Childcare Costs Billions in Lost GDP for Nigeria, Kenya & South Africa

A lack of affordable, quality childcare cost the economies of South Africa, Kenya, and Nigeria billions in lost income in 2022, according to a research that frames investment in the care economy as an economic imperative.

The three Sub-Saharan economies lost income because millions of employable mothers were unable to participate in the workforce, data from Economist Impact’s Childcare Dividend Initiative (CDI) reveals. The finding positions the care economy as a key, untapped driver for inclusive economic growth as the G20 meeting concludes in Johannesburg.

Economist Impact projects that implementing universal childcare enrollment by 2030 could enable millions of mothers to enter the labor force across the three countries. Nigeria stands to gain the most, with up to 1.7 million mothers potentially joining the workforce, which could boost GDP by 1.09% through higher household incomes and tax revenues.

“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.”

Economic Imperative at G20

While several African nations, including South Africa, Nigeria, and Kenya, are strengthening early education policies, issues of affordability and quality continue to slow progress. The care economy remains a key but untapped engine for growth, with the potential to boost employment, productivity, and gender equality across Sub-Saharan Africa.

To highlight this potential, Economist Impact, supported by the William and Flora Hewlett Foundation, hosted a forum on the sidelines of the G20 Women’s Economic Empowerment Working Group (WEEWG) Ministerial Meeting in Johannesburg. The event convened policymakers, funders, and care providers to explore how strategic investment in childcare can fuel inclusive growth, align with G20 priorities, and advance gender equality.

Speakers underscored the need for cross-ministerial collaboration—spanning finance, health, and education—to build integrated, sustainable care systems.

Jasmina Papa, a social protection specialist at the International Labour Organisation (ILO), stressed that expanding affordable, quality care could be one of the greatest engines for creating decent jobs. “Investing in the care economy is both an economic and social imperative. Care is a public good,” Papa said.

Integrating Care into Fiscal Policy

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

Juhi Kasan, project lead for economies of care at the Institute for Economic Justice in South Africa, suggested that “gender-responsive budgeting” offers a clear way to track how money serves women and men.

“Applying this lens to health and education budgets is vital for making public spending more transparent, democratic, and equitable,” Kasan said, adding that prioritizing the care economy ultimately brings the wellbeing of all—women, families, and societies—to the forefront.

Economist Impact’s CDI concludes that when strong care systems are in place, economies work better for everyone, making the investment a clear-cut financial decision for governments seeking sustainable growth.