4 questions NGO leaders need to ask before hiring in Africa

From conflict recovery in South Sudan to climate-driven food insecurity in Madagascar and prolonged drought in Somalia, NGOs are playing an increasingly critical role across the African continent.

But setting up new programmes—or scaling existing ones—isn’t just about strategic intent or funding. It’s about making the right operational decisions, starting with how you hire.

Hiring in Africa brings with it a complex mix of legal, tax, and compliance obligations. Labour laws differ widely across the continent. Contractor classifications shift by jurisdiction. Some governments require majority national hiring. Others tightly restrict the use of expat permits. And rules on payroll, benefits, and NGO registration vary not just by region—but by sector.

So let’s break down four of the most important staffing decisions NGOs need to make when launching or expanding across Africa—and what’s at stake if they get them wrong.

Four critical decisions for NGOs entering Africa

Across Africa, labor laws, tax regulations, and NGO registration requirements vary significantly between countries. Many governments are tightening scrutiny of foreign organizations, enforcing national employment quotas, and introducing stricter controls on work permits and contractor categorizations. Misclassifying workers, failing to comply with local employment mandates, or delaying in-country registration can result in penalties, blocked operations, or loss of credibility with donors and key stakeholders. For NGOs, these delays can derail time-sensitive programming and jeopardize funding.

 When supporting NGOs entering or scaling across Africa, we begin with four foundational questions that help shape a compliant and scalable global expansion strategy:

1. What is the most effective and compliant way to engage international talent – contractors or employees?
2. Is establishing a local legal entity necessary – or would a more flexible model be better?
3. Which national and regional employment regulations in Africa will impact your operations?
4. Will the staffing and operational model support long-term goals in Africa?

These decisions can have far-reaching consequences. As well as influencing your staffing model, they also have important implications for your launch timeline, risk profile, donor confidence and the effectiveness and sustainability of your mission.

Question 1: What is the most effective and compliant way to engage international talent - contractors or employees?

One of the most important decisions NGOs face when expanding operations into Africa is how to engage local talent. Should staff be hired as independent contractors or formally employed under local labor laws? The right approach depends on your program’s scale, urgency, duration, and the level of regulatory complexity your organization is prepared to manage.

 Option 1: Contractors

Contractors typically don’t require the same administrative setup as full employees. When rapid entry is critical, this makes it possible for an NGO to start operating in Africa before establishing a formal legal entity. But while this option provides speed, flexibility, and reduced overhead, it’s not without serious risks.

 Across Africa, labor authorities are becoming more proactive in investigating contractor arrangements. For example, countries like Kenya, Nigeria, and South Africa have well-defined distinctions between employees and contractors. NGOs operating without a clear understanding of local labor laws risk unintentionally misclassifying workers, leading to back payments, fines, and reputational harm.

 To mitigate these risks, NGOs must take a country-specific approach to contracting. This includes understanding how each country defines ‘employee’ and ‘contractor’ ensuring contracts accurately reflect the engagement and any required authorisations are in place. For example, foreign contractors typically need a valid work permit sponsored by a registered local entity.

Option 2: Direct Employment

For ongoing programs and roles that involve close engagement with local stakeholders, formal employment is typically the better option. It signals long-term commitment, enhances operational control, and builds trust with governments, partners, and communities. However, it comes with its own set of administrative hurdles including:

•  Legal entity requirements: In countries like Ghana, Tanzania, and Ethiopia, NGOs must register with both regulatory and tax authorities before issuing employment contracts. A process that can take several months.
• Foreign worker restrictions: In places like Rwanda and Zambia, labor authorities require NGOs to prove that no local candidates are available before hiring internationally.
• Union and labor board involvement: In countries like South Africa and Senegal, employment terms are influenced by unions, sector-specific labor boards, and national collective agreements. This may affect working hours, pay structures, and dismissal processes.

Question 2: Is establishing a local legal entity necessary – or would a more flexible model be better?

If your NGO decides to hire employees rather than independent contractors, the next decision is how to employ them. Two main options are viable across most of Africa – registering as a local legal entity or partnering with an Employer of Record (EOR). The right choice depends on your timeline, headcount, risk tolerance, and long-term goals.

Option 1: EOR

Adopting the EOR model allows NGOs to build compliant local teams quickly, without the time, cost, and complexity involved in establishing a legal entity. For example, as an EOR, TopSource Worldwide partners with NGOs across Africa, acting as the legal employer on their behalf. We take on full responsibility for managing employment contracts, payroll, taxes, statutory benefits, and regulatory compliance, significantly reducing the administrative and legal burden on NGOs. This allows them to focus their time and resources on delivering impact from day one.

 When acting as an EOR, we can help NGOs deploy local teams in Africa in as little as four weeks. The speed and simplicity of this hiring approach makes it particularly effective in the following circumstances:

•  Launching pilot or short-term programs in new countries
• Hiring fewer than 10 national staff in Africa
• To avoid direct legal exposure during early stages
• Bridging operations during the legal entity registration process

 Option 2: Local entity setup

As NGO programs in Africa evolve from short-term interventions to long-term development efforts, establishing a local legal entity setup is the next strategic move. This model offers greater operational control, builds long-term credibility with governments and donors, and supports permanent staffing structures. It also enables NGOs to compete for government tenders, receive grants from in-country sources, and foster deeper partnerships with the communities they are working within.

 However, this option comes with various complexities and considerations. For example, each African country has its own legal and administrative pathway for registering non-profit entities, each with different degrees of difficulty and timelines. For example:

•  Kenya: International NGOs must register with the NGO Coordination Board and submit annual activity plans and budgets.
• South Africa: NGOs can register as a Non-Profit Company (NPC) through the Companies and Intellectual Property Commission (CIPC).
• Ghana: Registration happens via the Registrar General’s Department as a Company Limited by Guarantee.
• Nigeria: NGOs register under the Corporate Affairs Commission (CAC) as Incorporated Trustees. This process that can be lengthy and politically sensitive.
• Rwanda and Uganda: Both have streamlined international NGO registration processes but require close collaboration with government.

 As a result, while setting up a legal entity strengthens long-term presence, it also introduces significant legal and compliance responsibilities. Which neatly leads to our next question.

Question 3: Which national and regional employment regulations in Africa will impact your operations?

While setting up a legal entity strengthens long-term presence, it also introduces significant legal and compliance responsibilities. Here are some examples of the regulatory requirements to plan for:

•  Multi-agency registration: NGOs often must register with tax, labor, and other regulators before operating or hiring staff. This process can add months to your timeline.
• Governance and board composition: Some countries require that a minimum portion of a board’s membership is held by local citizens or residents. These vary country to country. For example, while under Kenya’s new Public Benefit Organisations (PBO) Act, at least one-third of a board must be Kenyan citizens, in Malawi, NGO registration requires at least two directors or trustees to be citizens of the country.
• Employment law compliance: NGOs must follow local labor laws, including contributing to the National Social Security Fund (NSSF) and National Hospital Insurance Fund (NHIF) and following local rules on severance pay, paid leave and employment contracts.
• Work permit sponsorship: NGOs employing international staff must navigate visa sponsorship processes and stay within legal quotas for foreign workers. For example, in Uganda, NGOs must apply for a Class G1 work permit for international staff and demonstrate that the skills are not readily available locally before hiring foreign workers.
• Program approvals and memoranda of understanding (MOUs): In countries like Ethiopia, Tanzania, and Malawi, NGOs are often required to sign an MOU with relevant ministries before starting operations or hiring.

In summary, while the need for NGO support in Africa is significant, the compliance requirements around staffing can be complex. This makes a localized staffing strategy essential to ensure the alignment of operations with national labor rules.

Question 4: Will the staffing and operational model support long-term goals in Africa?

When expanding into Africa, choosing the right staffing model is critical – not just for speed of entry, but to ensure a structure will support your NGO’s long-term vision and growth.

 If your organization is launching a pilot program or responding to a humanitarian emergency, an EOR model can help you deploy local teams quickly, with minimal regulatory burden and reduced overhead. However, as your programs scales in size, complexity, and visibility, transitioning to a locally registered legal entity often becomes necessary.

 TopSource Worldwide supports NGOs through every stage of their Africa expansion – from fast, compliant entry using the EOR model to planning and executing the shift to a registered legal entity. As a strategic partner, we help NGOs build staffing strategies that are agile, compliant, and aligned with both immediate goals and long-term development missions.

Need help building or scaling your Africa team compliantly?

Whether launching for the first time or expanding your footprint, if you're planning to expand your NGO’s presence in Africa, our team would be happy to discuss your goals and help develop a practical, compliant path forward.