applicants. Donations of goods and volunteers are easier to secure than funding.

It seems that international businesses in Ghana take their CSR responsibilities more seriously than local businesses, almost certainly because of laws in their mother countries. Challenging Heights believes a law mandating CSR will be essential to increase giving in Ghana.

Over the past decade, Kenyan businesses have increasingly recognized their role in addressing social, economic, and environmental challenges. According to a 2022 report by the Kenya Association of Manufacturers (KAM), over 60% of large corporations have formal CSR programs.

The Kenyan government has also played a significant role in promoting CSR through initiatives like Vision 2030, which encourages private sector participation in national development. Additionally, the Public Benefit Organisations (PBO) Act of 2013 provides a legal framework, fostering collaboration between businesses and civil society.

Currently, Kenya does not have specific laws mandating CSR. However, the Companies Act of 2015 encourages businesses to consider the impact of their operations on the community and environment. Some sectors, like mining and energy, have regulatory requirements for community engagement and environmental sustainability.

How can African businesses support local organisations?

Our plea to corporations is for them to have the will to partner directly with local civil society organisations (CSOs). We understand that African businesses are not in the position to replace the missing $12bn, but we also believe that they can step up their game.

Leaders of African CSOs, such as ourselves, are trying to look at our current dilemma through a positive lens, finding opportunities alongside what we have lost.

The withdrawal of USAID is potentially an opening to explore how we can reinvent what aid looks like across the continent. This is commonly referred to within the sector as decolonising aid.

Our current position is at the bottom of the food chain, with North American and European international non-governmental organisations acting as intermediaries between us and the funders. This is hugely wasteful of resources and means that work is ultimately controlled by people with little understanding of the local cultural landscape.

Direct partnerships between local CSOs and businesses can shift the power dynamics away from traditional, top-down aid models. Companies can support locally-led solutions that are more sustainable, cost-effective and culturally relevant, ensuring that development efforts are driven by the people they aim to serve.

We would like to see a future where African businesses regularly invest in long-term, meaningful partnerships with local CSOs. We need to move beyond short-term, one-off donations and focus on building the capacity of local communities to drive their own development. When businesses align their CSR activities with the real needs of the people, great value is achieved for both sides. Together, we can create a more inclusive, equitable, and sustainable future for all Africans.