Youth unemployment is at an all-time high. Photo: Oupa Nkosi/M&G
As South Africa prepares to host the G20 Summit in November, the first on African soil, the stakes are high. This historic opportunity places the country and the continent at a crossroads, one that demands not just economic diplomacy, but bold rethinking of how we build inclusive, sustainable societies.
Amid rising inequality, youth unemployment and a climate crisis threatening livelihoods across the continent, a central question arises: “Can social innovators help shape the G20 towards more human-centred, inclusive economic models?” And will global leaders be willing to listen? If South Africa seizes this moment with intention, the answer is, “Yes.”
Social innovation — the use of creative, entrepreneurial strategies to address pressing social problems — has long been underestimated in formal policy spaces. It is time to mainstream the social economy into global development frameworks. This is especially critical for the Global South, where social entrepreneurs are already stepping into service and infrastructure gaps left by overstretched or ineffective states.
While often criticised for being more symbolic than solution-oriented, the G20 provides a platform for consensus-building on macroeconomic policy. Within that, there is the potential to elevate the role of social enterprise as a force for economic inclusion.
Social innovators are not fringe actors. They are builders of jobs, creators of local economies and drivers of community resilience. The challenge, however, is access to capital, policy influence and recognition.
Despite the G20’s various engagement tracks — including Civil Society 20, Business 20 and Youth 20 — grassroots voices too often get drowned out in a sea of technical jargon and elite diplomacy. The need, then, is not just for a seat at the table but for a rethinking of who gets to shape the agenda.
One opportunity is the “Social Summit”, which will be held in the lead-up to the G20 Leaders’ Summit, designed to explore community-based solutions and ground the macroeconomic discussions in lived realities. If done right, it could ensure that the perspectives of township entrepreneurs, informal traders and innovators operating on the margins are elevated to the global stage.
To do that, three key policy shifts are needed.
First, the formal recognition of the social and solidarity economy must be accelerated. South Africa has a draft green paper on this but it remains in limbo. Elevating this to a white paper — driven by the department of trade, industry and competition — would acknowledge social enterprises as legitimate economic actors, opening access to finance, procurement opportunities and support services.
Second, access to capital must go beyond rhetoric. Investment, blended finance and grant-based support can work in tandem to ensure that innovative ventures solving social problems don’t fall through the cracks. Funding must support, not just start-up phases, but also the growth of enterprises, allowing them to scale and hire more people. Private capital is essential at this point in time, since development funding from the US was stopped.
Third, skills development is essential. From school curricula and vocational training to integration in university curricula, young people need the tools to become creators of solutions, not just job seekers. The role of social innovators and entrepreneurs in equipping communities with these skills cannot be overstated.
This agenda aligns with the broader global pivot toward “business with purpose”. The idea that profit alone is no longer enough — companies must also consider people and the planet. While this might sound idealistic, the alternative is unsustainable. The planet is dying, inequality is rising and the American retreat from multilateralism threatens progress. We simply can’t afford business as usual.
Big businesses, too, must play their part — not merely through corporate social responsibility but by embedding impact into their business models and partnering with local innovators to extend their reach.
There are, of course, risks. The G20 could once again devolve into an echo chamber of promises with little follow-through. But this is where Africa has a unique chance to lead differently. By focusing on inclusion, sustainability and innovation, South Africa can offer a model of economic policy rooted not in trickle-down theory but in inclusive economic transformation.
The road ahead will not be easy. But the opportunity is real, not just to shape the G20, but to reshape our understanding of what drives meaningful economic development.
Social innovation and entrepreneurship is not a miracle cure. It is, however, a durable and necessary path forward. In a world searching for effective models, Africa’s innovators are ready to show the way — if we let them.
Dr Solange Rosa is the director of the Bertha Centre for Social Innovation at the University of Cape Town’s Graduate School of Business.