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Funding Strategy Update in 2022

  1. Funding Strategy Update in 2022 14 December 2021
  2. WHAT Chris Meyer zu Natrup Managing Director MzN International We build better NGOs We help NGOs to be funded better Hello... Mike Shanley Founder and CEO at AidKonekt Data
  3. Alignment to donors? VS. Portfolio management!
  4. 1. What not to align a. Your mission statement and values b. Your personality as an organisation & team c. What you will, and will not, do 2. Activities vs Mission match? No donor matches your mission, but many of your activities 3. Searching for donors for current programmes is less efficient. -> Search for future ones. 4. Look beyond the usual suspects Some thoughts...
  5. 1. Donor mapping: lead by activities, then by country 2. Most funding is not grants 3. Three basic steps a. Compose ideal funding portofolio b. Plan roadmap c. Execute with metrics 1. What activities produce the results that achieve your organisation’s objectives? 2. What type of funding do you need to perform these activities better than anyone else? (funding type should enhance your UVP - Unique Value Proposition) Before you start Kick off strong into 2022
  6. Funding trends in 2022 - selected institutional donors
  7. 1. Go fast Average bidding time now 28 days 2. Go local, seriously a. USAID aims 25% (currently 6%) goes to local organisationy by 2024. 50% by 2030 b. SA, Kenya, Nigeria, TZ, Ethiopia lead in localisation c. Health & Democracy focus 3. Go green, now ($80b in 2019 to $118b in 2025) a. Germany ($8.5n in 2019) b. Japan ($6.3b in 2019) c. EU ($5.6b in 2019) d. France, UK, USA 4. Go for health, gender & education
  8. The Global Donor Landscape changes … completely BIGGEST LOOSERS ODA 2018 - 2020 declines most (%, top 3) UK Netherlands Italy BIGGEST RAISERS ODA 2018 - 2020 increases most (%, top 3) Germany France Norway
  9. The Global Donor Landscape changes … completely 2020 TOP 5 (in USD, absolute) US Germany UK Japan France 2021 TOP 5 (or 6) ( USD, premlimery) US Germany EU UK France / Norway EU 2022 TOP 5 ( USD, MzN estimate) US EU/ Germany OECD Finance Institutions Nordics EU France ????
  10. ● Increased focus in East Africa (Ethiopia and Kenya); Afghanistan; Jordan; 2 quarters of record investment in LatAm & Carib ● Majority health and health systems (Global HIV, Malaria, TB) (Huge increase in Ethiopia) ● Program management (including for cyber security, research and medical institutions, supply chain) ● Education (Huge investment in Kenya, some in Nigeria, Senegal) ● Democracy & Human Rights (Latin Am, Eastern Europe, Afghanistan, Jordan) Recent strategic shifts: ● Biden focussing on COVID response, climate (Ag, Resilience and Energy), democratic reforms and conflict-affected states ● Much less focus on trade and economic growth than recent years ● Future focus on gender (has appointed a new role, rescinded the Mexico City Policy (global gag rule for SRHR), new funding for women’s empowerment, education and health ● Aiming for countries to be self-reliant 10 US - USAID and DoS
  11. ● Europe and neighbourhood see NDICI - Global Europe for 2021-2027 priorities: 1) Human development, 2) Social inclusion, 3) Gender equality, 4) Climate change, 5) Environmental protection, and 6) Migration-related actions) ● Africa partnership Roadmap to cooperation with Africa including priorities: 1) green transition and energy access; 2) digital transformation; 3) sustainable growth and jobs; 4) peace and governance; and 5) migration and mobility ● Still a long term partner to LatAm countries Priorities: 1) innovative cooperation approaches; 2) reducing disparities between people; 3) sustainable development; 4) climate change; and 5) higher education & research ● Research funding through Horizon 11 EU - many pots
  12. Recent strategic shifts: ● Focus on catalysing private investment in health ● Increasing focus on gender mainstreaming throughout programmes ● Continued focus on science, technology and innovation ● Continued focus on climate change (incl food, energy, biodiversity, oceans) ● Decrease in overall funding available due to UK leaving (‘Brexit’), but balanced out more than expected by France & Germany 12 EU Cont’d.
  13. 13 EU Cont’d. Top tips for 2022 Scan systematically (over 20 released per average business day) and strategically (Remember targeting: geography + thematic + person/committee monitoring = advance, relevant knowledge) Have surge capacity ready (100% to 300% on top of core team in Q1 and Q4) Focus or link thematically on climate , partnering with finance institutions, and democracy support (incl. gender mainstreaming) in EU target locations Plan pipeline post award (award is about 60% completion of the timeline) and Portfolio composition (do you really want to be an donor implementor) Acquisition strategy: 12 months plus - EU is a keeper donor!
  14. ● Gender equality and women’s empowerment (feminist foreign policy) ● Climate change (Sweden is one of the largest donors to the Green Capital Fund (GCF) and Global Environment Facility (GEF); bilateral ODA focuses on marine resources) ● Democratic governance, human rights, rule of law, and freedom of speech (‘Drive for Democracy’ initiative from November 2019) ● Conflict prevention and humanitarian assistance (needs based) 14 Major change at the others Recent strategic shifts: ● 2021 -22 Refugee costs down to 3% of ODA (2015: 25%) ● Humanitarian assistance, focus on conflict-affected areas ● DevAid: Democratic governance & human rights are funding priorities, ● Focus on low-income countries in sub-Saharan Africa (esp. Somalia, Mozambique, Ethiopia) and low-income countries (e.g. Afghanistan and Syrian Arab Republic)
  15. ● New 2030 strategy (9 years!) increase its efficiency as well as strengthen and systematize the development, sharing, and use of research-based knowledge in Norad. ● The new 2030 strategy focuses how to effectively achieve the UN Sustainable Development Goals (SDGs). Norad plans to disburse funding more strategically, and its overall goal is that the budget will function as a strategic tool for eliminating poverty, slow down the nature and climate crises, and combat various forms of inequality. 15 NORAD (Norway) Logo here Recent strategic shifts: ● Portfolion Innovtion focus: creating a donor culture that is conducive to testing out new ideas and expanding on existing good ones. ● Norad's Director, Bård Vegar Solhjell, said that to improve efficiency, Norad would likely want to make fewer, larger agreements. ● Sectors likely to win support - digital public goods — such as digital learning materials, improved access to weather and health information, and cash transfers
  16. ● Strengthening the status and rights of women and girls, with an emphasis on sexual and reproductive health and rights. ● Sustainable economies and decentwork, with an emphasis on innovations and the role of women in the economy and female entrepreneurship. ● Education, peaceful and democratic societies, with an emphasis on equitable quality education, improved tax systems and support for democracy and the rule of law. ● Climate change and natural resources, with an emphasis on strengthening adaptation alongside mitigation of climate change, food security and water, meteorology and disaster risk reduction, forests, energy and safeguarding biodiversity 16 FORMIN (Finland)
  17. ● Migration, BMZ allocated €475 million (2021) set to increase ● Climate change and renewable energy, with a pledge of €1.5 billion to the Green Climate Fund (2020 to 2023); Strategy to become worlds No 1 climate change donor and transformator. ● Agriculture and food security, e.g., through BMZ’s special initiative ‘ONE WORLD - No Hunger’ with €525 million in 2021 ● The German government focus remains on the African continent focused on fostering private investment and good governance and is advocating for a concerted EU-Africa Policy at the EU level. (Marshall Plan for Africa) 17 Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH Recent strategic shifts: • No major impact from elections • However, May 2020 launch of the BMZ 2030 strategy is complete overhaul: a. Peace and societal cohesion b. ONE WORLD - No hunger, c. vocational training/ jobs, d. climate/energy, e. environmental protection and natural resources management;
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  19. ● Foundations alliance (green energy alliance) ● Banks and DFIs as well as VCs ● Corporate purpose & partnership expenditure expected to triple by 2023
  20. Training now free MzN will make all services to non-profit organisations subsidised and free of charge by 2030. Training already is free of charge. Check out our blog and upcoming events on our website: Chasing Impact- a new podcast Subscribe now for episodes in early 2022