By Benadeta Mwaura - Reporter
South Africa, 6 November 2025 - Economist Impact report reveals Kenya, Nigeria, and South Africa lost billions in 2022 due to poor childcare access. Investing in care drives growth.
At the close of the G20 meetings in Johannesburg last week, a new study by Economist Impact laid bare a costly truth, limited access to affordable, quality childcare is draining billions from African economies every year.
The Childcare Dividend Initiative (CDI) reveals that in 2022 alone, South Africa, Kenya, and Nigeria collectively lost billions in potential income as millions of employable mothers were kept out of the workforce by inadequate childcare systems.
The research, supported by the William and Flora Hewlett Foundation, reframes childcare not merely as a social issue, but as an economic engine, one capable of boosting employment, productivity, and gender equality across Sub-Saharan Africa.
“Access to affordable, quality childcare is not a luxury, it’s an economic necessity,” noted Katherine Stewart, lead researcher of the CDI 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.”
Missed potential and economic costs
According to the study, universal childcare enrollment by 2030 could enable millions of mothers to enter or return to the labour market.
Nigeria stands to benefit most, with an estimated 1.7 million mothers potentially joining the workforce, an increase equivalent to a 1.09 percent GDP boost through higher household incomes and tax revenues.
For Kenya and South Africa, where urbanisation and dual-income households are on the rise, the ripple effects could be transformative, elevating entire communities and narrowing gender income gaps.
Despite gradual policy improvements in early childhood care and education, affordability and quality remain stubborn barriers. The report positions childcare as an integral part of fiscal and labour planning, calling on African governments to mainstream care systems within national development frameworks.
From social burden to growth engine
At a high-level forum hosted by Economist Impact alongside the G20 Women’s Economic Empowerment Working Group (WEEWG) Ministerial Meeting, experts from government, civil society, and development organisations echoed one message: care is a public good.
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“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.”
The event also spotlighted Kenya’s national care strategy, cited as a regional model for policy coherence and multisectoral collaboration.
Experts emphasised that building resilient care systems requires ministries of finance, health, education, and social development to work in concert, aligning budgets and priorities toward inclusive growth.
Rethinking budgets through a gender lens
As the G20 Summit drew to a close, the conversation turned to fiscal equity and accountability.
“Gender-responsive budgeting gives us a clear way to see how money truly serves women and men, but gender tagging alone isn’t enough,” explained 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 prioritising the care economy “does not mean using women as instruments of development, but rather bringing the wellbeing of all to the forefront, the women who provide care, the communities they serve, the families they raise, and the societies they help build.”
Beyond empathy, toward inclusive growth
The Childcare Dividend Initiative closes with a call to action: investing in childcare is a catalyst for inclusive economic recovery. When care systems are strong, economies function better for everyone, from the mothers who work, to the children who learn, to the societies that thrive on equality and productivity.
For policymakers, the message is simple yet profound: a nation that cares, grows.
Inadequate Childcare Systems Keep Employable Mothers Out of Work - Report
The Untapped Power of Care: Africa’s Economies Lose Billions as Mothers Stay Home