University fundraisers face a challenge in securing and maintaining a steady flow of philanthropy to support our institutions and student life.
Unlike our counterparts in North America or Europe, African universities lack comparable internal fundraising resources and face limited philanthropic sources in local markets.
The first challenge for us in trying to meet this expectation is explaining that bringing in a major gift is a notoriously sensitive matter and, in truth, relatively rare. After all, global high-net-worth (HNW) wealth is highly concentrated in the United States, China and Europe.
According to the Credit Suisse-UBS Global Wealth Report 2023, 38.2% of the world’s dollar millionaires are in the United States; by contrast only 4% are in all of Africa. The pursuit of the major gift may be commonplace in the United States; it’s a much more challenging pathway to fundraising success in Africa.
However, there are promising signs that African universities should be able to increase funding through global philanthropy, thereby providing fresh impetus to the continent’s creaking higher education sector.
The rise of African billionaires
Firstly, Africa’s economic rise is expected to lead to a surge in the number of African HNW individuals.
Credit Suisse predicted a 113% increase in African millionaires by 2027, with Africa anticipated to see the highest percentage rise in HNW individuals globally.
This assessment appears to be evidenced in the Forbes Africa Billionaire’s list 2024 published in January, which reported that the number of billionaires on the continent grew by 10% between 2022 and 2024. This is in contrast to the 6% decline in the number of billionaires globally.
Moreover, the cultural shift towards philanthropy among Africa’s wealthy elite is noteworthy. That culture of African giving and leadership in philanthropy is also changing.
Africa’s richest man, Aliko Dangote, is a major donor to universities both in his home country of Nigeria and across the continent. He is not alone. Johann Rupert, Nicky Oppenheimer, the Sawiris brothers and Strive Masiyiwa are all reported to have funded African universities. Economic circumstances are important in fostering a philanthropic culture; so too is philanthropic leadership.
Education philanthropy and internationalisation
Secondly, philanthropy among HNW individuals is increasingly international and cross-border, with education being a favoured cause. The 2022 Wealth-X report of ultra HNW philanthropy states that education is, “by some distance, the most popular philanthropic cause”. It also reports that the longstanding alma mater tradition in the US “is now extending to more universities around the world as schooling becomes increasingly globalised”.
The rise of institutions like the Silicon Valley Community Foundation (SVCF) facilitating global philanthropy for California’s tech sector suggests that African universities could benefit from cross-border giving by HNW individuals. For example, SVCF has seen a significant increase in funding to non-US universities in recent years, indicating a growing interest in supporting higher education globally.
Diaspora philanthropy
Third, the rise in diaspora philanthropy is also set to increase HNW giving. A Carnegie Corporation-funded report into diaspora giving to Africa’s higher education concluded that HNW wealth is a key opportunity. Universities are engaging with the diaspora – even if there is no prior relationship – often through a range of networks such as professional, religious and academic ones.
The opportunity is most apparent in the US, home to a well-established philanthropic culture and where the black immigrant population has increased fivefold since 1980, with much of this migration from Sub-Saharan Africa.
The World Bank reports that Sub-Saharan African immigrants living in the US, Europe and elsewhere sent back to Africa US$54 billion in remittances in 2023 – an increase of 27% since 2020. Overall, the volume of diaspora giving is on the rise and, it is reasonable to assume, HNW giving is increasing in step.
Social impact
Fourthly, there is a shift in philanthropic behaviour among ‘Next-Gen’ philanthropists, who are more willing to take risks and prioritise social impact over preserving assets for future generations. This trend, coupled with Africa’s youthful demographics, suggests that African universities may be well placed to appeal to younger HNW individuals seeking to make a meaningful societal impact.
With Africa’s population projected to nearly double by 2050, the continent’s youth will increasingly shape its economic and societal landscape. This ‘youthquake’ presents an opportunity for African universities to attract major gifts from Next-Gen philanthropists – on the continent and beyond – interested in supporting education and social development in Africa.
Technology and communications
Lastly, advancements in technology and communications are making philanthropy more accessible and transparent. This may reassure HNW donors about the security and accountability of their contributions. For example, blockchain technology offers secure and transparent transactions, addressing concerns about the handling of funds in cross-border philanthropy.
On the beneficiary side, artificial intelligence is enabling identification of, and approaches for funding to, HNW individuals and their foundations. This is transformative for poorly resourced advancement offices.
There are good grounds for optimism in attracting major gifts to Africa’s universities. Of course, it requires resources, leadership and energy, but significant change is happening.
Low-profile universities in lesser-known locations will be better placed than ever before to make the case for the long-term societal impact of giving to their institutions. And the audiences they need to impress – the world’s HNW philanthropists – are likely to be more sympathetic than ever to their cause.
Sarah Archer is executive director of the Development and Alumni Department at the University of Cape Town (UCT), South Africa. Andrew Wigley is UCT’s international development and partnerships director.
