Alignment to donors? VS. Portfolio management!

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;

18. 18

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:
www.mzninternational.com
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