The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa

The report estimates there are 2.18 million social enterprises in Africa, generating at least $96 billion in annual revenue and creating at least 12 million jobs. It highlights that these enterprises are significant drivers of inclusion, with over 55% led by women and 37% by youth. However, the sector faces critical barriers, most notably a lack of access to finance—affecting 55% of surveyed enterprises—and a lack of dedicated legal frameworks in many countries. The document advocates for a coordinated ecosystem approach involving governments, the private sector, and investors to implement social procurement, blended finance, and supportive regulatory environments.

• Africa is estimated to have 2.18 million social enterprises, which represents approximately 17% of all businesses with employees on the continent and about 20% of the global total of social enterprises.
• Social enterprises in Africa generate at least $96 billion in annual revenue, contributing roughly 3.2% to the continent's GDP.
• The sector is a major engine for employment, creating at least 12 million jobs, with a strong focus on marginalized groups: 91% employ youth, 82% employ women, and 23% employ people with disabilities.
• Social enterprises exhibit significantly higher levels of women's and youth leadership compared to conventional businesses; over 55% are women-led and 37% are led by youth (under 35).
• Financial fragility is widespread, with 50% of social enterprises reporting low solvency, characterized by reliance on unpredictable revenue or donor funding and limited cash reserves.
• Access to finance is the primary barrier to growth, with 55% of social enterprises citing it as their top obstacle, particularly those in the "missing middle" who are too large for microfinance but too small for commercial loans.
• There is a significant gap between seeking and securing external capital; while 49% of social enterprises sought external finance in the last three years, only 33% were successful.
• Formal and informal social enterprises face distinct challenges: formal ones are more hindered by regulatory environments and organizational capacity, while informal ones struggle more with market competitiveness and customer access.
• Most African countries lack dedicated legal frameworks for social enterprises, forcing them to register as either for-profit companies (51% of formal SEs) or non-profits (23%), which often creates governance and taxation trade-offs.
• Social procurement—using purchasing power to source from mission-driven suppliers—is identified as a critical pathway to shift enterprises from grant reliance to stable, market-based revenue.

APA

World Economic Forum (2025). The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa. https://reports.weforum.org/docs/WEF_State_of_Social_Enterprise_Africa_2025.pdf

Chicago

World Economic Forum. The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa. 2025. https://reports.weforum.org/docs/WEF_State_of_Social_Enterprise_Africa_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa |date=November 2025 |url=https://reports.weforum.org/docs/WEF_State_of_Social_Enterprise_Africa_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025state, author = {{World Economic Forum}}, title = {{The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa}}, institution = {World Economic Forum}, year = {2025}, month = nov, url = {https://reports.weforum.org/docs/WEF_State_of_Social_Enterprise_Africa_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }