In February 2025, the African Union (AU) Heads of State adopted the continent’s first 10-Year Strategy on the Social and Solidarity Economy (SSE), a landmark commitment to institutionalize inclusive, community-embedded economic models across Africa. It signals a shift from piloting to policy and from recognition to implementation.
In May the same year, a high-level roundtable took place in Nairobi on "Unlocking the Social and Solidarity Economy in Africa," bringing together leaders from African governments, the South Africa G20 Presidency, the private sector and civil society. It focused on the implementation of the AU 10-year strategy.
This step comes amid a storm of structural challenges.
For example, Africa has the world’s youngest population, but over 53 million (more than one in five) young people are neither in work nor in education. The wealthiest 10% control more than 55% of income in sub-Saharan Africa, with many of its countries among the world’s most unequal.
Climate risks, from droughts to floods, are growing, and the continent faces escalating climate shocks, often in areas underserved by formal systems.
Meanwhile, the international development system is facing significant shocks. Global overseas development assistance declined by 7.1% this year and multiple African countries are now contending with debt distress and less flexibility in government budgets.
Private capital, while growing, remains risk-averse and concentrated in urban centres and within high-return sectors.
This is more than a funding crisis; it is a systemic inflection point. The limitations of traditional, top-down, donor-led models are becoming increasingly clear. Africa’s growing embrace of the social economy reflects a deliberate and strategic shift toward scalable, inclusive and future-oriented systems.
Moreover, Africa’s shift to the social economy isn’t simply nostalgia; it’s a strategic move toward scalable, inclusive and future-ready systems.
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