REPORTAGE // African Social Enterprise 2026
Highlights from the WEF's 2026 report on the state of social enterprise in Africa
At a time when Africa faces persistent poverty, accelerating climate disruption, and declining development aid, social entrepreneurs are stepping in to create opportunities that directly address deep-rooted social and environmental challenges. According to a recent World Economic Forum report, Africa is home to an estimated 2.18 million social enterprises that generate about US$96 billion in annual revenue and create 12 million jobs.
Africa’s demographic trajectory reinforces both the urgency and potential of this model. Africa is home to the world’s fastest-growing youth population, projected to double by 2050, with an additional 72.6 million young people entering the labour force, creating both a significant employment challenge and an opportunity to harness entrepreneurial energy for inclusive growth.
Despite their growing contribution to local economies, social enterprises remain under-recognised and constrained by systemic barriers, including limited access to appropriate finance, fragmented policy recognition, and underdeveloped support ecosystems. The WEF report, “The State of Social Enterprise: Unlocking inclusive growth, jobs and development in Africa”, offers valuable insights for policymakers, businesses, investors, and ecosystem partners seeking to unlock the sector’s full potential. Alongside existing data, it draws on a survey of 1980 social enterprises across five countries: Cameroon, Ethiopia, Ghana, Kenya, and South Africa. Here are six key takeaways from the report:
Scale and impact of social enterprises
Africa is home to an estimated 2.18 million social enterprises who contribute 3.2% of GDP, generate US$96 billion in annual revenue and create 12 million jobs. Notably, more than half are led by women and over one-third by youth, highlighting the sector’s role in advancing inclusivity. Globally, the sector is even larger, with over 10 million social enterprises generating about US$2 trillion in revenue and nearly 200 million jobs, with women leading 1 in 2 enterprises compared to just 1 in 5 in conventional businesses.
About 73% of the social enterprises surveyed generate revenue by selling products and services directly to individuals, households, or other businesses, reflecting a strong market-driven approach. Nearly a third (29%) supplement this income with donor or philanthropic support, highlighting a blended funding model, while only 11% earn revenue from the public sector, a reflection of the level of engagement with government procurement.
Job creation engine
African social enterprises support about 12 million jobs, with strong inclusion of youth (91%) and women (82%). This sits within a broader entrepreneurial landscape where small businesses account for 80% of jobs, 22% of working-age adults are starting businesses, and women are twice as likely to become entrepreneurs as the global average. With 75% of youth planning to launch ventures and 85% of workers active in the informal economy, contributing up to 40% of GDP in some countries, informality remains a defining feature of Africa’s labour market.
Country trends reveal both scale and strain. Cameroon’s 27,000 social enterprises generate 47,000 full time jobs but face high informality (62%) and low solvency. Ethiopia’s 39,100 social enterprises support nearly 436,000 jobs, combining high formalisation (87%) with strong gender inclusion, despite lacking a dedicated legal framework. Ghana’s 127,200 enterprises employ 578,000 people and show strong inclusion, though 54% report low solvency. Kenya’s 137,800 enterprises employ 796,000 people, with strong growth ambition tempered by financial strain. South Africa, the most formalised market, has 197,000 enterprises supporting 393,000 jobs, however, the absence of a dedicated legal framework continues to constrain growth despite emerging policy momentum.
Leadership transformation
Across the continent, social enterprises stand out for their inclusive leadership and workforce. More than 55% are women-led and 37% youth-led which exceeds conventional enterprises in sub-Saharan Africa, where only 1 in 5 are led by women. Inclusion extends to employment: 91% employ youth, 82% employ women, and 23% include people with disabilities.
At country level, patterns vary. Cameroon shows strong youth inclusion (94%) but low participation of people with disabilities (4%). Ethiopia combines high female employment (84%) with 51% women-led enterprises. Ghana reports similarly strong inclusion (93% youth, 85% women), while Kenya leads in employing people with disabilities (31%). South Africa stands out for gender inclusion leadership, with 67% of social enterprises women-led.
Sector diversity
Social enterprise activity is concentrated in education (21%), agriculture (15%), and health and wellbeing (12%), reflecting alignment with the United Nations Sustainable Development Goals.
Across countries, sector priorities mirror local needs. Cameroon is focussed on agriculture (31%) and trade (18%), linked to economic development and food security. Ethiopia’s activity centres on education (19%) and health (11%), with a strong emphasis on communities, women, and youth. Ghana shows a similar pattern, led by agriculture (22%) and education (16%), targeting food security and inclusion. In Kenya, education (21%) and health (18%) dominate, with a focus on economic growth, climate, and youth. South Africa stands out for its concentration in education (36%) and health (15%), driven by community, women, and youth priorities.
Systemic constraints
Financial constraints remain a persistent barrier across markets with 49% of social enterprises surveyed seeking external funding in the past three years, and only 33% were successful. Grants dominate both demand (64%) and access (56%), while informal sources such as family and friends remain significant (34% sought, 28% secured), highlighting both adaptability and reliance on unpredictable funding.
Across markets, access to capital is uneven. Formal enterprises are nearly twice as likely to seek impact investment and more than twice as likely to secure it, while informal enterprises depend on community-based options such as crowdfunding and personal networks. Solvency is a widespread concern, with half of enterprises reporting low reserves and vulnerability to revenue fluctuations. Beyond finance, weak policy recognition and limited support services hold back growth. Social enterprises must constantly navigate trade-offs in accessing finance, incentives, procurement, and technical support.
Recommendations and opportunities
Unlocking the full potential of Africa’s social enterprise sector will require more deliberate and coordinated action across policy, finance, and ecosystem support. The report calls for governments to establish clear legal recognition and embed social enterprises within national policy frameworks, creating an enabling environment for growth. Access to finance must be broadened through blended models that combine grants, patient capital, and working capital tailored to different stages of enterprise development. Strengthening capabilities is equally critical, with investment needed in financial management, digital tools, and operational capacity.
Collaboration will be central to scaling impact. Stronger partnerships between governments, corporates and social enterprises can unlock new markets, particularly through procurement and supply chains, while improved data systems can support more informed decision-making by both policymakers and investors.
Social enterprises present a scalable pathway to address unemployment, particularly for youth and women, while advancing delivery across health, education, climate, and livelihoods. Growing policy momentum at both continental and national levels provides a foundation for expansion, alongside increasing scope to innovate in blended finance. With the right support, the sector is well positioned to play a far more important role in driving inclusive and sustainable growth across the continent.
Read the report
Read the full report, The State of Social Enterprise: Unlocking inclusive growth, jobs and development in Africa, from the World Economic Forum.
By Denise Mhlanga
