An Update from Action For Humanity’s Nihad Sarmini

From 30 June to 3 July 2025, I had the opportunity to represent Action For Humanity at the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain. Convened by the United Nations Economic and Social Council (ECOSOC) in partnership with the Government of Spain, this flagship event brought together more than 2,000 delegates from heads of state to grassroots civil society leaders to take stock of global development financing and chart new paths towards meeting the Sustainable Development Goals (SDGs) by 2030.

The timing couldn’t have been more critical. With widening gaps in development funding, persistent fragility across multiple regions, and the escalating impact of climate change, the call to rethink and restructure the global financial system felt both urgent and resonant. For organisations like ours, operating at the intersection of humanitarian response and longer-term recovery in conflict-affected settings, FfD4 offered invaluable opportunities:

• To engage in forward-thinking dialogue

• To reflect on where we fit within the broader financing ecosystem

• And to identify mechanisms that can better serve the communities we work with.

Learning at the Margins: Key Themes from FfD4

The conference focused on the structural reform of development finance, emphasising equity, inclusivity, and alignment with national priorities. For Action For Humanity, the most relevant sessions pointed towards new tools and financing models that enable NGOs to deliver long-term impact in fragile settings. Several strong themes emerged with direct implications for our programming and fundraising strategies.

1. From Fragmentation to Pooled and Blended Finance

Traditional, project-based aid models — often siloed and short-term — are no longer sufficient to meet today’s challenges. Several sessions emphasised pooled funding mechanisms as a way to streamline donor support, enhance local ownership, and reduce duplication. Locally governed and intermediary-managed pooled funds were positioned as particularly effective in fragile settings.

Yet a consistent tension remained: while NGOs were acknowledged as frontline actors, few sessions addressed the operational barriers civil society faces in accessing these instruments. For these financing models to succeed, they must move beyond consultation and embed civil society as a co-creator and co-investor in solution design, especially in fragile settings where state capacity is limited.

2. Philanthropy as a Risk-Taker and Systems Shifter

One of the clearest messages from FfD4 was that philanthropic capital has a catalytic role to play in driving development. Speakers throughout the event made the case that philanthropy should not be seen as a gap-filler, but as a funder of innovation, taking risks that governments and traditional donors often cannot. The flexibility of philanthropic capital makes it uniquely suited for incubating high-impact, early-stage initiatives, particularly in community-led contexts.

While philanthropic capital presents exciting opportunities for de-risking, the ecosystem for channelling such funds to locally led NGOs remains underdeveloped.

3. Financial Sector Recovery as a Foundation for Syria’s Future

Sessions focused on Syria, such as “Building Forward in Syria” and “Financial Sector Resilience in Syria”, underscored how economic recovery cannot occur without attention to the underlying financial systems. From rebuilding trust in local banking to enabling access to capital for small and medium-sized enterprises, the need to create an enabling environment for investment was repeatedly stressed.

Innovative instruments such as Islamic finance (zakat and sukuk), diaspora bonds, and blended financing platforms were explored as viable entry points. These tools are of particular interest to Action For Humanity as we consider how to support local economic development and transition out of protracted humanitarian dependency in Syria and similar contexts.

4. Climate Finance and Green Infrastructure Take Centre Stage

The official launch of the UNDP–UNCDF Green Financing Platform marked a key moment at the conference. Designed to mobilise capital for climate-aligned development across the Arab states, the platform introduced tools for scaling green infrastructure, including solar energy, sustainable agriculture, and water systems, particularly in fragile contexts.

Climate finance was not treated as a niche agenda but as a core feature of the future development paradigm. Several sessions reinforced the need for climate adaptation and resilience financing to be integrated into mainstream programming, especially in regions vulnerable to environmental shocks. This presents a strong incentive to scale and reposition our solar and WASH infrastructure projects within climate adaptation frameworks, increasing our access to green funding channels.

5. Emerging Donors and South–South Partnerships are Reshaping the Landscape

FfD4 highlighted the rising prominence of non-traditional donors, including Gulf and Asian states, many of which are deploying flexible and values-aligned financing. These actors are not only increasing their funding volumes but also experimenting with models that emphasise mutual accountability, local capacity building, and sovereign co-ownership.

For civil society organisations, this represents both a challenge and an opportunity. It requires us to adapt how we build partnerships, present our value propositions, and align with regional priorities. However, it also opens up new pathways for collaboration, rooted in shared development experiences and a common political geography.

6. Institutional Readiness and Outcomes-Based Financing

A recurring theme across the sessions was the importance of institutional capacity, particularly in relation to data, transparency, and accountability. New funding models, including outcomes-based financing, require NGOs to demonstrate impact in quantifiable and cost-efficient ways. These models shift the emphasis from inputs and activities to measurable social returns.

For us, this means doubling down on monitoring and evaluation systems, investing in evidence-based design, and developing investment briefs that clearly articulate the long-term cost savings and impact of our work. As new mechanisms, such as the SDG Outcomes Fund, are introduced, institutional readiness will be crucial for accessing them.

A Forward Look

FfD4 was ultimately a space for recalibration. The global community clearly recognises that the current pace and structure of financing will not achieve the SDGs. What emerged in Seville was not a singular solution, but a set of practical frameworks, tested tools, and emerging political alignments that can support real progress, so long as actors are willing to engage, adapt, and collaborate.

The path forward involves translating these global trends into operational strategy: pursuing blended financing models where appropriate, designing bankable green projects, investing in internal systems, and engaging with new donors who share our vision of community-led recovery.

As a humanitarian actor committed to transformation in fragile contexts, we face this moment with both challenge and possibility, and we are ready to respond.