Since its beginning in 2016, the Grand Bargain has promoted increased funding to local and national actors (LNA) as one of its principal objectives. More specifically, signatories have committed to provide 25 per cent of humanitarian funding to LNAs as directly as possible to improve humanitarian response for affected people and reduce transactional costs. In 2023, localization was reaffirmed as a Grand Bargain priority for better global humanitarian outcomes. To further enhance transparency and accountability, the Grand Bargain signatories, through the caucus on funding for localization in 2023, agreed on a collective monitoring and accountability framework. This framework outlines how to measure and report funding to local and national actors via public platforms like the Financial Tracking Service(FTS), vis-a-vis ensuring data compatibility and promoting increased accountability to the 25 per cent funding target.
Collectively meeting the 25 per cent target has proven difficult. One of the challenges in applying the framework and measuring progress was the need for consistent definitions of LNAs. In 2023-2024, OCHA, in collaboration with the Grand Bargain Localization Working Group, undertook a reclassification of humanitarian organizations and developed guidance in line with the Inter-Agency Standing Committee – Grand Bargain localization marker definitions. This work involved reclassifying over 13,800 organizations registered in FTS, OCHA planning tools, and pooled funds’ databases, aligning tools and services to enhance tracking of funding flows and promote more inclusive and accountable humanitarian action.
The chart below illustrates that the amount of funding recorded for LNAs in FTS increased significantly between 2021 and 2022 and again between 2022 and 2023. This was, in large part, due to improved reporting and the use of more consistent tracking methods. In 2024, however, the amount decreased. The share of funding to local and national actors remains low, reaching only seven per cent of all recorded funding to the GHO at its peak in 2023.
Funding for Local and National Actors
Pooled Funds’ contributions to localization efforts
Given the current constrained funding environment and a renewed focus on efficiencies, funding to national actors is more important than ever. In 2024, the localization efforts of the Country Based Pooled Funds / Regional Humanitarian Pooled Funds (CBPF/RHPF) reached record levels as the Funds allocated funding directly to 336 local and national organizations, representing 48 per cent of all funding recipients – the largest share ever. The recipient organizations directly received $329 million, or 35 per cent of the total amount allocated by the Funds in 2024, breaking the 2023 record of 31 per cent and far exceeding the 25 per cent global benchmark set by the Grand Bargain. Including indirect funding through sub-grants, total funding to local and national actors reached an impressive $426 million or 46 per cent of the total amount allocated, exceeding the former record by seven per cent.
The CBPFs/RHPFs have not only increased the share of funding reaching local and national partners, but also tailored funding to meet their specific needs, thus promoting equitable partnerships. This included acknowledging that costs related to staffing, capacity development and security are eligible for coverage in project budgets. The Funds also further strengthened the participation of LNAs in Fund governance processes to ensure that local and national perspectives inform CBPF/ RHPF priorities and policies. Finally, the CBPFs/RHPFs prioritized developing the institutional and technical capacities of LNAs, including through thematic guidance notes and online sessions for NGOs to share experiences via the CBPF-NGO Dialogue Platform.
Although the Central Emergency Response Fund (CERF) can only directly fund UN agencies – in line with its General Assembly mandate – in 2024 it again played an important role in enabling humanitarian action by local and national actors. In the two 2024 Underfunded Emergencies (UFE) rounds, the Emergency Relief Coordinator (ERC) encouraged UN country teams to consult with national and local partners on the design and prioritization of CERF funding, and to strengthen their engagement in the implementation of grants. The RC/HCs were also invited to set ambitious targets – based on the local context – for the amount of CERF funding to be sub-granted to national and local implementing partners. As a result, about a quarter of the 2024 CERF UFE allocations was sub-granted to national and local organizations.
Next article
