G20 Summit Spotlights Childcare As Economic Engine For Inclusive Growth
By Damilola Fajinmi
At the just concluded G20 Summit in Johannesburg. New research has drawn attention to the care economy as a crucial yet undervalued driver of inclusive economic growth across Sub-Saharan Africa.
Findings from Economist Impact’s Childcare Dividend Initiative (CDI) reveal that limited access to affordable, quality childcare cost the economies of South Africa, Kenya, and Nigeria billions in lost income in 2022.
Newsarena.ng reports that, millions of employable mothers were unable to participate in the workforce, leading researchers to argue that childcare investment is not just a social good but an economic necessity.
“Access to affordable, quality childcare is not a luxury it’s an economic necessity,” said Katherine Stewart, lead researcher at Economist Impact.
The study estimates that achieving universal childcare enrollment by 2030 could enable millions of mothers across the three countries to enter the labor force.
Nigeria could see the most significant gains, with up to 1.7 million additional working mothers, translating to a potential 1.09% increase in GDP through higher household incomes and tax revenues.
To highlight the findings, Economist Impact, supported by the William and Flora Hewlett Foundation, hosted a high-level forum alongside the G20 Women’s Economic Empowerment Working Group (WEEWG) Ministerial Meeting.
The event brought together policymakers, funders, care providers, and civil society leaders to discuss how strategic investment in childcare can advance gender equality, promote child development, and strengthen national economies.
Speakers cited successful models such as Kenya’s national care strategy and emphasized the need for collaboration across ministries finance, health, education, and social development to build sustainable, integrated 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.”
Experts also urged governments to embed the care economy into national development and fiscal policies.
“Gender responsive budgeting gives us a clear way to see how money truly serves women and men but gender tagging alone isn’t enough,” noted Juhi Kasan, project lead for economies of care at the Institute for Economic Justice in South Africa.
The Childcare Dividend Initiative emphasises that when care systems are strong, economies work better for all.
