State of Social Enterprise Africa 2025

1.4 Annual revenue and reinvestment practices Using information on the distribution of annual revenue and the estimated market size, total annual revenue generated by social enterprises in Africa has been estimated to be at least $96 billion. This figure is a highly plausible estimate that is grounded in the reality of Africa’s enterprise landscape. It is well established that the continent’s business ecosystem is heavily skewed towards micro-enterprises and a long tail of smaller firms, with a small percentage of larger, more established companies driving a disproportionate share of total economic output. Given that 62% of social enterprises surveyed earn less than $10,000 annually, the majority of the 2.18 million social enterprises would fall into this low-revenue category, contributing a relatively small amount to the overall total. The 17% that earn above $50,000 annually, however, would include the more established and larger social enterprises that generate a significantly higher collective revenue, thereby anchoring the total at a figure of at least $96 billion. The use of the term “at least” acknowledges that the estimate is conservative and that a full accounting of all large private social enterprises would likely result in an even higher figure. Approximately 73% of social enterprises generate revenue by selling products or services directly to individuals, households or other enterprises, indicating a robust market-driven approach. While sales are a primary income stream, 29% also supplement their revenue with support from donors and philanthropic institutions, pointing to a mixed-funding model. Only 11% secure revenue through transactions with the public sector, suggesting limited engagement with government procurement or partnerships. For 45% of social enterprises surveyed, sales of products and services constitute more than half of their total revenues; 13% have more than half of their revenue from donor or philanthropic funding; and 3% earn more than half of their revenue from the public sector. Primary sources of revenue for social enterprises FIGURE 2 Sales: revenue generate from selling products or services to individuals, households or other enterprises Donor or philanthropic funding: revenue from international donors, foundations or NGOs Other: membership or subscription fees, sponsorships, community financing, stokvels/ROSCAs or any other revenue-generating activities No revenue: newly established, not yet commercially active Public sector contracts: revenue from government contracts or subsidies73% 29% 16% 15% 11% Note: A stokvel, or RSCA (rotating savings and credit association), is where a group of individuals or members agree to meet for a defined period in order to save and borrow together. Members all contribute regularly and take turns withdrawing accumulated sums. Source: Survey data, World Economic Forum 19 The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa