Go to social enterprise or perish, Govt warns cash-strapped NGOs
The Ugandan government is urging NGOs to transition into social enterprises to generate their own income as international funding declines. Officials noted that very few organizations have adopted this model despite legal changes made in 2016.
Why it matters
This highlights the financial instability of the NGO sector in developing nations and the shift toward self-reliance as foreign aid becomes less predictable.
The government has advised Non-Governmental Organizations (NGOs) operating in the country to urgently explore internal revenue-generation avenues to maintain operations, as international funding continues to dry up.
Speaking at the NGO Risk, Compliance, and Resilience Conference 2026 in Kampala on October 23, Dr. Stephen Okello, the Executive Director of the National Bureau for NGOs under the Ministry of Internal Affairs, expressed concern over the sector's heavy reliance on foreign donors.
The conference, themed "Transforming Regulatory and Operational Challenges into Opportunities for Growth and Greater Impact, " was organized by Onyango & Company Advocates in partnership with the Ministry of Internal Affairs, the NGO Bureau, the Civic Advisory Hub, and the Personal Data Protection Office. Dr. Okello noted that while NGOs are inherently non-profit entities, the government amended the law nearly a decade ago to allow civil society organizations to generate their own income.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in