The Care Economy Takes Centre Stage as a Key Driver of Inclusive Economic Growth at the G20 Summit

A lack of access to affordable, quality childcare cost the economies of South Africa, Kenya, and Nigeria billions in lost income in 2022, as millions of employable mothers were unable to participate in the workforce, according to research from Economist Impact’s childcare dividend initiative (CDI), which reveals that investing in childcare is not just a social good—but an economic imperative.

Across Sub-Saharan Africa, the care economy remains an untapped engine for growth, with the potential to boost employment, productivity, and gender equality. While several countries—including South Africa, Nigeria, and Kenya—are strengthening childcare and early education policies, issues of affordability and quality continue to hinder progress.

“Access to affordable, quality childcare is not a luxury—it’s an economic necessity,” said 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.”

The research finds that universal childcare enrollment by 2030 could enable millions of mothers to enter the labour force across the three Sub-Saharan economies studied. Nigeria stands to gain the most, with up to 1.7 million mothers potentially joining the workforce—equivalent to a 1.09% boost to GDP through higher household incomes and tax revenues.

To highlight the transformative potential of the care economy, Economist Impact, supported by the William and Flora Hewlett Foundation, hosted a high-level forum on the sidelines of the G20 Women’s Economic Empowerment Working Group (WEEWG) Ministerial Meeting in Johannesburg.

The event convened policymakers, funders, care providers, and civil society to explore how strategic investment in childcare can fuel inclusive growth, advance gender equality, and support child development—aligning with key priorities of the G20 agenda.

Speakers shared lessons from successful reforms, such as Kenya’s national care strategy, and underscored the need for cross-ministerial collaboration—spanning finance, health, education, and social development—to build integrated, sustainable care 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.”

As the G20 Summit draws to a close, experts are calling on governments to integrate the care economy into national development and fiscal frameworks.

“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 the Institute for Economic Justice in South Africa. “Applying this lens to health and education budgets is vital for making public spending more transparent, democratic, and equitable.”

“Prioritizing the care economy does not mean using women as instruments of development, but rather bringing the wellbeing of all to the forefront: women, the communities they service, the families they raise, and the societies they help build,” Kasan continued.

Economist Impact’s Childcare dividend initiative makes the economic case for investing in childcare systems that are affordable, high-quality, and inclusive—underscoring that when strong care systems are in place, economies work better for everyone.