African Philanthropy
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FOREWORD The African Grant Makers Network (AGN) and the Southern Africa Trust are excited to publish this report which covers not just the legislative environment for philanthropy in Africa but begins in many ways to paint a complete picture of the space that philanthropy occupies. There are many birds in the sky as Tade Aina-a renowned scholar and philanthropy expert once remarked in an African Grant Makers Affinity Group (AGAG) Retreat in 2013. But how these birds are regulated or regulate themselves in the sky while flying still remains a very fuzzy and unclear terrain. How they are also affected by existing regulations, policies or systems also remains undocumented and at worst unknown. This report - looking at seven countries (Angola, Egypt, Ghana, Kenya, Nigeria, Senegal and South Africa) - gives a detailed picture. And as expected, the countries studied are different in terms of culture, history, politics, legal regimes, economic development, identity formation and traditions of philanthropy among others. Yet they all have a culture of giving and all possess resources that can be harnessed for sustainable development, particularly in the era of the post 2015 Sustainable Development Goals. The report manages to profile these counties and contextualise philanthropy both in its practice and theorisation. Ultimately it is in how these countries conceptualise philanthropy that determines how they regulate it. The report sheds light on what regulatory regimes exist in these countries. It goes on to suggest reforms where there are gaps or outdated approaches. But perhaps more revealing is that there is no country that has a single legislation on philanthropy, rather philanthropy is regulated by many statutes - financial, monetary, taxation and administrative among others. Philanthropy cuts across the regulatory and policy regimes of these countries. This means that governments play a particularly active role in how philanthropy operates in these countries. This intrinsic linkage between philanthropy and governments has not till now been debated or brought out as an area of scrutiny. The report kick starts this debate and the interrogation of the negotiation of the space between governments and philanthropic bodies. For AGN and the Trust, this is an important area of focus going forward. There is no doubt that philanthropy will be expected to bail our ever failing governments - now and again, but to do so effectively, there is need to understand very well these intricate relationships which on the one had can be very catalytic but on the other can be very limiting as we see in many countries where the space for civil society and philanthropy is under stress. Increasingly also is the space between philanthropy and the international system. This report and others conducted by the Trust begin to conceptualise the link between philanthropy and international instruments, for example around the role philanthropy plays in either promoting or curbing illicit financial flows. This is an area that is increasingly getting attention not just from policy makers but also from regulators. This has a potential to either hamper philanthropic transactions or help boost local productive economies. Related to this is the increased question of remittances and how they are regulated. In the Zero Draft of the outcome document for the UN Summit to adopt the Post 2015 Development Agenda, there is an attempt to reform financial instruments and policies to facilitate movement of remittances. But given the current interchanges between conceptions of remittances and philanthropy, there is likelihood that increased regulation targeting remittances will affect philanthropic flows. Only Kenya and Ghana in the report seem to have regulated the remittances under their law. Other countries have not dedicated specific attention or legislation to remittances. The relation between civil society, the market and the state is discussed in the report. This is precisely because different ideological orientations of governments determine what space they give and how much they close for other actors. It is clear in the report that in creating an enabling environment for philanthropy, is far more than offering the civil libertarian rights to understanding the new and broader national strategic considerations such as fighting terrorism, money laundering, broadly captured as security concerns of the state. We live in an era where the promotion of human rights by groups is competing with the agenda of protecting human lives by the state. This makes it easy for the human rights agenda to be dominated and sacrificed for the protection of human lives orientation. Countries such as Kenya, Egypt and Nigeria would therefore raise the security considerations in their dealings with civil society and philanthropy. Understanding these developments helps philanthropy position itself in these countries. The report is therefore useful in that it does carve out these peculiarities. In countries with a strong leftist orientation such as South Africa, philanthropy can easily negotiate its space in line with current practices within the trade union movement for example and the vibrancy that normally characterises civil society. Overall however it is clear that all countries approach philanthropy and its friends from a supervisory, surveillance and compliance orientation, with punishment meted out in cases of non-compliance. The report however recommends a different approach, one that priorities innovation, transparency, accountability and mutual trust. Finally philanthropy exists in a governance context in all these countries. How these countries are governed has a ripple effect on philanthropy. This too is an area of interest for AGN and its members. This report would not have been possible without the support received from AGN and the Trust’s partners. In particular, we wish to thank the Bill and Melinda Gates Foundation for supporting the research and publication of this report. We further thank Brian Kagoro and his team for this sterling work. Halima Mohammed reviewed the draft report and we thank her for her expertise and time. Jozet Muller who managed this project deserves special mention. Among many of her tasks, she made sure this report and others saw the light of the day. Finally, we hope this report will start the needed conversations but also contribute immensely to the ever increasing body of literature on African philanthropy. Bhekinkosi Moyo Theo Sowa Executive Director Southern Africa Trust Executive Director, African Women Development Fund AGN Board Secretary AGN Chair Person African Grantmakers Network Page 3 “ Africa’s people share deep- rooted values of social solidarity, human dignity and inter-personal connectedness which correspond to western notions of philanthropy- the desire to promote the wellbeing of others or, put simply, ‘to love people’.” AGN Report, April 2013 African Grantmakers Network Page 4 Table of Contents FOREWORD ........................................................................................................................................................ 2 PREFACE ............................................................................................................................................................. 7 ACRONYNMS ...................................................................................................................................................... 9 GLOSSARY OF TERMS ....................................................................................................................................... 10 ACKNOWLEDGEMENTS .................................................................................................................................... 11 1. EXECUTIVE SUMMARY ............................................................................................................................ 12 Study Objective and Scope .......................................................................................................................... 12 Policy Issues and Strategic Options ............................................................................................................. 13 Study methodology ..................................................................................................................................... 14 Key Findings ................................................................................................................................................. 15 Key Lessons and Recommendations ............................................................................................................ 17 2. INTRODUCTION ....................................................................................................................................... 20 3. BACKGROUND: GLOBAL CONTEXT OF PHILANTHROPY ........................................................................... 23 A Brief History of Philanthropy .................................................................................................................... 23 Corporate Philanthropy in Africa ................................................................................................................. 24 Global and Regional Legislative Frameworks for Philanthropy in Africa ...................................................... 32 4. CONCEPTUAL ISSUES: DEFINING AFRICAN PHILANTHROPY .................................................................... 36 5. THE CONTEXT OF PHILANTHROPY IN AFRICA