A 2025 World Economic Forum report presents an encouraging picture of the potential social enterprises hold for Africa. Prepared by the Schwab Foundation for Social Entrepreneurship, in collaboration with Africa Forward, the African Union Commission, the Motsepe Foundation and SAP, The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa estimates that the 2.18 million social enterprises that operate across the continent represent 17% of all African businesses.
The report maintains that African social enterprises generate about $96 billion (R1.5 trillion) in annual revenue, representing around 3.2% of Africa’s gross domestic product. Sustaining at least 12 million jobs, these enterprises are notable for their scale as well as their composition. More than half are led by women, compared to about one in five for conventional businesses in sub-Saharan Africa, and over a third are led by people under 35.
Drawing on a multi-country survey of 1 980 social enterprises, the study suggests that inclusive employment is a defining feature of social enterprises. As many as 91% employ youth, 82% employ women and 23% hire people with disabilities. The sectors with the greatest concentration of activity are education (21%), agriculture (15%), and health and wellbeing (12%).
The African Union’s adoption in early 2025 of a 10-year strategy to promote a social and solidarity economy signals growing recognition across the continent of the role that locally rooted, purpose-driven social enterprises play in supporting the economy. This is especially true in a time of declining development aid, persistent inequality and intensifying climate change pressure.
The findings also identify consistent constraints for social enterprises, including limited public awareness, weak enabling policy and legal frameworks, as well as restricted access to finance, challenges that are particularly acute for informal enterprises.
The report recommends five priorities for supporting social enterprise development, namely, building enabling ecosystems, unlocking capital, investing in people and skills, fostering partnerships, and strengthening data collection.
Read the full report: The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa
