By Job Okoth
A shortage of affordable childcare is costing Kenya, South Africa, and Nigeria billions in lost income as millions of mothers stay out of work, new research by Economist Impact has revealed.
The study, released during the G20 Summit in Johannesburg, South Africa, shows that the lack of accessible childcare services is holding back women’s participation in the workforce, limiting economic productivity, and slowing progress toward gender equality across Sub-Saharan Africa.
According to the Childcare Dividend Initiative (CDI) report, universal childcare enrollment by 2030 could enable millions of mothers to take up jobs across the three economies. Nigeria stands to gain the most, with up to 1.7 million mothers potentially joining the labor force, translating into a 1.09 percent boost to GDP through higher household incomes and tax revenues.
The study makes it clear that investing in childcare is not just a social issue but an economic strategy that can transform national development outcomes.
Katherine Stewart, the lead researcher of the CDI at Economist Impact, said access to affordable, quality childcare is not a luxury but an economic necessity. She explained that childcare should be seen not as a cost but as a strategic investment—one that drives productivity, strengthens economies, and promotes inclusive growth.
Stewart added that when governments prioritize care, they enable more parents, especially women, to work, which in turn expands tax bases and stimulates overall economic activity.
The findings come at a time when the care economy—covering childcare, elder care, and other care-related services—remains one of the most overlooked yet promising sectors for economic expansion. In many African countries, women carry the burden of unpaid care work, often spending long hours caring for children and relatives, leaving them with little or no opportunity to join the formal workforce.
Economist Impact’s research calls on governments to start treating childcare as vital infrastructure, on par with roads or electricity, because it underpins productivity and social stability.
To highlight the importance of this issue, Economist Impact, with support from the William and Flora Hewlett Foundation, hosted a high-level forum on the sidelines of the G20 Women’s Economic Empowerment Working Group Ministerial Meeting in Johannesburg. The forum brought together policymakers, funders, care providers, and civil society organizations to discuss how investing in childcare can fuel economic growth, advance gender equality, and support early childhood development.
During the event, participants shared lessons from successful reforms such as Kenya’s national care strategy, which integrates childcare and early education within national planning and budgeting frameworks.
They emphasized that coordinated action across ministries—particularly finance, health, education, and social protection—is essential for building sustainable care systems that benefit both families and the economy.
According to Jasmina Papa, a social protection specialist at the International Labour Organisation (ILO), childcare can represent a significant financial burden for many families, but expanding affordable and quality care can also be one of the greatest engines for decent job creation.
She described investing in the care economy as both an economic and social imperative, adding that care is a public good that everyone benefits from at some point in life—either as recipients or providers.
The CDI report also points out that investing in childcare generates a double benefit: it supports working parents while creating new jobs within the care sector itself. Expanding childcare services requires trained caregivers, teachers, and support staff, which in turn provides employment opportunities for thousands of women. Beyond economic impact, these services improve child development outcomes, helping children build stronger foundations for future learning and growth.
Experts at the forum called on governments to integrate the care economy into national development plans and fiscal frameworks. While several African countries are strengthening childcare and early education policies, issues of affordability and quality continue to hinder progress, particularly in rural and low-income areas.
According to Juhi Kasan, the project lead for economies of care at the Institute for Economic Justice in South Africa, gender-responsive budgeting provides a clear way to see how money serves both women and men. However, she warned that gender tagging alone is not enough. Kasan said applying a gender lens to health and education budgets is vital for making public spending more transparent, democratic, and equitable.
She further explained that prioritizing the care economy does not mean using women as tools of development, but rather placing the wellbeing of all at the center—women, the communities they serve, the families they raise, and the societies they help build. Her remarks echoed a growing recognition across the continent that the care economy is not a side issue but a foundation for inclusive and sustainable development.
Kenya’s national care strategy, which was praised at the event, reflects this shift in thinking. By coordinating efforts across different ministries and levels of government, Kenya aims to build an integrated system that supports both caregivers and children. The approach recognizes that when women are freed from excessive unpaid care work, they can participate more effectively in economic activities, leading to stronger families and more resilient communities.
As the G20 Summit concluded, experts urged governments to act on the evidence. With women’s labor participation rates stagnating across many African economies, the care economy offers a clear and proven opportunity to unlock growth. One participant at the forum noted that governments need to stop treating childcare as an afterthought, emphasizing that it is the foundation of a functioning economy. When strong care systems are in place, parents can work, children can thrive, and societies can prosper.
Economist Impact’s CDI ultimately makes the case that investing in affordable, high-quality childcare is not about charity or social goodwill—it’s about smart economics. When care systems are strong, economies work better for everyone.
