Accra, Ghana//-Current trends in global resource extraction and the rapid pace of consumption growth are incompatible with internationally agreed sustainability targets.
Between 2015 and 2017, globally extracted resources increased from 84 billion to 92 billion metric tonnes, while the total amount of waste generated grew from 19 billion to 32 billion metric tonnes.
Furthermore, the global economy is reaching a critical resource constraint as more resources are extracted from the planet. This is particularly pertinent for the African continent due to the large number of extractivereliant economies.
The usual way of working – the making, using and disposing of resources, known as the “linear economy” – has only served to heighten these concerns and has proven to be unsustainable.
The circular economy (CE) – an economy in which products and materials are recycled, repaired and reused rather than disposed of – is fast gaining traction as a new model for sustainable growth.
With the right enabling environment, the CE offers a promising opportunity for economic development, value creation and skills development.
And with the COVID-19 pandemic forcing countries across the globe to restructure their economies, Africa is in a strong position to take advantage of these emerging opportunities.
The CE concept is gaining traction as a new model for resilient growth globally. The CE offers a promising alternative strategy for industrial development and job creation to the traditional manufacturing-led growth pathway.
In informal economies, which employ an estimated 61% of all workers globally,7 sectors such as e-waste and phone repairs, for example, could engage in higher-value CE supply chains, aiding a shift to formalization.
In developing countries, where large numbers of young people are entering the labour market each year, ensuring adequate employment opportunities will be vital to encouraging economic growth.
In Africa, this shift towards CE is increasingly being driven by the private sector – from waste processors in South Africa to a digital solution that supports informal refuse collectors in Nigeria.
A greater emphasis on promoting circularity in international value chains and investment activities is required to enable global sustainable growth.
To support the transition to CE, national governments should identify priority sectors for reform in support of CE activities, while investors should develop finance mechanisms to support and de-risk investment in CE value chains.
Furthermore, activities associated with linear resource extraction and processing often attract the bulk of financing in lower-income countries.
Between 2008 and 2015, multilateral development banks provided more than $83 billion in public financing to fossil fuels alone.
Weak regulation in certain sectors is leading to substandard results from investments in the CE. For instance, weak e-waste regulation in some countries on the continent has resulted in workers being exposed to hazardous substances in the recycling of copper wire (once the insulation is burned off), negatively affecting their health.
The success of the CE in Africa will be critical to global efforts to ensure sustainable growth. Africa is the only region in the world where the youth population (up to 24 years old) is increasing and is expected to rise to 51% of the total population by 2050.
As a result, a young and fast-growing middle class will inevitably want a higher standard of living, leading to greater consumption.
However, there are positive signs of economies attempting to accommodate this growth through more circular activities, with some of the most ambitious CE-related policy-making occurring in middle- and lower income African countries.
For example, Rwanda and Kenya have imposed total bans on plastic bags to stem growing waste crises.
Furthermore, through capturing the value of materials previously lost to the economy, the CE is expected to drive job creation and economic growth. For example, an e-waste recycling facility opened in 2017 in Rwanda created 400 green jobs, while a similar facility in Kenya established in 2013 created 2,000 green jobs in its first four years of operation.
Restructuring economies to become more circular will require additional efforts, with changes to industrial processes and government priorities being the most crucial.
On the value the circular economy could unlock
Speaking at the launch of the report Five Big Bets for the Circular Economy in Africa: African Circular Economy Alliance, James Mwangi, Executive Director, Dalberg Group hinted: “Over $3.2 billion is estimated as the value that could be unlocked from raw materials in domestically generated e-waste on the continent alone.
So $3.2 billion of value sitting in our landfills and our disposal of electronic waste, purely from what we generate on the continent.”
Dr Mohammad Mahmood Abubakar, Minister of Environment, Nigeria and Co-chair of the African Circular Economy Alliance (ACEA), on the chance to maximize resources and minimize waste said: “Nigeria refuses to be a mere bystander in a system that can provide economic sustainability, not just for the country, but for the continent and all at large.”
For Minister Jeanne d’Arc Mujawamariya, Rwanda Ministry of Environment: The 5 big bets “present a vast potential for job creation and economic growth.”
While Douglas Brew, Head of External Affairs, Communications and Sustainability, Unilever Africa noted: “There is a tremendous opportunity for the African continent to now step into a different way of doing business that suits it better, that supports the local economies and that creates a sustainable future.”
On what’s needed to make these ‘5 big bets’ pay off
James Mwangi, Executive Director, Dalberg Group added: “To take advantage of these opportunities will require enablers, including a supportive and harmonized policy environment and set of actions, and business development services to support and scale circular economy businesses. We will also need data and information to support improved decision-making.”
Douglas Brew, Head of External Affairs, Communications and Sustainability, Unilever Africa noted: “It’s the mainstream African consumer who’s going to drive the continent forward. [The circular economy] very much needs to be driven by people on the ground rather than following a model imported from elsewhere.”
Watch the full session: African Circular Economy Alliance Annual Meeting
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