How social innovators and entrepreneurs guide the G20

 SA has been handed an opportunity to influence global economic policy as it takes over the 2025 presidency of the Group of 20 (G20) this week in Rio, Brazil. It has made history as the first African country to lead this intergovernmental forum comprising 19 countries, the EU and the AU.

The G20 represents about 85% of the world’s economy and close to 80% of the global population. In an era marked by global inequality and accelerating social challenges, the G20 must build on Brazil’s efforts towards fostering inclusive and sustainable economic models. Central to this shift is the recognition of social innovators and entrepreneurs, especially within Africa, as indispensable actors in achieving equitable growth. Their contributions, underpinned by the principles of the social economy, hold the key to unlocking transformative potential for the continent’s economies.

Social innovation as a catalyst for economic transformation

Africa’s unique challenges — ranging from high youth unemployment and inequality to inadequate infrastructure and climate vulnerabilities — require equally unique solutions. Social innovators and entrepreneurs, who blend business acumen with a commitment to social impact, are already leading the way. They are harnessing technology, local knowledge and partnerships to create scalable solutions that address critical issues such as education, healthcare, renewable energy, and agriculture.

Take, for instance, the expansion of Zipline, a social enterprise working in partnership with the government of Rwanda to make blood supply delivery easily accessible to rural communities where there is limited infrastructure. Social enterprises such as Zipline are not only providing much needed healthcare and filling critical service gaps to ensure that even marginalised populations have access to essential services, but also empowering local communities through job creation. These innovations highlight the role of social entrepreneurs as architects of systems that are economically viable and socially equitable.

The G20’s role in elevating social innovation

As an influential economic forum, the G20 has a unique responsibility to mainstream the social economy into global development frameworks. Africa, with its rapidly growing population and untapped market potential, offers fertile ground for such initiatives. To empower social innovators the G20 must prioritise:

• Access to capital. Financing mechanisms such as social impact bonds, blended finance models and grants tailored to the needs of social entrepreneurs must be expanded. This will address the perennial challenge of limited funding for socially driven ventures.
• Policy support. Governments must create enabling regulatory environments that incentivise impact-driven businesses. This includes recognition of a social enterprise structure, tax breaks, public-private partnerships, and streamlined procedures for social enterprises.
• Knowledge sharing. Platforms that connect global innovators with local African entrepreneurs can foster the cross-pollination of ideas and best practices.

The social economy as a cornerstone for Africa’s future

The social economy, encompassing co-operatives, mutual organisations and social enterprises, offers a robust model for economic transformation. By prioritising community ownership, environmental sustainability and equitable profit-sharing, the social economy challenges the exploitative tendencies of traditional capitalist systems. In Africa this approach is particularly vital. Investing in the social economy aligns perfectly with Africa’s aspirations under the AU’s Agenda 2063. It ensures that economic growth does not come at the expense of social justice or environmental sustainability.

SA has a draft White Paper on the social economy, which needs to be revitalised after further consultation with key stakeholders and adopted for implementation. Africa Forward, a movement of social innovators, entrepreneurs and social economy enablers on the continent, is leading the charge on this effort, and mobilising the sector to build its engagement and participation in forums related to the G20 in 2025.   

A call to action

As the G20 deliberates on global economic strategies it must move beyond traditional paradigms of growth and embrace the power of the social economy. Africa’s social innovators and entrepreneurs are not mere beneficiaries of aid or charity; they are partners and pioneers of a new economic order that prioritises human dignity and resilience. By investing in these change-makers the G20 has the opportunity to not only accelerate Africa’s economic transformation but also redefine global prosperity for the 21st century. In doing so it can affirm a shared commitment to a world where growth is inclusive, innovation is purposeful, and progress benefits all.

The time for SA to act is now. The G20 must harness the vision, passion, and ingenuity of social innovators to build a future where the promise of Africa is not a distant dream, but a vibrant reality.

• Dr Rosa is director of the UCT Graduate School of Business's Bertha Centre for Social Innovation & Entrepreneurship. Rani is executive director, and Nambiar director: policy and ecosystem development, at Africa Forward.