A candid look from the inside by one of our management experts
Having spent nearly a decade in the international development space, largely on the business development side, I have watched the ground shift beneath our feet more than once. But the changes we’re seeing now feel different. Deeper. More structural.
We have entered a new phase in the donor-funded development world. Whether you look at the major budget cuts from USAID or the broader decline in public donor investment across Europe, it’s clear that the sector is being reshaped in real time. For those of us responsible for building partnerships, spotting opportunities, and steering proposal development, this means rethinking how we work and where we focus our energy.
A Turning Point: Fewer Funds, Tougher Competition
Let’s start with what everyone is already talking about: USAID’s funding cuts. It’s not just the numbers that are alarming, it is the ripple effects they create. The cuts have meant fewer opportunities, smaller scopes, and, in many cases, donors pushing for leaner, more localised programming.
At the same time, competition has intensified. Organisations that never used to bid on mid-sized tenders are now going after them aggressively. Even firms that used to be selective are now chasing almost everything just to keep their pipelines alive. It’s become a crowded arena where relationships, agility, and timing matter more than ever.
From a business development perspective, the pressure is real. You cannot afford to chase everything. It is about choosing battles wisely, building consortia early, and staying laser-focused on where your organisation adds real value, not just where there is budget.
The Broader Picture: A Declining Donor Investment Trend
USAID’s retrenchment is not an isolated case. Across Europe, traditional donors such as the UK’s FCDO, Germany’s BMZ, and even EU institutions are tightening their development budgets. This is due to multiple intersecting factors: post-COVID economic pressures, rising geopolitical tensions (e.g., aid redirection due to the Ukraine war), and an inward focus in domestic policies.
This contraction signals a long-term recalibration of donor priorities. We are witnessing a shift from expansive, multi-sectoral interventions to more targeted, politically-aligned programmes. For example, funding is increasingly tied to migration control, energy security, or countering China’s influence in the Global South. From a business development perspective, this means that understanding the political undercurrents of donor decision-making is now as critical as technical expertise.
The Push Toward Localisation: Rethinking Roles
Another major shift – one that’s been talked about for years but is now actually happening – is the donor push for localisation. We are seeing more calls that either require or strongly favour local prime applicants, and this changes the dynamic for international firms.
It is no longer enough to parachute in technical expertise. The conversation is shifting toward how you partner, how you build capacity, and how you truly share leadership with local actors. For those of us in Business Development roles, this means we need to spend more time getting to know potential local partners, investing in relationship-building long before a call comes out, and being honest about what we bring to the table, and what we don’t.
In many ways, it’s a welcome change. But it does require a mental and structural shift. We’re no longer always the lead, we’re facilitators, enablers, sometimes just one piece of a larger puzzle.
Politics Over Policy: A New Layer of Complexity
One thing that’s become clear is that international development is no longer just about needs – it is increasingly about politics. Aid is being used as a tool of foreign policy more openly than before. Whether it’s linked to migration deals, energy dependencies, or geopolitical rivalries, funding is being channelled based on strategic interest.
This doesn’t mean that good development work isn’t being done, it is. But for those of us working on bids and partnerships, we need to understand the political backdrop better. Why is this project being funded now? What’s the bigger picture? These questions matter, because they often shape what kind of proposals get selected and who the preferred partners are.
In this context, building strong connections, not just with NGOs and implementers, but also with donor reps, embassy staff, and regional analysts – is more important than ever. Business development is increasingly a mix of technical insight, strategic timing, and political intelligence.
What We Need to Do Differently
Here are a few things I believe we, as business development professionals, need to focus on in this evolving landscape:
- Prioritise Smartly
It’s tempting to go after every opportunity, especially when pipelines are thin. But spreading too thin leads to burnout and low-quality proposals. We need to get better at qualifying leads and walking away from the ones that don’t make strategic sense – even when budgets look tempting.
- Invest in Genuine Partnerships
Donors are paying attention to how consortia are formed and whether partnerships are meaningful. That means moving away from transactional teaming and toward real collaboration. It takes more time, but it pays off in both proposal strength and project success.
- Get Comfortable with Ambiguity
Calls are changing. More co-creation. More adaptive programming. Less clarity upfront. This demands a mindset shift. Instead of looking for perfect ToRs and rigid outputs, we have to be comfortable proposing approaches that are flexible, iterative, and responsive to local dynamics.
- Build Resilience in Teams
Let’s not sugarcoat it, Business Development teams are under pressure. The volume, the stakes, the speed – it takes a toll. We need to look after our teams and ourselves. That might mean distributing responsibilities better, outsourcing smartly, or even rethinking how we measure success.
- Diversify the Funding Base
If we’ve learned anything, it’s that depending too heavily on one donor is risky. There’s room to grow relationships with foundations, multilaterals, even private sector players with an interest in social impact. It won’t replace donor funds overnight, but it builds resilience and opens new doors.
A Sector in Transition
At times, these changes feel overwhelming. But they also create space for innovation. We have a chance to do things differently, to move away from overly bureaucratic, top-down programming toward models that are more grounded, more local, and more sustainable.
It won’t be easy. Business development has always been about navigating uncertainty, but the level of complexity we’re dealing with now is next level. Still, if we stay adaptable, invest in the right relationships, and stay rooted in purpose, not just profit, we can continue to grow, even in a leaner landscape.
Final Thoughts
There is no single roadmap for what comes next. But one thing is clear: the skills that will define successful business development professionals in the next five years aren’t just proposal writing or donor mapping. They are strategic thinking, political awareness, collaborative leadership, and, above all, patience.
Rather than seeing the changes as threats, we should view them as a call to action, to build leaner, more responsive, and more authentic development models. The winners in this new era will not be the ones with the largest proposal teams or biggest budgets, but those who can think creatively, act decisively, and partner meaningfully.
