Experts warn against overregulation of Non-profit sector in Africa

Experts at the 2nd Africa Civil Society AML/CFT Conference 2025 have raised concerns that overregulation of the non-profit sector in Africa is stifling humanitarian activities and undermining the ability of non-governmental organizations (NGOs) to operate freely.

Despite the importance of preventing money laundering and terrorist financing, stakeholders emphasize the need for balanced regulations that do not impede the vital work of NGOs in communities across the continent.

The 2nd edition of the Africa Civil Society AML/CFT Conference 2025, Gaborone, Botswana, organised by Spaces for Change | S4C (West Africa) and Civic Advisory Hub (Uganda) (collectively referred to as Africa Civil Society Initiative on AML/CFT) in collaboration with the Ministry of Labour and Home Affairs (Botswana) and the ICIFF University of Botswana.

The three-day conference, themed “Placing civic space at the heart of combating money laundering and countering the financing of terrorism, commenced between 15th and 17th October.

The year’s conference brought together key stakeholders, including government ministries and departments, law enforcement agencies, donor bodies, intergovernmental agencies, regional bodies, financial intelligence units, local and international nonprofit organizations, diplomatic communities, academic institutions, media and so forth.

African Civil Society Organizations are vital partners in identifying and mitigating money laundering and terrorist financing (ML/TF) threats due to their deep grassroots presence, legitimacy, and firsthand insight into community needs and risks.

Unfortunately, current anti-money laundering/countering the financing of terrorism (AML/CFT) measures sometimes marginalize or even criminalize CSOs, rather than
empowering them.

By placing civic space at the heart of AML/CFT efforts, we can ensure more effective, risk-based, rights-based, and community-informed approaches that align security objectives with social justice, development, and humanitarian principles.

At the opening ceremony, dignitaries, regulators, and civil society organizations (CSOs) representatives, in their individual remarks, spoke to the theme of the conference.

In his opening remark, the President of the Republic of Botswana, Dumo Gideon Boko, noted that “organised crime is a growing reality in Africa,” adding that “both state and non-state actors, including NPOs, must be willing to undergo painful yet necessary scrutiny to ensure they are not exploited as conduits for illicit activities.”

His Excellency also pointed out that, “Our societies are increasingly characterised by a highly materialised upper class,
a vulgarised middle class, and a brutalised lower class, with money launderers and terrorism financiers firmly embedded within the upper echelon”, while noting that “our
legal systems must operate with efficiency and integrity, countering such crimes without infringing upon civic freedoms”.

On her own part, the Executive Director of Spaces for Change|S4C, Mrs. Victoria Ibezim-Ohaeri, explained how increased regulation of the non-profit sector in Africa is hindering the humanitarian activities of NPOs.

According to her, “while NPOs are not averse to government oversight, overregulation stifles their ability to organise, operate, and carry out their charitable activities freely”.

Other conference activities include highly intense masterclasses on key areas of AML/CFT initiatives, like discussions around bank derisking, which was led by Spaces for Change, which took a deep dive into the financial services difficulties faced by NPOs as a result of disproportionate application of AML/CFT standards by financial institutions without a risk-based approach.

Other masterclass sessions include NPO compliance automation, risk assessment, illicit procurement and whistle-blowing protection, and a women-centered focus on CFT in Africa. The remaining days will feature a mixture of panel sessions on key areas like the Financial Action Task Force (FATF) Recommendation 8 (R8), NPO regulation, and the official launching of Spaces for Change’s high-value report titled “Security First: The Impact of Security Laws on Civic Space in West Africa” which provides evidence showcasing how the security paradigm constrains the civic space while limiting civil society operations in West Africa.

In conclusion, the conference has so far provided a high-level platform for NPOs across Africa to come together with heads of governments, regional bodies, Financial Intelligence Units, charity regulators, FATF regional-style bodies (FSRBs), law enforcement agencies, diplomatic communities, academia and international development partners to mutually reflect on the national and regional efforts to combat money
laundering and terrorism financing in Africa, ensuring that civic freedoms lie at the core of these security measures.