Introduction Africa stands at a pivotal juncture, grappling with overlapping crises of poverty, inequality, climate disruption and shrinking aid flows. The wealthiest 10% in sub-Saharan Africa hold over 55% of total income,4 placing the region among those with the highest levels of income disparity globally. Youth remain disproportionately affected: in 2023, 53 million young Africans (21.9% of people aged 15–24) were not in work, education or training, with young women affected most.5 Aid flows, once a cornerstone of support to many African economies, are increasingly under strain. In 2024, official development assistance (ODA) fell by 9% globally. It is projected that ODA will have dropped by a further 9–17% in 2025, cutting net ODA to $170– 186 billion. This represents a potential two-year loss of $56 billion – the steepest reversal in decades.6 For many countries, this means tighter public budgets, rising debt and cuts to essential services. And while economic growth may rise modestly from 3.3% to 3.5% in 2025, this remains insufficient to close gaps in poverty, inequality or youth employment.7 Yet, amid these challenges, Africa also has extraordinary potential. It is home to the world’s fastest-growing youth population, projected to double by 2050, with a cumulative increase in the youth labour force of 72.6 million.8 This surge will create immense pressures for job creation and a unique opportunity to harness Africa’s youthful, entrepreneurial energy for inclusive growth. Small and medium-sized enterprises (SMEs) already provide 80% of Africa’s jobs,9 underscoring its entrepreneurial dynamism. About 22% of working- age adults are starting businesses.10 Women are twice as likely to become entrepreneurs than the global average,11 and 75% of youth plan to launch ventures within five years.12 Much of this occurs in the informal economy, which employs 85% of workers13 and contributes up to 40% of GDP in some countries,14 making informality a central expression of Africa’s entrepreneurial landscape. In Africa, entrepreneurship is often collective, rooted in solidarity, reciprocity and embeddedness within communities. From rotating savings groups and cooperatives to mutual aid networks and community insurance schemes, African societies have long organized economic activity around trust, shared responsibility and collective resilience. By combining business acumen with social purpose, they create economic value and measurable impact that drive inclusive growth – extending clean energy to underserved communities, linking smallholder farmers to markets, widening access to affordable healthcare and education and creating dignified jobs for women and young people. Globally, there are an estimated 10 million social enterprises, generating around $2 trillion in annual revenue, creating nearly 200 million jobs, with one in two led by women, compared to one in five for conventional businesses. Africa’s contribution to this movement is vital and growing, though under- recognized in mainstream analysis. A lack of understanding and data limit the recognition of the role of social enterprises in advancing sustainable development. This report seeks to close that evidence gap, building on The State of Social Enterprise: A Review of Global Data 2013–2023,15 to provide one of the most comprehensive multi-country analyses of social enterprise in Africa to date. The present report is the result of a collective effort supported by strategic partners – the Schwab Foundation for Social Entrepreneurship, in collaboration with the World Economic Forum, Africa Forward, the African Union Commission (AUC), the Motsepe Foundation and SAP – whose leadership anchored this work. It was steered by an Africa Advisory Group on Social Enterprise Data, including Ashoka Africa, the African Social Enterprise Workshop, Catalyst Now (Cameroon Chapter), Social Enterprise Connect (South Africa), Social Enterprise Ethiopia, Social Enterprise Ghana and Social Enterprise Kenya, alongside academic experts and other contributors acknowledged in this report. This research adds to a growing body of African scholarship on social enterprise, reflected in emerging research, scholars and networks such as the African Network of Social Entrepreneurship Scholars, alongside other initiatives across the continent. It also builds on earlier national mapping studies and regional efforts spearheaded by organizations such as the British Council and Siemens Stiftung.Across Africa, social enterprises are harnessing the continent’s entrepreneurial spirit and youthful energy to build a brighter future, despite today’s challenges. The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 6

State of Social Enterprise Africa 2025