The absence of affordable, quality childcare is costing Sub-Saharan Africa dearly.
In 2022 alone, South Africa, Kenya, and Nigeria lost billions in potential income as millions of employable mothers were forced out of the workforce, according to new research from Economist Impact’s Childcare Dividend Initiative (CDI).
The study argues that childcare is not just a moral or social issue, it’s an economic one. The report highlights how the care economy remains an untapped engine of growth across the region, with the potential to drive productivity, gender equality, and national development.
“Access to affordable, quality childcare is not a luxury, it’s an economic necessity,” said Katherine Stewart, lead researcher at Economist Impact.
“Our research shows that childcare should be seen not as a cost, but as a strategic investment—one that drives productivity, strengthens economies, and promotes inclusive growth.”
The findings reveal that achieving universal childcare enrollment by 2030 could unleash millions of women into the labor market. Nigeria stands to gain the most, with an estimated 1.7 million mothers joining the workforce, a move that could add over 1 percent to the country’s GDP through higher household incomes and increased tax revenue.
To spotlight these opportunities, Economist Impact, supported by the William and Flora Hewlett Foundation, convened a high-level forum in Johannesburg alongside the G20 Women’s Economic Empowerment Working Group Ministerial Meeting. The gathering brought together policymakers, funders, and civil society leaders to discuss how investing in childcare can stimulate inclusive economic growth and advance gender equity across Africa.
Discussions at the forum drew lessons from successful reforms, including Kenya’s national care strategy. Speakers stressed the importance of collaboration across ministries, finance, health, education, and social development, to build sustainable and integrated childcare systems.
“Childcare can represent a significant financial burden for many families—but expanding affordable, quality care can also be one of the greatest engines for decent job creation,” said Jasmina Papa, social protection specialist at the International Labour Organisation (ILO). “Investing in the care economy is both an economic and social imperative. Care is a public good: we’ve all received it, and at some point, we will all provide it—whether for children, elders, or others in our communities.”
Experts also emphasized the importance of gender-responsive budgeting in ensuring that public funds effectively support care systems. “Gender-responsive budgeting gives us a clear way to see how money truly serves women and men—but gender tagging alone isn’t enough,” said Juhi Kasan, project lead for economies of care at South Africa’s Institute for Economic Justice.
“Applying this lens to health and education budgets is vital for making public spending more transparent, democratic, and equitable.”
Kasan added that prioritizing the care economy goes beyond economic numbers. “It’s not about using women as instruments of development,” she said, “but about placing the wellbeing of all—women, families, and communities—at the center of growth.”
Economist Impact’s Childcare Dividend Initiative makes a compelling case for governments to treat childcare as a cornerstone of economic planning. The report concludes that when childcare systems are strong, equitable, and affordable, “economies work better for everyone.”
To learn more about the initiative, visit Economist Impact
