Our approach to funding

Over the past ten years, DGMT has developed an unusual and distinct identity as a public innovator through strategic investment, which we hope is an exemplar for foundations in the South.

Our experience is that funders can “punch above their weight” in a developing country such as South Africa – which can have massively negative consequences or which can present a real opportunity to achieve a greater impact over a shorter period of time than in countries where political systems are more established. We also think that typical grant-making tends to fill gaps temporarily, but rarely leads to demonstrable change, and that there is a clear need for local activist foundations to build evidence, public demand and “political” alliances at the same time. We can do things that foreign foundations can’t – such as siding with government in court or even litigating against government when it fails to fulfil its constitutional obligations.

The rootedness of a local foundation in a country of the South enables sustained, context-sensitive co-investing by foundations based in other countries – and, we would argue, greatly enhances the expected benefit of such co-investment. For this reason, DGMT actively seeks co-investment in trying to achieve its strategic objectives.

Over the next five years, we are likely to see both a significant realignment of party politics, but more significantly, a realignment of the state. The space for public-private partnerships (both financial and programmatic) in pursuit of national goals is likely to expand, as narrow models of political patronage hopefully give way to a professional civil service and openness to effective collaboration.

A foundation like DGMT – a long-term public innovator and investor – could contribute significantly to the rehabilitation of this nation if it retains its identity as a dynamic, learning and caring organisation. This is our commitment as we embark on our next five-year strategy, together with other investors, implementing partners, government, the private sector, trade unions and other civil society partners.