Fueling Transformation: The Impact of Funding African-led Innovation

Page 1


fueling transformation

The Impact of Funding

African-led Innovation

On the Cover: CIYOTA

Photo Credits: Petros Teka
MsichanaInitiative

africancollaborative’smodelis simplebutrevolutionary:

weprovideunrestricted,multi-yearfunding toAfrican-ledorganizations,coupledwith tailoredsupportthatamplifiestheir impact.everygrantwemakeisabeton Africanexpertise,andourpartnersdeliver.

thebigpicture

Since launching in 2020, African Collaborative has tested a bold hypothesis: that flexible, trust-based funding to Africanled organizations would unlock greater impact and shift deeply entrenched power dynamics in philanthropy.

We have funded 35 organizations across 13 countries, with $8.4 million committed in unrestricted, multi-year grants. The results speak for themselves. Our partners have achieved meaningful systems transformation and impacted 15.4 million lives over the past four years by improving maternal and child health outcomes, improving young people’s access to education, and increasing income for youth farmers amongst many other impactful solutions across multiple sectors.

CURRENTPORTFOLIO PARTNERS 35

PORTFOLIOPARTNERSTHAT AREWOMEN-LED 51%

$8.4M COMMITTEDACROSS 13COUNTRIESTODATE

15.4M

PEOPLEIMPACTEDBYOUR PARTNERS’SOLUTIONS

amodelforgrowth: cohort1'sjourney

African Collaborative launched our first cohort of six portfolio partners in January 2021. In four years, and with African Collaborative's support, BarefootLaw, Dandelion Africa, Rays of Hope, SaCoDé, Shule Direct, and Wezesha Impact grew their programs, developed innovative new solutions, each growing their operating budgets by an average of 170% and revenue by an average 133%. During this same time period, they grew their impact reach by an average of 936%, growing their collective impact to more than 3.3 million individuals across Kenya, Malawi, Burundi, Tanzania, and Uganda.

thepatternrepeats: cohort2'sacceleratingtrajectory

The transformative journey we witnessed with Cohort 1 is not an anomaly, it's a repeating pattern now emerging across subsequent cohorts. Our second cohort of partners, who joined our portfolio in December 2021, each grew their budgets by an average of 170% and revenues by an average of 141% during our first three years of partnership.

Their impact growth has been even more remarkable with their growth curve surpassing Cohort 1. Cohort 2 grew their impact reach by an average of 1,313% over the course of our partnership. This acceleration suggests our model is not only replicable but actually improving as we evolve and our ecosystem matures.

cohort1totalreach cohort2totalreach

firstyearofpartnership firstyearofpartnership

1,500,000

0 500,000 1,000,000

2,000,000 2,500,000 3,000,000 3,500,000 YEAR

connectingfundersto extraordinaryorganizations

Clean Start Africa

AfricanCollaborative'ssupporthasbeena game-changerforus,butwhat'struly remarkableistherippleeffectit'shad.

Byjourneyingwithusandservingasatrusted reference,they'vehelpedotherfundersgain confidenceinourmodel,pavingthewayfor additionalsupportandamplifyingourimpact.

$9.5M

ADDITIONAL LEVERAGEDFUNDING

While our partners drove impact, we utilized our networks and platform to promote their work and crowd-in $9.5 million in new external funding to support and sustain their growth. For every $1 we have invested in our partners, we have leveraged an additional $1.12 in new funding from other funders a $2.12 return on each dollar we invest.

$1INVESTED

Unrestricted, multi-year support AFRICAN-LED PARTNER ORGANIZATION

GainsRecognition AttractsVisibility

OTHERFUNDERS TAKENOTICE

$1 sparks wider support for partner organization $2.12RETURN

We have leveraged an additional $1.12 in new funding from other funders

CIYOTA

afunder’sperspective

ACADES

Thispartnershipexemplifiesthepowerof collaborativefundsasessentialbridges betweeninternationalfundersandAfrican-led organizations—reshapingnotonlytheflowof resourcesbutalsoourcollective understandingofwhattrulydefineseffective, locallygroundeddevelopment.

africa'smostbrilliantsocialimpact leadersarealreadytransformingtheir communitieswithinnovativesolutionsthat drivelastingchangeandprovelocally-led developmentworks.

theseleadersdon'tneedimported solutions,theyneedinvestmentintheir provenmodelsandthepowertoleadtheir owndevelopment.

african-ledorganizationsarerootedIncommunity

African-led organizations maintain accountability where it matters most, ensuring that power flows from those served rather than those who fund. They operate through existing social networks, speaking local languages and understanding unspoken cultural norms that determine whether communities embrace or reject development initiatives.

forafrican-ledorganizations,proximitybegetsinnovation

African-led organizations have a proximity advantage they see problems earlier, test solutions faster, and innovate more cost-effectively. Resource constraints become catalysts for creativity, and with flexible funding, our partners have pioneered approaches to scale and systemic transformation that reshape entire sectors, from education and healthcare to agriculture and technology.

african-ledorganizationschallengetraditionalphilanthropy

The rise of African-led development fundamentally challenges decades of aid orthodoxy and its disappointing results. Our partners create systemslevel change with annual budgets under $1 million, matching the quality of international NGOs that operate with far larger budgets—and the power dynamics of development are shifting as African organizations prove their superiority in delivering results.

Community Development Organization

Chipembere

African-LedOrganizations AccelerateOrganizational Efficiency

When we began tracking our Cohort 1 & 2 partners' impactto-revenue efficiency from their baseline year (Year 0) through their partnership journey, a compelling pattern emerged. At baseline, before joining our portfolio, partners generated 0.126 individuals impacted for every dollar raised. This efficiency improved to 0.150 in their first full year of partnership. Partners experienced a strategic dip that reflected crucial operational and infrastructural investments in Year 2. The payoff came dramatically in Year 3, when efficiency surged to 0.200, an 80% increase from the previous year and a 59% improvement from baseline. Our partners have proven that they are investment-ready by turning unrestricted grant dollars into accelerated impact and more lives changed.

Africancollaborativehasemergedasan unwaveringvoiceintheglobalmovementto shiftpowerandresourcestoAfrican-led organizations.

throughstrategicengagements, publications,andpartnerships,we'vemoved fromthemarginstothecenterofcritical conversationsaboutthefutureof developmentandphilanthropy.

2021:BUILDINGAFOUNDATION

Exploring equity-centered and trust-based principles to better serve underfunded organizations.

INNOVATIONS IN INTERNATIONAL PHILANTHROPY SYMPOSIUM

Learning to Get Proximal, Build Trust, and Develop Sustainable Relationships

CNBC AFRICA

How to Address the Funding Inequity to African-led Organizations

Building new equity-driven networks and redefining what sustainable community-led impact looks like.

INTERNATIONAL DEVELOPMENT

INNOVATION ALLIANCE

Innovating with an Equity Lens

AFRICAN PHILANTHROPY FORUM PODCAST

Understanding & Addressing the Imbalance in Funding African CSOs

2023:BUILDINGSTRA

Unearthing practical sol funding proximate Afric organizations.

SKOLL WORLD FORUM

Chain Reaction: Localizing Value Impact

CATALYST 2030'S CATALYSING Journeys on Intentionally Shifti

PHILANTHROPY TOGETHER’S SUMMIT OF COLLABORATIVE F Trends Emerging in Africa's Coll Landscape

Highlighting collaboratives as transformative vehicles for scaling partnerships and reimagining philanthropy in Africa.

WE GIVE SUMMIT

Collaborative Approaches to Scale Partnerships

AFRICAN PHILANTHROPY FORUM

Philanthropic Collaboratives as a Pathway to Transformation

co-creatingnewstandards: theIDIAequityframework

In 2023, we served as the Equity and Innovation Lead Learning Partner for the International Development Innovation Alliance, a platform of 14 of the world’s largest development innovation funders.

As co-authors of the IDIA Equity Principles & Metrics Framework, we’ve contributed to a sector-wide shift toward direct funding, power-sharing, and accountability rooted in community-defined outcomes.

we’veseentheframeworkusedtocontributeto strategydevelopment,withonememberusingit tocatalysestaffinputontheirstrategic refresh.we’vehadanothermember’semerging technologyprogramdrawonthemetricsto strengthenequityandinclusionintheir implementationandpartnerrelationships.

thepathforward

Four years of deep partnership with African leaders has crystallized several fundamental truths:

The funding desert is vast and systemic. This is not a pipeline problem; it's a power problem.

Partners need time to grow into their full potential. Transformation doesn't follow donor timelines; it unfolds according to community rhythms and relationship building.

Trust and flexibility work. When we remove the constraints of restricted funding and burdensome reporting, partners flourish.

Power can be shifted, but it must be intentionally designed into every interaction. Efforts to create space for African expertise to lead sector conversations require conscious choices to step back and listen more.

Collaboratives are leading the movement globally. With entry points for every type of funder, they make it easier than ever to find and fund exceptional African organizations.

Impact is self-defined. When partners define their own success, it reveals stronger ownership, clearer strategy, and more authentic accountability to communities—metrics that are invisible in traditional frameworks. THEEVIDENCEISCLEAR.THEMODELISPROVEN.

THELEADERSAREREADY.JOINTHEMOVEMENT.

READTHE FULLREPORT FORTHE DATA AND STORIES BEHINDTHE IMPACT

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.