State of Social Enterprise Africa 2025

Executive summary The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa examines the transformative role of social enterprises in addressing Africa’s most pressing challenges. At a time when Africa faces persistent inequality, accelerating climate disruption and declining development aid, the need for locally led models that foster lasting and sustainable change has never been greater. In this context, the contributions of social enterprises remain both under- recognized yet essential. Positioned at the nexus of business and purpose, these enterprises are creating opportunities that respond to deep-rooted social and environmental challenges. Drawing on a multi-country survey of 1,980 social enterprises and a synthesis of existing data, this report provides a robust evidence base for policy- makers, companies, investors and ecosystem partners to unlock the sector’s full potential (see Appendix: Overview of methodology). The data reveals that there are an estimated 2.18 million social enterprises across Africa, 17% of the 12.7 million business on the continent.1 These businesses: –Are united by their principle of putting purpose before profit –Generate at least $96 billion in annual revenue – approximately 3.2% of Africa’s gross domestic product (GDP) –Create at least 12 million jobs, demonstrating their effectiveness as an engine for job creation, particularly for marginalized communities The social enterprises surveyed: –Champion inclusive employment – with more than 91% employing youth, 82% employing women and 23% hiring people with disabilities –Bridge the gender gap – with more than one in two (over 55%) social enterprises led by women, compared to one in five for conventional enterprises in sub-Saharan Africa –Harness the potential of youth – with more than one in three social enterprises led by youth (individuals under the age of 35)2 –Operate across diverse industries, with the highest concentrations in education (21%), agriculture (15%) and health and well-being (12%) –Deliver against all the United Nations Sustainable Development Goals (SDGs), especially those focusing on health, education, climate and jobs –Face common barriers such as lack of public awareness, support, enabling policy and legal frameworks and access to finance, especially for informal social enterprises Realizing the full potential of Africa’s social enterprises requires coordinated action around five cross-cutting priorities: building enabling ecosystems; unlocking capital; investing in people and skills; fostering partnerships; and gathering data and evidence. This report provides recommendations for governments, the private sector, investors, philanthropies and development partners to act on these priorities and unlock the sector’s potential. This research builds on the efforts of a sector-wide advisory group, Aligned for Impact,3 convening leading networks, public-sector actors and researchers to address critical data gaps and harmonize how insights are collected across the social enterprise sector. The report forms one of the concrete pilots used by the group to put its research guidance into practice. The result is a comparable, policy-ready evidence base. It calls on governments, companies, investors and ecosystem partners to put social enterprises at the heart of Africa’s inclusive growth engine. After all, the data shows that social enterprises can unlock jobs and access to opportunities for youth, women and marginalized communities to drive the continent’s unique pathway to prosperity. There are an estimated 2.18 million social enterprises in Africa, generating around $96 billion in annual revenue, creating at least 12 million jobs, with more than half of them led by women and more than one-third led by youth. The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 5