State of Social Enterprise Africa 2025

Benefit corporation For-profit Not-for-profit Cooperatives and community benefit Other4%51% 3% 23% 1% 1% 1%2% 2% 3%1% Not-for-profitPrivate company Community benefit societyWorker cooperativePublic company Producer cooperativesMultistakeholder cooperativeEnterprise cooperativeCommunity interest companyNational SSE laws and strategies National SSE frameworks include legislation or strategies that bring together cooperatives, mutuals, associations and social enterprises under a common umbrella to strengthen solidarity-based economies. SSE laws have been enacted in Cabo Verde (2016),32 Cameroon (2019),33 Djibouti (2019),34 Mali,35 Morocco,36 Tunisia (2020)37 and Senegal (2021),38 with Côte d’Ivoire advancing a draft framework and a National SSE Strategy 2025–2027. These frameworks are often anchored in ministries of labour and social protection, with priorities such as job creation, financial inclusion and protecting vulnerable groups. For social enterprises, they provide legitimacy and embed them in a wider ecosystem of recognition, networks and institutional support. Yet many social enterprises pursue models requiring additional support in enterprise development, innovation and access to diverse investment. To meet this diversity, SSE frameworks are effective for social enterprises when complemented by instruments such as impact investment facilitation, incubation schemes, social procurement, blended finance or public–private partnerships (PPPs). National policy processes and institutional anchors Policy frameworks for social enterprises take diverse forms beyond legislation. Some countries have adopted national strategies under dedicated institutions, while others have developed draft policies that have advanced support for social enterprises. Together, these approaches provide different forms of visibility, legitimacy and access to support. On social enterprise and the social economy –South Africa’s Draft Green Paper on the Social and Solidarity Economy,39 developed by the Department of Trade, Industry and Competition, has helped shape policy around the social economy. The green paper has informed initiatives such as the Presidential Employment Stimulus,40 which has channelled resources to social economy actors – notably through programmes such as the Social Employment Fund, implemented by the Industrial Development Corporation (IDC), to support community-based, socially useful work. –Ghana has developed a Draft Social Enterprise Policy41 under the Ministry of Trade and Industry. By locating it within this portfolio, Ghana has framed social enterprises as contributors to enterprise development, entrepreneurship and inclusive growth. While not yet formally adopted, the process has created visibility for social enterprises and a pathway for integration into enterprise-support mechanisms.On the social and solidarity economy –Mali adopted a National Policy and Action Plan on SSE (2014) and subsequently created a National Support Centre (2017) to coordinate implementation.42 –Senegal established a dedicated Ministry of Microfinance and SSE (2017), which later oversaw adoption of the SSE law (2021).43 As part of its implementation, the government is preparing a national strategy to engage the private sector, promoting corporate social investment into the SSE. This aims to diversify financing for SSE stakeholders while aligning business contributions more closely with national priorities. –Countries such as Morocco and Cameroon have integrated their SSE portfolios into existing ministries – for example, Morocco’s Ministry of Tourism, Handicrafts and Social and Solidarity Economy and Cameroon’s Ministry of Small and Medium-Sized Enterprises, Social Economy and Handicrafts. For social enterprises, these policy processes and institutional anchors are significant because they create points of contact with government, raise sector visibility and can unlock resources or programmes even before formal adoption. Their effectiveness depends not only on legal codification but also on how governments translate policy intent into instruments, institutions and implementation capacity. Adapting in the absence of dedicated frameworks For social enterprises operating informally, flexibility, low-entry barriers and community trust are advantages, but informality limits access to finance, procurement, legal protections and policy support. For formally registered social enterprises, in the absence of dedicated designations it is critical to understand how existing legal and regulatory arrangements shape incentives, constraints and adaptive strategies, and what complementary instruments may be needed to balance trade-offs. Many social enterprises register under existing categories – either as for-profit companies or non-profit organizations. Each route confers benefits (market access and investor networks for companies; donor eligibility and charitable alignment for non-profits) but neither was designed primarily for models that combine trading with a primary social mission. Social enterprises adapt within these forms, for example by creating dual entities (a non-profit plus trading subsidiary), adding mission or asset- lock clauses to statutes or ring-fencing surpluses through internal policies. These adaptations provide legal standing but may force compromises in governance or financing (e.g. equity limits in non- profits; investor expectations in for-profits). SSE laws have been enacted in Cabo Verde (2016), Cameroon (2019), Djibouti (2019), Mali, Morocco, Tunisia (2020) and Senegal (2021). The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 17