Circular Economy Seen as $546 Billion Opportunity in Africa

The African Development Bank (AfDB) emphasized the potential of circularity to strengthen global value chains and accelerate clean energy and digital transitions during high-level engagements at the United Nations Environment Assembly (UNEA-7). The assembly is viewed as a crucial moment for the planet and Africa, offering a chance to better align science, policy, and finance for a sustainable future.

Africa’s Circular Economy Opportunity

Discussions at Leadership Dialogue 2, “Round and round: Why circularity and sustainability are critical to the future of global industry,” highlighted Africa’s circular economy as a potential $546 billion annual opportunity. This could lead to the creation of more than 11 million jobs by 2030. Priority sectors identified include construction, food systems, plastics, textiles, electronics, and mining-related value chains.

Sustainable Material Management and Resilience

Participants examined how sustainable material management can support clean energy and digital transitions while strengthening resilience across critical industries, given that nearly 50% of global greenhouse gas emissions are linked to materials and resource use. The dialogue also emphasized the need for scalable practices, robust policy frameworks, and social safeguards to protect livelihoods and address environmental pressures.

Benefits for African Economies

Circular approaches were presented as offering tangible benefits for African economies facing climate shocks, volatile supply chains, and rising input costs. These benefits include reduced dependence on imported materials, increased value addition within domestic and regional markets, and new investment opportunities in industries focused on durability, recycling, and local production.

Policy Frameworks and Local Material Use

According to Dr. Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth, keeping materials in use locally can reduce exposure to global supply shocks. Scaling up circularity requires coherent, economy-wide policy frameworks supported by predictable regulation, aligned incentives, and standards that promote durability, safe design, and resource efficiency.

Partnership Discussions

On the sidelines of the Assembly, Kariuki engaged in bilateral meetings to deepen partnerships. Discussions with Finland’s Minister of Climate and the Environment, Sari Multala, centered on initiatives supported by the Africa Circular Economy Facility, including the National Circular Economy Roadmap programme and the AfriCircular Programme. Finland, along with the Nordic Development Fund and the Coca-Cola Foundation, is a founding partner of the facility.

Collaboration with the UN Development Programme

In a separate engagement with UN Development Programme Administrator Alexander De Croo, talks explored closer collaboration on renewable energy under Mission 300, technical assistance through the Nationally Determined Contributions (NDC) Hub and NDC Partnership, and joint work on the circular economy to deliver measurable development impact across the continent.