African Union unanimously adopts 10-year strategy to boost social and solidarity economy

The 55 African Union member states unanimously adopted the continent’s first social and solidarity economy strategy, at a meeting of ministers of labour last month in Addis Ababa, Ethiopia.

The 10-year plan, which was first validated by governments, workers’ and employers’ representative bodies and social economy organisations in 2022, aims to create “an enabling and supportive environment for the [social and solidarity economy] that contributes to a more equitable, inclusive and sustainable development path for the African continent.” It has been praised for acknowledging that most social enterprises and other similar organisations in Africa are part of the informal economy.

Speaking at the meeting, the International Labour Organization’s regional director for Africa, Fanfan Rwanyindo Kayirangwa, congratulated the ministers for recognising the potential of the social and solidarity economy for enhancing decent work and social justice. She also highlighted that this was the second regional strategy on the social economy in the world to be adopted, following the EU Social Economy Action Plan in 2021.

Traditions of sharing, trust, mutual aid and collective work are rooted in social and cultural structures across Africa

The strategy defines the social and solidarity organisations as entities aiming to create positive social, environmental or cultural impact, with a democratic governance and limited or no distribution of profits. 

Such organisations may take many forms, such as cooperatives, associations, mutual societies, foundations, social enterprises, community-based organisations and self-help groups, and include informal, unregistered organisations.

“In a context where traditions of sharing, trust, mutual aid and collective work are rooted in social and cultural structures across Africa, it can be argued that the [social and solidarity economy] constitutes the inclusive economy of Africa in the modern era,” says the strategy document.

The plan seeks to raise awareness of the social and solidarity economy and create a legal and administrative framework for it, notably to support informal organisations, such as self-help groups, that form a large part of the social economy. It also aims to boost the sector’s growth by removing barriers to access finance and markets, for example, through social procurement initiatives.

The strategy was developed by the African Union together with the International Labour Organization, a UN agency dedicated to promoting social justice and human and labour rights.

Informal economy

The African Union’s strategy paper highlights the importance of the social economy on the African continent. According to the International Organisation of Industrial and Service Cooperatives, for example, there are 400 000 co-operatives in Africa, serving over 50m members. Additionally, between 28m and 41m jobs have been created directly by social enterprises in Sub-Saharan Africa, according to British Council data.

The strategy was praised for recognising that many social economy organisations on the continent are informal. Speaking at the Social Enterprise World Forum last year, South African Kerryn Krige, senior lecturer at the London School of Economics, said: “The informal economy is where the majority of social entrepreneurship happens. 

“As policymakers, acknowledging this is transformational… It’s a profound shift in our thinking. The strategy really does deserve a pat on the back.” 

• Read more: New African strategy praised for recognising significance of social enterprises in informal economy

Global momentum

The African Union’s strategy follows recent initiatives at international level to foster the growth of the sector. In 2021, the European Union launched its Social Economy Action Plan, a set of measures to promote the social economy in the bloc until 2030, which social economy advocates hailed as “radical” and “passionate”.

Last year, the UN adopted a resolution on the social and solidarity economy to encourage member states and financial institutions to promote and support the work of social enterprises, cooperatives and others to achieve sustainable development.

• Read more: The UN has adopted a resolution on the social and solidarity economy. Here's why it matters

The strategy paper is not currently available online but the ILO has issued a detailed summary available here.

Top image: a market in Uganda. Credit: Anna Patton for Pioneers Post.

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