Page 56 - AERC Strategic Plan 2 July2020

THE AERC 2020–2025 STRATEGIC PLAN

Financing the Strategy

Background: Strategic Plan 2015–2020

Financial Performance

Income Performance

Despite the challenges in the economic and social environment, AERC funding partners
continued to honour their commitments in support of the AERC 2015–2020 Strategic
Plan. In particular, institutional partners have enhanced their support and previous
funders have renewed their grants. Relentless efforts were made to reach out to African
governments and institutions as a key strategy for sustaining the Consortium. These
efforts culminated in the historic convening of 12 African central banks in Livingstone,
Zambia (February 2015), and signing of a resolution confirming the banks’ membership of
the Consortium in accordance with AERC bylaws. Thus, support to the AERC from African
governments and institutions has been enhanced and sustained.

It is noted, however, that from the beginning of the strategy some traditional AERC
funding partners have been affected by factors such as changes in government policy,
the aftermath of the global financial crisis, and the challenges of the refugee crisis.
This created a resource gap, as the AERC’s income projections had relied on traditional
funders continuing to finance its strategy. Moreover, some traditional funders shifted
their funding support from core to earmarked funding. In fact, most funders now prefer to
fund earmarked programmes for their quick and demonstrable impact.

During the 2015–2020 Strategic Plan, the Consortium was able to mobilize US$58.4
million against a target of US$73.2 million. As shown in Table 1, this represents a 79.7
per cent achievement. However, this represents a 19 per cent and 14 per cent income
decrease respectively over the strategic-plan periods 2010–2015 and 2005–2010. In terms
of resource mix, 74 per cent was received from governments, with 32 per cent contributed
by African governments and institutions. Contributions from foundations accounted for
11 per cent, while international institutions contributed 8 per cent. Other income sources
contributed 7 per cent of the total as shown in Figure 1.

43 |