ILO and African Union host webinar showcasing landmark research on Africa’s Social and Solidarity Economy
On September 19, 2024 the International Labour Organization (ILO) and the African Union (AU) hosted a joint webinar to present the preliminary findings and recommendations of their recent study on the Social and Solidarity Economy (SSE) in Africa based on results of mapping studies conducted in six African countries: the Democratic Republic of Congo (DRC), Egypt, Kenya, Madagascar, Nigeria, and Zambia.
24 September 2024
In August 2024, the AU adopted its 10-year Social and Solidarity Economy strategy and implementation plan, a significant step toward recognizing and promoting the SSE as a vital element of Africa’s sustainable development. Developed with support from the ILO, this strategy reflects global and regional efforts to harness the SSE as a vehicle for decent work and inclusive growth. For more information on these updates from the African region, see ILO/AU brief on recent SSE developments (available in Arabic, English, French, Portuguese).
The joint webinar brought together policymakers, social partners, SSE practitioners, and academics to discuss the featured presentation by Ms Kerryn Krige, Senior Lecturer at the Marshall Institute, with inputs from Mr Frederik Claeyé, Associate Professor at ICHEC Brussels Management School, who shared the preliminary findings from the synthesis report of the six-country studies. The report highlighted the diverse SSE landscape, spanning formal entities like cooperatives and social enterprises, and informal groups such as self-help organizations. The presentation identified common challenges and opportunities across the countries, underscoring the SSE’s role in creating decent work and supporting community resilience, despite limited understanding around it.
The information and data gathered from these ILO studies will support the African Union in advocating for and strengthening the Social and Solidarity Economy, ultimately enhancing livelihoods development at the community-level.
Mr. Sebelo Mbokazi, Head of Labour, Employment & Migration Division, African Union
| Commonalities: | Constraints: |
| Embedded in Local Communities: SSE entities are rooted in their communities, operating at a grassroots level. They play a crucial role in local economic development by leveraging social ties, trust, and community engagement. | Policy and Legal Barriers: A lack of coherent policy frameworks and legal recognition poses significant challenges. SSE entities often operate in a regulatory grey area, which limits their access to formal support, finance, and markets. |
| Diverse Forms of SSE Entities: The SSE encompasses a wide range of entities, including cooperatives, mutual societies, social enterprises, and informal groups, reflecting the adaptability of the SSE model across different contexts. | Financial Exclusion: Many SSE entities face difficulties accessing finance due to high interest rates, complex requirements, and a lack of suitable financial products. This financial exclusion hinders their growth and sustainability. |
| Inclusive and Participatory Governance: Many SSE entities adopt democratic and participatory governance structures, emphasizing member engagement in decision-making, which aligns with SSE values of cooperation and mutual aid. | Capacity and Skills Gaps: Limited access to capacity-building and technical assistance restricts the ability of SSE entities to scale their operations. Weak management skills and insufficient knowledge of market dynamics further exacerbate these challenges. |
| Focus on Social Impact: SSE entities prioritize social objectives over profit, contributing significantly to job creation, social protection, and the improvement of community well-being, especially for marginalized groups like women and youth. | Fragmented Data and Limited Awareness: The contributions of SSE entities are often underrecognized due to a lack of comprehensive data and limited visibility in national statistics. This gap affects policy formulation and reduces support for the SSE. |
| Market Access Challenges: SSE entities struggle with accessing broader markets due to inadequate marketing strategies, low technological adoption, and competition from larger, more established enterprises. |
Following this overview, Ms Ingy Mohamed Abdelhamid, Assistant Professor at the National Center for Social and Criminological Research, presented key findings from the study in Egypt, noting how SSE entities are contributing to local development, despite facing structural and financial challenges.
As we move forward, the ILO remains committed to supporting the African Union and its Member states in implementing the 10-year SSE strategy. By working together, we can ensure that the SSE continues to grow as a driver of decent work, social justice, and sustainable development.
Simel Esim, Head of COOP/SSE Unit, International Labour Organization
Spotlight on Egypt: Navigating Opportunities and Challenges for SSE Entities In Egypt, the SSE includes both formal and informal entities, such as cooperatives, social enterprises, and self-help groups, which are deeply embedded within their communities. Cooperatives are the most prominent SSE entities in the formal economy, benefiting from specific legal frameworks, tax exemptions, and government support. Informal self-help groups also play a significant role, often emerging as community-based solutions to local challenges. Despite these strengths, SSE entities in Egypt face significant challenges, including outdated legal frameworks, limited access to financial resources, and a lack of data and networking opportunities. High interest rates, stringent requirements, and a predominantly informal financial landscape further constrain these entities. Additionally, the sector struggles with low digital skills, aging leadership, and limited participation from women and youth. To address these issues, recommendations include establishing clear legal definitions of SSE, enhancing policy coherence, improving access to financial resources, and fostering collaboration among stakeholders. There is also a call for a national dialogue that involves diverse SSE entities to create a more inclusive policy environment that recognizes and supports the unique contributions of the SSE to Egypt’s sustainable development. |
The second half of the webinar involved engaging participants in a discussion on the SSE in the African context. The participants reflected on how the SSE can be further leveraged to promote decent work and sustainable development in the region. There were questions on learning tools and opportunities for further awareness raising. Simel Esim mentioned that an open, online package to raise awareness on the SSE was developed with ITC ILO Turin, with funding from the Luxembourg government, for the UNTFSSE. She noted that the tool offers a clear introduction to the fundamental concepts and practices of the SSE and demonstrates its pivotal role in promoting inclusive and sustainable development. The four modules of the tool are available in Arabic, English, French, Portuguese, Russian and Spanish, she added. The session concluded with reflections on actionable recommendations for strengthening SSE policy frameworks, fostering capacity-building initiatives, and enhancing cross-country collaboration. A French version of the webinar is also expected to be held in the coming weeks. This event marked an important step towards deeper cooperation between the ILO and the AU in promoting the SSE in Africa. The findings and recommendations will inform ongoing and future efforts to strengthen SSE entities, ensuring they contribute effectively to creating decent work and achieving sustainable development across the continent.
A video recording of the webinar can be found here.
See also
ILO and AU host second webinar showcasing landmark research on Africa’s Social and Solidarity Economy