"With over 62% of African countries relying on natural resources for their GDP, the circular economy is crucial for the continent's growth. Strategic investments and innovative policies can unlock a 2.2% increase in GDP for Africa, generate 11 million jobs and access a global circular economy worth USD 526 billion," said Dr. Anthony Nyong, Director of the Department for Climate Change and Green Growth at the African Development Bank (AfDB).
Dr. Nyong was speaking in Nairobi on Friday on behalf of Kevin Kariuki, the AfDB Group Vice-President for Energy, Climate Change and Green Growth, at a panel discussion on the theme: "Transforming African Economies through Circular Solutions - The Case of the Africa Circular Economy Facility". Organised by the AfDB's Climate Change and Green Growth Department through the Africa Circular Economy Facility (ACEF), the panel was held on the sidelines of the Bank's 2024 Annual Meetings held in the Kenyan capital from 27 to 31 May.
The event highlighted approaches to stimulating African economies through circular solutions, with each panelist contributing their view on advancing the circular economy across the continent. As it promises to unlock multi-billion-dollar economic potential and help Africa respond to the challenges of the triple global crisis, the circular economy is crucial for sustainable development in Africa, the panel agreed.
"We need to change policies and legislation and to raise awareness of the circular economy in Africa. Finland invites countries and donors to join us in supporting this transition through the Africa Circular Economy Facility," said Finland's Ambassador to Kenya, H.E. Pirkka Tapiola.
Nordic Development Fund Managing Director Satu Santala, said: "Providing opportunities for young people is crucial and I am proud to see the positive impact which the Africa Circular Economy Facility is having in this area."
Admassu Tadesse, CEO and Managing Director of the Trade and Development Bank, highlighted the potential for collaborative initiatives, including projects to recycle batteries and clean cooking fuels.
"The urgency created by the triple global crisis makes collaboration essential. With the Africa Circular Economy Facility and the African Circular Economy Alliance, we are making significant progress in this sense,"said Fatou Ndoye, Deputy Regional Director of the United Nations Environment Programme in Africa.
Director of the AfDB's Water and Sanitation Department, Osward Chanda, highlighted the importance of integrating the circular economy into the Bank's various operations: "There are many opportunities to integrate circular approaches into the Bank's water and sanitation projects and such integration is of fundamental importance," he said.
The ACEF aims to expand to transform African economies by integrating circularity into national policies, into a forthcoming review of nationally determined contributions, and into the Bank's portfolio and existing trust funds. ACEF also plans to further empower the private sector through innovation and scalable solutions while strengthening the Africa Circular Economy Alliance to support a just and robust transition.
The ACEF initiatives enable systemic transformation at all levels, optimising resource efficiency, supporting innovation and creating sustainable employment opportunities that can help African economies and position Africa as a global leader in sustainable development.
About the Africa Circular Economy Facility
Established in 2022 by the African Development Bank, the Africa Circular Economy Facility (ACEF) is the only trust fund dedicated to mainstreaming the circular economy as an inclusive green growth strategy in Africa. It takes a three-pronged approach to accelerate Africa's transition to the circular economy: building institutional capacity; energising the private sector and providing advocacy for integration of the circular economy into Africa's development.
The ACEF has helped Uganda, Benin, Chad, Cameroon, and Ethiopia to design circular economy roadmaps and build government capacity. It has also supported a pilot group of 30 circular economy startups in Côte d'Ivoire, Rwanda and Ghana.
It strengthens the African Circular Economy Alliance, a platform for African governments to integrate circular approaches into their economic development. The ACEA Secretariat is hosted by the Climate Change and Green Growth Department of the African Development Bank.
