Background: What is the Organisation of Southern Cooperation?
The Organisation of Southern Cooperation (OSC), based in Addis Ababa, is a regional body that brings together member states in the southern regions of Africa. It has historically focused on economic development, border coordination, and collaborative security initiatives. In recent months, the OSC has faced mounting financial pressure that threatens its ability to function effectively on multiple fronts.
Financial Strain and the Breakpoint
According to sources familiar with the situation, the OSC’s financial difficulties date back to January 2025. A combination of delayed member contributions, reduced donor funding, and rising operating costs created a cash crunch that impeded routine programs and administrative operations. In a crisis moment, the organization’s leadership faced a stark choice: scale back activities, seek emergency funding, or wind down operations. The decision appears to have tilted toward a controlled wind-down, as the organization weighs its remaining assets, liabilities, and potential transitional arrangements for ongoing commitments.
Leadership Change: The CEO’s Resignation
Compounding the financial crisis, the OSC’s chief executive officer submitted an irrevocable resignation on December 5. The resignation signals a formal leadership transition amidst instability and raises questions about continuity, negotiations with creditors, and the timeline for winding down. Interim management or an internal transition plan may be considered to ensure orderly closure of programs and the disposition of projects that cannot be sustained without funding.
What This Means for Members and Partners
Members’ failure to remit dues has been identified as a principal trigger for the shutdown. When member states underwrite a regional organization, timely contributions underpin staffing, program delivery, and operational infrastructure. A prolonged funding shortfall can undermine momentum, stall ongoing initiatives, and erode confidence among partner organizations and civil society groups that rely on OSC-supported activities.
For governments and regional partners, the wind-down raises several practical concerns: how existing commitments will be honored, what happens to ongoing projects, and what transitional arrangements will preserve regional cooperation channels. If the OSC officially winds down, member states must consider how to retain essential cross-border coordination, data-sharing mechanisms, and regional dialogue platforms that may be critical for security, trade, and development in the area.
Implications for Regional Stability and Development
Regional organizations of this kind often serve as a bridge between national governments and local communities. The sudden inability to fund personnel, research, and field programs can slow development projects, disrupt regional disaster-response readiness, and limit diplomatic engagement. Stakeholders may turn to bilateral efforts or alternative regional bodies to fill the gap, potentially reshaping existing partnerships and funding priorities.
Next Steps and Possible Outcomes
Analysts expect several paths forward: a formal wind-down plan that safeguards creditors while protecting essential services; a temporary funding package from member states or international partners to stabilize operations; or a strategic realignment where the OSC’s remaining resources are reallocated to priority programs or merged with a neighboring regional organization. The leadership transition will likely become a focal point as the organization clarifies its responsibilities during the closure process and communicates with staff, partners, and beneficiaries.
Reactions and Commentary
Experts note that the situation underscores broader challenges facing regional bodies in Africa, where financial sustainability often hinges on timely member contributions and diversified funding streams. Observers emphasize the importance of transparent governance, long-term fundraising strategies, and contingency planning to prevent abrupt shutdowns that could disrupt regional development trajectories.
Conclusion
The OSC’s decision to wind down reflects a critical moment in Addis Ababa’s regional architecture. As leadership exits and members grapple with payment obligations, the organization’s legacy will hinge on how partners manage the transition, preserve essential regional links, and determine whether a future revival or reform is possible within a different or restructured framework.
