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Africa’s Circular Economy Gains Traction as Innovation Meets Opportunity

African innovators are turning waste into wealth as the continent accelerates its shift towards a circular economy, creating jobs and driving sustainable growth.

Behailu Seboka, 30, founder of Askema Engineering on the outskirts of Addis Ababa, transforms discarded slaughterhouse materials into brake pads. What began as a university project now employs 268 people and serves 6,400 customers nationwide. “With the right support, we can prove that the circular economy is not only good for the environment but also for business,” Seboka said.

Askema Engineering was among the exhibitors at the 2025 Annual Meeting of the African Circular Economy Alliance (ACEA), which convened from 14 to 16 October in Addis Ababa. The meeting brought together representatives from 21 African countries and 19 partner institutions, including the African Union, African Development Bank, European Union, UNDP, and UNEP, to explore how circular economy initiatives can be scaled across the continent.

Examples of innovation abound: in Madagascar, recycled polyethene sachets are converted into durable threads for handbags, while in Burkina Faso, plastic waste is transformed into paving stones, school desks, and public space equipment.

The circular economy is not only an environmental imperative but a major economic opportunity. With over 10 million young Africans entering the job market annually, and only 3.1 million jobs created, circular initiatives could generate up to 11 million new jobs by 2030, tapping into the global circular economy market, estimated at US$546 billion.

Attendees emphasised harmonising standards, financing, and industrial policies to strengthen Africa’s circular economy ecosystem. Initiatives such as the African Circular Economy Fund (ACEF) and the African Union’s Continental Circular Economy Action Plan (CEAP) are already making tangible impact, aligned with the AU’s Agenda 2063.

“I congratulate the African Circular Economy Alliance and the African Development Bank for their determined commitment to circular economy principles,” said Finland’s Ambassador to Ethiopia, Sinikka Antila. “The increasing number of ACEA members reflects growing confidence in this shared vision.”

Nathaniel Oluoch Agola, Acting Country Director of the African Development Bank in Ethiopia, highlighted that the circular economy complements the Bank Group’s “Four Cardinal Points” agenda, linking resource transformation, youth empowerment, financial access, and resilient infrastructure into a single framework for sustainable development.

The 2025 ACEA Annual Meeting highlighted that Africa’s circular economy is no longer a concept but a tangible pathway for industrial innovation, job creation, and sustainable prosperity across the continent.

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