Henri van Eeghen, CEO New Energy Nexus & Christian Meyer zu Natrup, Managing Director MzN International
The recent drastic cuts, including the scuttling of USAID and significant reductions in foreign aid budgets elsewhere, have undeniably shaken the international development and aid sector. Yet, every crisis brings an opportunity. This moment compels us to finally address the structural shortcomings of our sector—especially around genuine localisation.
For decades, international NGOs have relied on steady donor funding, but what if that era is fading? Could the end of easy donor dollars actually be the wake-up call the international NGO sector needs?
Opening the Vault, Not Just the Wallet
Many INGOs claim localisation achievements – but let’s face reality: while they’ve transferred some money, they’ve kept the vault locked. Financial power, especially unrestricted funding, remains firmly controlled by northern headquarters. Despite commendable progress in operational localisation, I’ve witnessed intense internal debates over unrestricted funds, clearly illustrating that true localisation demands letting go of financial control—not merely delegating project management.
For genuine change, local partners must become local owners of their organisations, driving their own strategies, growth, and leadership. This requires substantial investment in their organisational development and sustainability models—not just their capacity to deliver programmes. Historically, localisation has been too narrowly focused on empowering local management of projects. Real localisation involves a meaningful transfer of power and investment in sustainable business models, not merely operational responsibilities.
Example: I once worked closely with an East African NGO in partnership with a northern organisation. Initially, despite extensive field expertise, every significant financial decision required approval from northern headquarters, causing frustration and inefficiency. When drastic donor cuts forced headquarters to loosen their grip, the local NGO, supported by my colleagues at MzN International, swiftly developed a robust, independent financial business model within just 60 days.
Remarkably, in the following year, their income actually doubled despite global donor cutbacks. This rapid transformation was possible because local leaders fundamentally understood their financial dynamics, were highly motivated, and proved immensely attractive to diverse funders such as philanthropists, businesses, and impact investors.
Stewardship Beats Status Every Time
The era of ethnocentric leadership – dominated by northern experts dictating global operations – is over. Today, many genuinely motivated northern leaders want to overcome the inherent money-power dynamics prevalent when northern NGOs fund southern operations. As this funding structure inevitably evolves, we must also evolve our leadership approach toward true partnership, even if it means sacrificing northern INGO status, influence, size, and yes – jobs.
True localisation means transferring ownership of organisational development – decision-making, strategy, culture – to local organisations. It requires shifting from managing and leading to enabling and stewarding.
Facing the Critics
As advocates of genuine localisation, we must directly confront some common objections and misconceptions:
- “Local partners lack capacity.”: Actually, handing over real resources accelerates local capacity and accountability development.
- “Northern NGOs will lose relevance.” Far from it—by genuinely localising, northern NGOs become respected and credible partners rather than distant gatekeepers.
- “Donors won’t relinquish control.” Donors already withdrew funding. It’s now or never to redesign a genuinely localised aid system.
Three Immediate Actions :
- Embed Genuine Localisation in New Funding Models: As traditional donor aid shrinks, restructure your funding strategies to genuinely prioritise localisation.
- Reinvent Leadership Culture: Adopt stewardship principles actively. Host training and discussions promoting genuine partnerships and mutual respect.
- Demand Sector-wide Transformation: Push for policy shifts globally, advocating for radical restructuring of funding and governance towards genuine localisation.
We stand at a historic crossroads. By choosing genuine localisation, we create resilient, equitable, and sustainable futures—not just for our organisations, but above all, for the communities we serve.
Make sure to sign up for the upcoming webinar where we will share practical tips and insights. Click on the image below to register.
