When global analysts discuss Africa’s economic future, the narrative often revolves around mega-infrastructure, mineral wealth, or rapid mobile-tech adoption. But a new force is steadily transforming the continent’s economic landscape, social enterprises.
These mission-driven businesses are bridging gaps where traditional markets and governments fall short. From delivering essential services and creating dignified jobs to building climate resilience, social enterprises are emerging as a core pillar of Africa’s inclusive growth story.
And now, for the first time, Africa has a clear roadmap to scale this impact.
A Turning Point: Africa’s First 10-Year Strategy for Social and Solidarity Economy:
In early 2025, African Union Heads of State adopted the continent’s first-ever 10-Year Strategy on the Social and Solidarity Economy (SSE).
This landmark framework recognizes social enterprises, cooperatives, and community-based organizations as central to building resilient, people-centered economies.
This comes at a crucial moment:
• Global aid is declining
• The youth population is surging
• Climate shocks are intensifying
Africa needs new economic actors and the social enterprise sector is stepping up.
The Most Comprehensive Snapshot Yet: New Report Maps 2.18 Million Social Enterprises:
A new flagship study, The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa, provides the clearest view yet of Africa’s social enterprise ecosystem.
Developed by the Schwab Foundation for Social Entrepreneurship, World Economic Forum, African Union Commission, Africa Forward, Motsepe Foundation, SAP, and Genesis Analytics, the report surveyed 1,980 enterprises across five major economies: Cameroon, Ethiopia, Ghana, Kenya, and South Africa.
Key Findings (SEO-rich, highly shareable data):
• 2.18 million social enterprises operate across Africa
• They generate $96 billion in annual revdata, 3.2% of Africa’s GDP
• They support 12 million jobs
• 55% are led by women far higher than the region’s commercial sector
• 1 in 3 is led by founders under 35
These findings were unveiled during the G20 Leaders’ Summit in South Africa (2025), highlighting global recognition of Africa’s rapidly expanding impact economy.
Real Enterprises, Real Impact: How Social Businesses Are Reshaping Communities:
- Babban Gona – Empowering Farmers in Nigeria:
Babban Gona transforms rural livelihoods by offering smallholder farmers credit, training, inputs, and guaranteed crop offtake.
• Over 744,000 indirect jobs created
• Farmers earn twice the national income average
• Nearly 1 million people benefit from increased livelihood security
- ShonaquipSE – Advancing Disability Inclusion in South Africa:
This hybrid social enterprise manufactures modular wheelchairs and reinvests revenue into community-based clinical training.
• 21,000+ clients receive assistive devices annually
• 347,000+ people reached through training and advocacy
• Serves as technical adviser to WHO, USAID, and CHAI
- Sanergy Collaborative – Circular Sanitation for Nairobi:
Sanergy delivers affordable sanitation while converting waste into regenerative agriculture inputs.
• Daily access for 300,000+ residents
• Network of 8,000 entrepreneurs
• Supplies sustainable fertilizer to 10,000+ farmers
• Independently assessed 19× social return on investment
Despite Success, Social Enterprises Face Major Barriers:
The report reveals three persistent challenges:
- Limited Access to Finance
Most enterprises fall into the “missing middle” too commercial for grants, too hybrid for mainstream investors. - Lack of Support and Skills
Entrepreneurs outside capital cities often operate without mentorship, market access, or digital tools. - Weak Legal Recognition
Without dedicated legal status, social enterprises struggle with procurement, investment, and policy support.
Five Action Priorities to Scale Africa’s Impact Economy:
To unlock the full potential of Africa’s social enterprises, the report proposes five strategic priorities:
- Build enabling ecosystems with supportive policies and digital infrastructure
- Unlock capital at scale through blended and impact-linked finance
- Invest in people and skills, promoting entrepreneurship and digital inclusion
- Foster cross-sector partnerships for scalable and sustainable growth
- Strengthen data and evidence through continental mapping and public dashboards
The Takeaway: Social Enterprises Could Define Africa’s Next Economic Chapter:
Africa’s social enterprises are not fringe players, they are a major economic engine delivering jobs, revenue, and community-level impact.
The numbers speak loudly:
• 2.18 million enterprises
• $96 billion in revenue
• 12 million jobs
But the real story lies in the transformation of lives: farmers gaining stability, young innovators building digital futures, patients receiving life-changing care.
With evidence in hand and a continental strategy in place, Africa now stands at a pivotal moment. Whether social enterprises remain marginal, or become central drivers of inclusive, sustainable growth, will depend on action from governments, investors, corporates, and development partners.
The momentum is here. The opportunity is historic.
Africa’s next economic chapter may very well be written by its social enterprises.