As public- and private-sector leaders convene in Davos for the World Economic Forum Annual Meeting 2026, they face critical questions about cooperation in a contested world, unlocking new growth, investing in people, deploying innovation responsibly, and sustaining prosperity within planetary boundaries. A new report, The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa, provides fresh data on African social enterprises that speaks directly to these challenges and informs the continent’s trajectory over the next decade. Globally, social enterprises are no longer peripheral, generating around $2 trillion in revenue annually and creating nearly 200 million jobs, with roughly half led by women compared to one in five conventional firms.
Africa’s social enterprise sector is particularly significant. The report estimates 2.18 million social enterprises across the continent—almost 20% of the global total—generating at least $96 billion annually, equivalent to about 3.2% of Africa’s GDP, and creating at least 12 million jobs. These enterprises are already part of the solution to Africa’s youth employment challenge. With 10–12 million young Africans entering the labor market each year but only about 3 million formal jobs created, social enterprises play a vital role in providing employment opportunities. Over one-third of African social enterprises are led by individuals under 35, and 91% employ young people, often in sectors like education, agriculture, food systems, and health, while supporting women, youth, and workers in rural and informal settings.
Social enterprises also intersect with Africa’s broader economic transformation. The African Continental Free Trade Area (AfCFTA) aims to create a single market of 1.3 billion people with a combined GDP of $3.4 trillion. While many trade and industrial strategies overlook social enterprises, the report shows that roughly 17% of Africa’s employers are social enterprises that bridge informal and formal economies, integrate small producers into regional supply chains, and digitize value chains. Recognizing social enterprises as core actors in sectors like agriculture, renewable energy, and digital services can better align AfCFTA’s ambitions on trade, jobs, and inclusion with how value is created on the ground.
Innovation and inclusion are demonstrated in practice by social enterprises such as Sommalife in Ghana, which uses digital tools to transform the shea and agroforestry value chain, connecting thousands of female smallholder farmers to higher-value markets, finance, and climate-smart practices. Similarly, South Africa’s Yellowwoods investment group incubates ventures like Harambee Youth Employment Accelerator, combining corporate resources with social innovation to scale solutions in digital skills, youth employment, impact sourcing, and financial inclusion. These examples illustrate how social enterprises, working alongside corporate partners, can prototype inclusive models, reach underserved communities, and build viable markets beyond traditional aid approaches.
Public policy must also adapt to recognize social enterprises as integral to economic development. The African Union’s 10-Year Strategy on the Social and Solidarity Economy emphasizes their role in fostering inclusive and resilient economies. National governments can unlock impact by formally recognizing social enterprises through legislation, regulation, and public procurement, as already seen in countries such as Morocco, Senegal, Tunisia, Cameroon, Djibouti, and Cape Verde. International development institutions facing funding constraints can also leverage social enterprises, which are already delivering livelihoods, services, and resilience, to advance sustainable development outcomes.
The report identifies five cross-cutting priorities for 2026: building enabling ecosystems with supportive policies, legal recognition, and infrastructure; unlocking capital at scale through aligned and blended finance; investing in people and skills, including entrepreneurship and digital inclusion; fostering partnerships for scale via public-private and regional cooperation; and strengthening data and evidence to guide innovative policies and investment. Ultimately, the impact of Africa’s social enterprises depends on whether public, private, and non-governmental actors treat them as marginal projects or as central partners in driving inclusive growth, job creation, and sustainable development across the continent over the next decade.
