Civil society organisations have been urged to consider social entrepreneurship to address funding challenges resulting from the freezing of foreign aid to Uganda by US President Donald Trump through USAID, one of the most significant disruptions to donor support for civil society organisations.
Media reports indicated that more than 60 non-profit organisations were affected, with several closing shop in Uganda. The disruption has left gaps in third-sector work, yet civil society organisations play an important role in development by promoting accountability, bolstering service delivery and strengthening communities.
The call came during a webinar themed "Opportunity Access Gap" held on September 10, 2026, following a report titled "Unseen: Why Capable Local Organisations Remain Invisible and Why Funders, Governments and Investors Struggle to Find the Trusted Local Partners They Need" by New Global Markets Consulting.
The report highlighted the growing funding challenge, with funding and finance, partnerships and networks, and revenue and diversification identified as major constraints to organisational growth.
Keep up with the latest headlines on WhatsApp | LinkedIn
In light of these challenges, NGOs are being encouraged to diversify their sources of income while strengthening their internal systems to attract new donors and investors.
Humphrey Nabimanya, Chief Executive Officer of Reach A Hand Africa, said NGOs should begin looking beyond the traditional model of depending heavily on donor funding.
He said organisations need to understand the different actors financing social impact, noting that funders have different priorities aimed at achieving sustainable development goals.
"An investor looks at the issues they are passionate about, the issues that align with their business, and where they can invest or put their money," he said.
According to Nabimanya, companies are also changing how they support social causes, with some moving from traditional corporate social responsibility towards sustainability programmes.
"They are investing money and looking for local organisations to support," he said.
He said visibility, relationships and networks increasingly influence which organisations are considered for funding.
David Thomson, Chief Executive Officer of All We Can, added, with an example of efforts to channel funding directly to girls' networks and youth rights groups. Because conventional funding systems made this difficult, an Equality Accelerator platform was established and co-created with young activists, giving them decision-making power and access to flexible, unrestricted grants.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The initiative, supported by the Irish government, demonstrated how funding can reach young people when systems are designed around trust rather than bureaucracy.
