The Stakes Are High as SMC’s Agreement Faces Termination

Support channelled through SMC to small organisations in both Sweden and internationally, is cost-effective, high-quality, and transparent. It contributes to a pluralistic and resilient civil society in some of the world’s most critical regions.

However, instead of a well-planned, knowledge-based transition of development assistance tied to the next agreement period, SMC and other civil society actors have received abrupt notifications about upcoming contract terminations. SMC is not even halfway through its five-year agreement, yet Sida has now announced a termination within this year.

This not only forces SMC’s secretariat to devote valuable time and energy to analysing various scenarios and preparing a new application, but it also jeopardises years of investments in development initiatives worldwide. Some organisations currently receiving Sida funding via SMC may be able to apply directly to Sida, but many lack the capacity to do so meaning that several critical initiatives may not survive.

Local Partners at Risk

“If even we, who know the Swedish system well, have little chance of becoming Sida partners, it will be even harder for our partners,” one SMC member remarked.

Many members note that larger organisations will have better chances of adapting, while small and medium-sized organisations stand to lose the most under the government’s new approach.

Network members also highlight that many local partners will struggle to continue rights-based work. Their ability to develop capacity will suffer, and cross-cutting issues such as gender equality, environmental sustainability, climate resilience, conflict sensitivity, freedom of religion, and religious literacy risk being deprioritised—especially since not all funders have the knowledge or willingness to address these issues.

Even organisations that may be able to apply directly to Sida face significant uncertainty about the future of initiatives currently funded through SMC. Among the 16 organisations currently receiving SMC-channelled Sida funds, all but three of the largest report that their local partners would be negatively affected if SMC loses its agreement with Sida.

Interventions in Danger

Losing SMC support would mean a weakened civil society, diminished hope among young generations, and increased corruption in partner countries.

Examples of affected initiatives include:

• Empowering youth in Senegal, Ghana, Madagascar, and Togo to become active citizens who hold duty-bearers accountable for respecting youth rights. This includes efforts on environment, climate resilience, youth leadership, and reintegration of at-risk youth.
• Biodiversity conservation, Indigenous rights, and public finance transparency in Colombia, where a small partner organisation challenges irresponsible businesses and scrutinises government and municipal authorities—work that is difficult to sustain through local fundraising alone.
• Supporting vulnerable groups in poverty across Africa, where partners work to demand accountability from both state and corporate actors while ensuring that marginalised communities receive long-term socially and environmentally sustainable support.

– It’s easy to assume that cutting an intermediary saves money in development cooperation. But what really matters is the cost of each step and the value it adds. We are not just a transaction layer—our work is rooted in close relationships and long-term partnerships, where mutual knowledge exchange is a fundamental part of our approach. Civil society, unlike a government agency, has the unique ability to fulfil this role, particularly within our network of churches and faith-based organisations, says Charlotta Norrby, Secretary General at SMC Faith in development.