Saving South Africa’s social sector: What we need to do and why it’s critically urgent

There’s an increasing sense of concern, disconnect, desperation and even hopelessness among the stakeholders that make up South Africa’s humanitarian sector – and with good reason. The sector is facing numerous challenges that not only hamper its current efficiency but also threaten its future sustainability. In a country where a significant part of the population depends on social support, there’s a lot at stake. The time has come to build a national institution, with the infrastructure to formalise, organise, promote, support, grow, strengthen and capacitate the entire humanitarian ecosystem. Most of Africa and several countries and regions across the globe have been reaping the fruits of building robust social ecosystems for years. South Africa needs to catch up urgently, and we’ll need all hands on deck.

SA’s social sector has become a ticking time bomb

From spending a significant amount of time engaging with various stakeholders in the broader humanitarian ecosystem in South Africa, I’ve become acutely aware of concerns regarding serious gaps and shortcomings in the sector. Challenges such as a shortage of funding and ineffective funding models, no promotion or testing of innovative development approaches, and insufficient human resources, skills and organisational capacity are threatening to undermine its future sustainability. The sector is in crisis, and since it contributes more than R100 billion to South Africa’s economy every year and provides more than one million jobs, its success directly impacts and contributes to the growth and development of the country and its people.

Lack of institutional capacity is compromising efficiency

At the core of this crisis, I believe, is that nothing holds South Africa’s humanitarian sector together – there’s no clear mandate. While some institutions focus on certain aspects in the ecosystem – such as the Independent Philanthropy Association of South Africa (IPASA), Inyathelo and the Social Justice Initiative, to name only a few – there is no single body that represents the entire sector, speaks on its behalf, brings together different interest groups to act collectively, or makes public how social issues are being addressed collectively by the sector.

Looking at international trends, there are numerous examples of the positive impact achieved by institutions that mobilise and organise the humanitarian ecosystem in a specific country or region. Philea (Philanthropy Europe Association) is an excellent example. It brings together foundations, philanthropic organisations and networks to help members “get inspired, act together and achieve greater impact by sharing data and knowledge, exchanging best practices, connecting around common themes, engaging in policy work and more”.

The social sectors in North, West and Central Africa have also benefitted greatly from creating infrastructure to mobilise and optimise resources and impact. Examples include:

• The Nigeria Philanthropy Office, (which is a private-led coordinating office located in the Office of the Vice President to drive high level catalytic philanthropic support)
• The Africa Grantmakers’ Affinity Group in Nigeria (which offers grantmakers opportunities to build relationships and access information to help them make strategic funding decisions)
• The East Africa Philanthropy Network (which connects community foundations, corporate and private foundations, and other types of grantmaking and non-grantmaking organisations)
• The African Philanthropy Forum (that promotes homegrown philanthropy and inclusive development on the African Continent)
• The West Africa Civil Society Institute (which reinforces the capacities of national and regional civil society institutions in the context of operational and institutional challenges).

Disturbingly, Southern Africa is falling behind, with the shocking state of South Africa’s social sector being a prime example.

The negative impact of not having an umbrella institution is all too clear. On a high level, a lack of institutional capacity is challenging South Africans’ human rights, threatening our democracy and quieting the voice of civil society. On a more granular level, the mobilisation and effectiveness of the sector is seriously compromised:

• We don’t have any collective or persuasive power to engage with government.
• We don’t know the size and scope of the sector or the exact number and configuration of stakeholders.
• We miss out on opportunities to collaborate and coordinate. Development either happens in silos or is replicated ad nauseum.
• We are unable to raise funds collectively from development finance institutions or international grantmakers and philanthropists.
• We cannot move with the times, as evidence and data about current practices are non-existent.

With so much at stake, this begs the question: has the time come to create an institution for the humanitarian sector in South Africa? Inspired by the work done in other African countries and abroad, I have made it my mission over the last year to answer this question. And based on my engagement with stakeholders across the value chain, the answer is a resounding yes.

Creating a national, representative institution: an idea whose time has come

With the vision to build an institution to formalise and organise the humanitarian ecosystem in South Africa, I developed a concept note in 2023, articulating the objectives of such an institution to:

1. Harness the sector’s diverse and multidimensional potential.
2. Unite, inspire, support, connect and represent the sector.
3. Coordinate and facilitate an inclusive environment for collaboration and networking.
4. Increase synergies, scale up innovation and create a unified voice to impact and influence policy.
5. Build bridges between private, public and civil society, creating alliances for positive change.

To ensure an inclusive co-creation and design process, I interviewed over 150 stakeholders about the concept’s feasibility. The overall support was overwhelming. Most stakeholders agreed that a national institution is indeed necessary for the sector to address the current challenges and be future-ready. They also agreed that not taking action now holds great risks, including reduced impact as a consequence of a silo approach, wastage, duplication and insular thinking and failure to bring about large-scale sustainable change due to outdated financing models. The phrase “it’s an idea whose time has come” surfaced repeatedly throughout the engagement sessions. ?

As is often the case with unchartered territory, some stakeholders were apprehensive. Examples of concerns – which are valid and would have to be considered in an institutionalisation process – include:

• the potential impact on existing networks and collectives
• the risk of creating a power imbalance among stakeholders
• the overall effectiveness in meeting the needs of diverse stakeholders equally

Nevertheless, an appetite for change was the dominant sentiment.

Getting practical: what institutionalisation might look like

Throughout the discussions, thoughts and suggestions from the participants and stakeholders, key themes emerged. These themes are what will ultimately give substance and direction to a process of institutionalisation. I have organised them according to the overarching theme of “an idea whose time has come” in the table below.

Moving forward: from consensus to execution

To establish a national umbrella organisation amidst the challenges the sector is facing will require prioritisation, as per theme 8 above. While stakeholders also indicated interest in new activities, they emphasised the following as priorities:

1. Provide supporting infrastructure and services to mobilise, organise, strengthen and coordinate the sector’s activities, resources and work.?
2. Galvanise investment and stakeholders to bring about greater change and impact and to create a community of stakeholders that create, lead, own and drive the sector’s future.
3. Illustrate best practice, particularly in encouraging indigenous humanitarian practices.
4. Design and prepare the ecosystem to be more sustainable by, for example, building large-scale, collaborative development programmes and mobilising all roleplayers, including the public.

Are you willing to do what it takes?

The time has come to create a backbone organisation that will build the infrastructure required to unify and sustain South Africa’s humanitarian ecosystem. The groundwork has been done and the concept has been tested. One person or organisation can however not spearhead such an initiative. With a complex network of stakeholders involved, this is a mammoth task that will require large-scale collaboration and coordination.

That’s why I am looking for support to take the next steps. I’m calling on all sectors and stakeholders across the ecosystem to join me in getting our social sector on par with the rest of the continent.

If you want to support this initiative, please get reach out, connect and get in touch. The next step would be to co-design and build such a collective and representative institution.

The concept note as well as stakeholder engagement report is available on request.

#strongertogether #successtogether

Reana Rossouw is the founder and owner of Next Generation: Social Investment and Development a management consultancy that specialises in social innovation, social investment and sustainable development, as well as impact management and measurement. She also developed Africa's first impact assessment technology platform and methodology - the Investment Impact Index: Impact Management and Measurement that measures the impact and return of social investment and development strategies, portfolios and programmes.