Africa’s social enterprises generate $96bn and 12 million jobs, WEF-backed report reveals

Africa’s social enterprises are emerging as one of the continent’s most powerful engines for inclusive growth, job creation and community development.

This is according to a landmark report released by the Schwab Foundation for Social Entrepreneurship in partnership with the World Economic Forum, the African Union Commission, Africa Forward, the Motsepe Foundation and SAP.

The report, The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa, provides the most comprehensive mapping of the continent’s social enterprise landscape to date.

The study aims to generate robust evidence on the size, scope and characteristics of social enterprises across Africa, examine the contribution of social enterprises to inclusive and sustainable development, strengthen the evidence base on social enterprise, and provide actionable recommendations to build stronger social enterprise ecosystems and support mechanisms to deepen their impact.

It estimates that Africa is home to 2.18 million social enterprises, representing 17% of all businesses with employees. Collectively, these enterprises generate at least $96 billion in annual revenue, equivalent to 3.2% of Africa’s GDP, and support 12 million jobs directly.

Social enterprises, mission-driven businesses using commercial tools to address social or environmental challenges, are increasingly filling gaps left by shrinking development aid, sluggish economic growth and persistent inequalities.

The data reveals a surge of women and youth at the helm of Africa’s purpose-driven economy. More than 55% of social enterprises surveyed are women-led, far above the 15–30% seen in traditional business sectors.

Youth leadership is equally prominent, with one in three social enterprises led by founders under 35.

“These findings show a profound shift in how African women and young people are redefining entrepreneurship,” the report notes. “They are using business not just to earn income, but to solve the continent’s most pressing challenges.”

Social enterprises create jobs that are both meaningful and inclusive. More than 91% employ youth, 82% employ women and 23% employ people with disabilities. Many operate in rural and peri-urban areas where formal employment is scarce.

Sectors with the highest concentration of social enterprises include education (21%), agriculture (15%) and health and well-being (12%)—areas closely linked to the Sustainable Development Goals (SDGs).

Although 64% of social enterprises turned a profit or surplus last year, the report warns that access to finance remains the single biggest barrier to growth.

Nearly half of all surveyed enterprises sought external funding, but only a third succeeded. Grants remain the most accessible capital, while bank loans and impact investment remain out of reach for many, especially informal businesses.

Across the continent, one in two social enterprises report low solvency, highlighting the urgency for better financial instruments, policy support and ecosystem strengthening.

The release of the report follows a major milestone earlier this year: the African Union’s adoption of the first-ever 10-Year Social and Solidarity Economy Strategy, which aims to position social enterprises as central to Africa’s development architecture.

Countries such as Cameroon, Senegal, Morocco and Tunisia have already enacted national SSE laws, while South Africa and Ghana have draft policies underway.

The report recommends five priorities to unlock the sector’s full potential: create enabling ecosystems, expand access to capital, invest in skills, forge cross-sector partnerships and improve data collection.

At a time when global aid is shrinking and development challenges are deepening, the authors argue that social enterprises offer Africa a pathway that is both locally led and economically sustainable.

“Social enterprises are demonstrating that the future of business lies in purpose – in the ability to solve problems that markets and governments alone cannot,” writes Motsepe Foundation CEO Precious Moloi-Motsepe in the foreword.

“Across the continent, social entrepreneurs are creating new pathways for shared prosperity, rooted in local knowledge, community solidarity and a deep sense of shared responsibility. Their work shows that development can be both self-determined and globally relevant.”

BUSINESS REPORT