🌍 Fundraising News - Week of 15 Sep 2025

1. Multilateral Finance & Climate Funds

• MDB climate finance reached a new high in 2024: Multilateral development banks reported a record US$137 billion in climate finance for 2024, with US$85.1 billion directed to low- and middle-income countries and a 33 percent rise in private financing mobilised through MDB operations. Implication: NGOs should design climate-smart, bankable proposals aligned with MDB priorities to capture this funding. Reuters

• GEF scaling wildlife / biodiversity bonds across Africa: The Global Environment Facility plans to expand wildlife or biodiversity bonds to cover all 54 African countries, committing an initial US$150 million which could leverage up to US$1.5 billion in conservation capital through pay-for-results structures. Implication: New partnership models are available for biodiversity and nature finance, including structured outcome payments and private investor engagement. Reuters+1

• Private sector mobilisation and blended finance remain central: MDBs continue to emphasise mobilising private capital alongside grants and concessional funding; this trend creates opportunities for NGOs to partner with MDBs, DFIs, and impact investors. Recent MDB reporting highlights the importance of measurable outcomes, co-financing and strong safeguards. European Investment Bank

2. African Resource Mobilisation (regional priorities and heads of state commitments)

• Africa Climate Summit outcomes and investment framing: At the Second Africa Climate Summit in Addis Ababa, leaders pushed to transition from climate aid to climate investment and announced continent-level initiatives to mobilise large sums for climate solutions. The summit also showcased ambitious national initiatives such as Ethiopia’s commissioning of the Grand Ethiopian Renaissance Dam and expanded tree-planting commitments. Implication: Proposals should emphasise investment readiness, bankability, private sector engagement and measurable adaptation co-benefits. Reuters+1

• Africa Finance Corporation highlights domestic capital: AFC estimates as much as US$4 trillion of local capital exists across African pension funds, sovereign wealth funds and other institutional pools that can be mobilised for infrastructure. Implication: Organisations should build blended finance structures that tap domestic institutional investors and align with local regulatory reforms. Reuters

• African Development Fund to access capital markets: The African Development Bank’s concessional arm, the African Development Fund, plans to start tapping capital markets from 2027 and aims to raise roughly US$5 billion every three years to supplement donor replenishments. Implication: Expect new co-financing instruments and bondable projects where NGOs can offer technical assistance or pipeline development to attract ADF capital. Reuters

• Domestic revenue innovation and structured instruments: Several African governments are expanding domestic revenue instruments such as sin taxes, digital levies, public-private partnerships and structured debt swaps to cushion aid reductions. This is increasingly framed as fiscal space creation and domestic resource mobilisation for health, education and climate resilience. Recent commentaries and government statements highlight this trend. Financial Times+1

• Treasuries experimenting with ESG and innovative forex solutions: Example: South Africa sought at least US$500 million in foreign currency funding via innovative instruments and explicitly encouraged ESG-linked proposals as an alternative to traditional Eurobond issuance. Implication: Ministries of finance are open to ESG structures and private placements that can be matched with climate or social outcomes. Reuters

3. Global Philanthropy & Foundations

• Global Fund innovative finance record: The Global Fund has deployed multiple blended finance instruments since 2017 and reports US$211 million across 14 blended investments, US$330 million mobilised through 14 Debt2Health conversions, and US$785 million mobilised via RED brand partnerships. Implication: Health and CSO actors should explore debt swaps, blended programs and corporate partnerships to sustain programming. The Global Fund+1

• Philanthropy tightening and localisation push: Global philanthropic convenings in 2025 emphasised shrinking institutional philanthropy budgets, rising geopolitical risks, and a stronger movement toward local philanthropy and capacity strengthening for local civil society. Implication: Funders increasingly expect local co-funding, demonstrable sustainability, and leadership by local organisations. Mo Ibrahim Foundation+1

• Shift the Power and localisation momentum: The Shift the Power narrative and regional intermediaries continue to push for grantmaking that increases direct funding to local organisations, builds local financial management capacity, and supports organisational sustainability rather than short term project cycles. Implication: Proposals must elevate local leadership, budget control and sustainability plans. Mo Ibrahim Foundation

4. Bilateral Donor Updates (high level signals)

• United States and USAID changes: Recent reorganisation of US foreign assistance and shifts in priorities mean emphasis is moving toward blended finance and private capital mobilisation in some programs, while oversight and programme redesign have created uncertainty in traditional grant pipelines. Implication: Organisations should map alternative funders and prepare flexible program designs. The White House+1

• United Kingdom FCDO: The United Kingdom is reallocating and trimming core grant budgets while prioritising humanitarian response and some climate finance. Expect more competition for reduced bilateral ODA envelopes and greater focus on value for money, partnerships, and multilateral channels. Implication: Projects must demonstrate high impact, cost effectiveness and measurable outcomes. Front page - US+1

• Germany (BMZ/GIZ): Germany continues to prioritise green hydrogen, energy transition, and climate adaptation in African partnerships, with significant technical cooperation implemented through GIZ. Implication: Opportunities exist for renewable energy and green hydrogen project partnerships with a technical assistance or capacity component. BMZ+1

• Other bilaterals: Sweden, Norway, Japan, France, Canada, Ireland and Australia remain active with thematic shifts toward gender equality, biodiversity, climate resilience and private sector co-financing. Implication: Align proposals to donor thematic priorities and show private sector leverage where appropriate. (Select donor strategies and announcements tracked across their official sites and reporting.) GOV.UK+1

Key Takeaways and Actionable Recommendations

1. Design for blended finance and investor appeal: Develop bankable project briefs, investment memoranda and measurable outcome frameworks so projects can sit in MDB, DFI and GEF blended instruments. Reuters+1

2. Tap domestic institutional capital: Structure proposals that can attract pension funds, sovereign wealth funds and local banks by offering long term cashflows, risk mitigation, and strong governance. Reuters

3. Leverage biodiversity and outcome bonds: Where biodiversity outcomes are relevant, explore partnerships with GEF, World Bank and conservation finance intermediaries to pilot or scale wildlife / biodiversity bonds. Reuters

4. Local leadership counts: Funders and philanthropies increasingly prefer local ownership and co-funding. Embed local partners, cost-sharing and sustainability plans early in designs. Mo Ibrahim Foundation