CASE STUDY 1 Sanergy Collaborative The Sanergy Collaborative, a Nairobi-based circular sanitation social enterprise, demonstrates an innovative, climate-smart and sustainable revenue model that addresses public health, food security and mitigates climate change. The collaborative consists of two founding partners: the non-profit Fresh Life Initiative, which installs and services container-based sanitation (CBS) in low-income settlements, and the for-profit Regen Organics, which upcycles sanitation and organic waste into regenerative agricultural products, such as organic fertilizer and insect protein while mitigating methane and carbon emissions. This hybrid structure creates a revenue-to-mission loop system that keeps sanitation fees affordable while ensuring smallholder farmers benefit from increased yields, income and food supply. By turning waste into value, Sanergy makes safe sanitation viable at scale, strengthens local food systems, reduces grant reliance and creates green jobs. With a network of over 8,000 toilet entrepreneurs, Sanergy has grown to serve more than 300,000 people daily and support over 10,000 farmers, who are seeing increases in yields and incomes with the enterprise’s climate-smart agricultural products, leading to a 19-fold social return on investment. Key insights BOX 1 The estimated $96 billion in revenues generated by Africa’s social enterprises annually represents roughly 4.8% of the $2 trillion in annual revenue generated by social enterprises globally, according to the World Economic Forum’s The state of social enterprise: A review of global data 2013–2023.49 While Africa is home to a significant number of social enterprises – with some studies estimating its share at around 14% of the global total – the smaller average size and earlier stage of many of these enterprises compared to those in more established markets explain the variance between their numerical and revenue shares. This gap also highlights the immense growth potential within the African social enterprise sector.Furthermore, it is essential to contextualize this figure within the broader African economy. With Africa’s projected GDP for 2025 estimated at approximately $3 trillion,50 the $96 billion in revenue from social enterprises represents approximately 3.2% of the continent’s total economic output, indicating that the social enterprise sector is not a marginal player but a significant and active contributor to the African economy itself, playing a vital role in local economic development. The estimated revenue for the social enterprise sector is greater than the $69.53 billion projected for the entire beauty and personal care market in Africa in 2025, reinforcing the substantial relevance of social enterprises within the African context. Credit: Sanergy Collaborative / Sam Kung The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 22

State of Social Enterprise Africa 2025