The Impact of USAID Funding Withdrawal on Programme Delivery and Advocacy Efforts of Queer Organisations in South Africa: A Case Study from Mthatha

Abstract

Despite South Africa’s progressive legal framework protecting queer rights, queer organisations continue to face significant challenges in sustaining service delivery and advocacy efforts due to heavy reliance on external donor funding. This study examines the impact of the withdrawal of United States Agency for International Development (USAID) funding on the programmatic scope and advocacy capacity of queer organisations in South Africa, with a specific focus on a queer advocacy organisation in Mthatha, Eastern Cape. Guided by an interpretivist paradigm and a phenomenological research design, the study draws on in-depth semi-structured interviews with twelve participants—including organisational managers, social workers, and service users—and thematic content analysis. The research explores how prior USAID support had expanded outreach, service delivery, and advocacy efforts, while simultaneously fostering dependency. The subsequent withdrawal of funding led to marked reductions in outreach and advocacy activities, constraints on service delivery (including health and psychosocial support), staff and organisational instability, and the interruption of advocacy initiatives. These disruptions revealed structural vulnerabilities stemming from heavy reliance on single-source external funding, resulting in diminished community presence, eroded trust, and weakened capacity to sustain essential services and rights-based advocacy. The findings highlight the dual role of donor funding in enabling progress while exposing organisations to instability upon withdrawal, underscoring broader implications for donor dependency, organisational autonomy, and inclusive governance in resource-constrained contexts. Recommendations emphasise community-centred strategies, internal capacity strengthening, funding diversification, and government support to enhance long-term sustainability. This study contributes to existing knowledge by providing empirical insights into the governance implications of donor dependency and withdrawal in queer civil society organisations, revealing the need for enhanced organisational autonomy and sustainable funding models in resource-constrained settings.