The Impact of USAID’s Funding Suspension on Uganda’s Civil Society

Published By UNNGOF |  February 14, 2025

The recent decision by the United States Agency for International Development (USAID) to pause certain funding streams to Uganda sent shockwaves through the country’s civil society. As one of the largest bilateral donors to Uganda, USAID has been instrumental in supporting governance, human rights, education, and health programs. From strengthening electoral processes to improving access to healthcare and education, the agency’s funding has played a critical role in shaping the country’s progress. Over the years, thousands of Ugandans have benefited from initiatives backed by USAID, making the recent funding suspension a significant concern.This funding suspension raises urgent questions about the sustainability of Uganda’s civil society organizations (CSOs) and their ability to continue delivering essential services to the population.

Immediate Implications for CSOs

The funding pause is already being felt by many CSOs that rely on USAID grants to sustain their work. Some of the immediate effects include:

  • Program Disruptions– Organizations working in governance, human rights, and social accountability are facing uncertainties in program implementation. Many of these programs depend heavily on external funding, and without it, their ability to reach communities will be severely hindered.
  • Job Losses-The withdrawal of financial support will result in staff layoffs across multiple organizations. This not only affects the employees but also the beneficiaries who rely on these services.
  • Reduced Civic Engagement-Many CSOs play a key role in educating citizens about their rights and advocating for democratic governance. The loss of funding means fewer civic education initiatives, weakening citizen participation in governance processes.

A Shrinking Funding Landscape

USAID’s funding suspension is not an isolated event. Uganda’s CSOs have already been struggling due to the closure of the Democratic Governance Facility (DGF) and a general decline in international funding for governance-related programs. European donors have also scaled back their financial commitments, leaving many organizations in a precarious position.

The Need for Local Resource Mobilization

Given the shrinking donor support, Uganda’s CSOs must explore alternative funding mechanisms to remain sustainable. Some of the possible strategies include:

  • Encouraging Ugandan businesses, high-net-worth individuals, and the general public to contribute to civil society initiatives.
  • Organizations can explore revenue-generating activities that align with their mission to reduce dependence on external funding.
  • Engaging with private sector actors and forming alliances that provide financial and technical support.
  • Advocating for domestic funding mechanisms that support the work of civil society in Uganda.

The Future of Civil Society in Uganda

The funding suspension presents a significant challenge, but it also provides an opportunity for CSOs to rethink their financial models and resilience strategies. While international donor support has been crucial, the current situation underscores the need for local ownership and sustainable financing.

Uganda’s civil society has long been a pillar of advocacy, service delivery, and democratic engagement. To ensure its survival, stakeholders must come together to explore innovative solutions, mobilize domestic resources, and advocate for an enabling environment that allows CSOs to thrive independently.

As the situation unfolds, CSOs must remain agile, adaptive, and proactive in securing alternative funding while continuing to serve Ugandans in the best way possible.