Why the social and solidarity economy is key to South Africa’s G20 Presidency and Africa's sustainable growth

Africa enters 2025 at a defining moment. Confronted by a web of escalating crises – deepening poverty, widening inequality, and the urgent threat of climate change. The richest 10% control nearly 56% of total income, reflecting extreme disparities seen in Latin America and India. Youth unemployment is at an alarming high, with over 53 million young Africans out of work or education. Meanwhile, climate change is destabilizing communities, heightening resource conflicts, and jeopardizing food security.

Amid these challenges, the continent also holds the keys to its own transformation. Africa’s rapidly expanding youth population, projected to double by 2050, will see a cumulative growth in the youth labour force estimated at 72.6 million. This represents a demographic dividend capable of reshaping its future. In addition, Africa’s social and solidarity economy (SSE) offers a proven and scalable pathway for addressing these challenges, and driving inclusive and sustainable development.

The SSE consists of social enterprises, cooperatives, and mission-driven organizations that place people and the planet before profit, delivering innovative and impactful solutions to Africa’s most urgent development challenges. The SSE is not just an alternative economic model, it is a blueprint for systemic change.

A World Economic Forum report estimates there are approximately 10 million social enterprises worldwide, generating $2 trillion annually and creating more than 200 million jobs, all while achieving measurable positive impact. Notably, one in two of these enterprises is led by women. Acting as society’s "R&D lab" for social and environmental solution, SSE initiatives from across Africa are demonstrating its transformative power:

Momentum for the SSE is accelerating, with increasing support from public and private sectors to drive its growth. However, further unlocking the potential of the SSE requires bold action on three fronts:

Countries such as Cape Verde, Cameroon, Djibouti, Morocco, Senegal, and Tunisia have adopted policies or regional frameworks to enable the SSE. Two additional countries with a strong SSE include South Africa’s Draft Social Economy Policy, and Ghana’s Draft Social Enterprise Policy. Countries such as Kenya have has established dedicated government Ministries for the sector, and meanwhile, the African Union’s 10-year SSE strategy will be adopted at the AU Presidential Summit in 2025, providing a continent-wide framework for scaling impact. To build on this progress, governments should increasingly prioritize enabling legislation, harmonize policies across borders, and cultivate public-private partnerships to create environments where SSE organizations can thrive.

In 2024, impact investment reached an estimated $1.5 trillion globally, with 53% of impact investors planning to increase their investments Africa. Unlocking innovative financing approaches and tools such as blended finance, venture philanthropy and outcomes-based financing can further attract private capital to scale the SSE in Africa. Additionally, social procurement by governments and corporations can drive demand for SSE products and services, integrating them into mainstream supply chains. Training programmes to enhance financial literacy among SSE organizations and capacity-building initiatives for procurement readiness are essential to maximize the sector’s reach and impact.

Africa’s youth must be at the forefront of driving SSE initiatives. Their creativity and energy are key to sustainable transformation. Providing young leaders with tailored education, mentorship programmes, and access to funding – such as grants and low-interest loans – will empower them to lead impactful enterprises. Integrating youth voices into policymaking and fostering platforms for their participation in decision-making will ensure the SSE reflects their aspirations and secures a more inclusive future.

South Africa’s 2025 G20 Presidency marks a historic moment for the continent, as Africa’s first G20 Presidency provides a platform to put the SSE firmly on the global development agenda. South Africa already has a thriving SSE ecosystem and is well-positioned to champion inclusive growth, with President Ramaphosa having declared a G20 Presidency themed on “Solidarity, Equality, and Sustainability.” With the Presidency theme aligning with the African Union’s 10-year SSE strategy, and the AU now being a permanent G20 member, South Africa is well poised to cement this G20 Presidency as "Africa’s G20." In 2025, South Africa has the opportunity to leave a lasting legacy in Africa’s development, by spearhead bold SSE initiatives that:

Africa’s challenges are immense, but so too are its opportunities. The SSE offers more than solutions – it offers a movement. It is a call to action for governments, investors, and citizens to reimagine growth that is equitable, inclusive, and sustainable.

The time to act is now. South Africa’s leadership at the G20 presents a once-in-a-generation opportunity to showcase the power of the SSE, and to set a new regional and global standard for inclusive economies. If this growing momentum on SSE is harnessed, then potential will be turned into progress, ensuring that no one is left behind in Africa’s journey to Agenda 2063, the African Union’s long-term vision for Africa’s development.

Contributing author: Luvuyo Rani, Co-Founder and Member of the Board, Silulo Ulutho Technologies.