Report maps Africa’s social enterprise sector, highlighting revenue, employment and policy developments

A new study supported by the World Economic Forum outlines the scale and characteristics of social enterprises across Africa, including their presence in South Africa.

A new study supported by the Schwab Foundation for Social Entrepreneurship, the World Economic Forum, the African Union Commission, Africa Forward, the Motsepe Foundation, and SAP provides updated data on the scale and role of social enterprises across Africa.

The report, The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa, offers a detailed mapping of the sector and outlines its economic contribution. It estimates that the continent has 2.18 million social enterprises, accounting for 17% of all firms with employees. Together, these organisations generate approximately $96 billion in annual revenue—about 3.2% of Africa’s GDP—and support 12 million direct jobs.

The study defines social enterprises as mission-led businesses that apply commercial models to address social or environmental issues. Their expansion is occurring in a context of limited development assistance, slow economic growth, and persistent structural gaps.

The data indicates a notable presence of young leadership, with one in three social enterprises founded by individuals under the age of 35. Employment patterns also show a concentration on groups that traditionally face labour market constraints: 91% employ youth, 82% employ women, and 23% employ persons with disabilities. Many of these organisations operate in rural or peri-urban areas with lower levels of formal employment.

Three sectors account for the largest share of activity: education (21%), agriculture (15%), and health and well-being (12%). These areas align with several Sustainable Development Goals.

Although 64% of social enterprises reported a profit or surplus in the most recent year, the study identifies access to finance as the main operational constraint. Approximately half of surveyed organisations reported low solvency, pointing to the need for improved financial instruments and broader ecosystem support.

The publication follows the African Union’s adoption of a 10-Year Social and Solidarity Economy Strategy, the first of its kind for the region. Several countries—such as Cameroon, Senegal, Morocco, and Tunisia—have enacted national SSE frameworks, while South Africa and Ghana are developing their own policies.

The report outlines five priority areas to strengthen the sector: developing enabling ecosystems, improving access to capital, investing in skills, supporting cross-sector collaboration, and expanding data availability.

According to the authors, the sector provides a locally driven model for addressing development needs at a time when external funding is under pressure.