AfDB Backs Circular Economy for Africa’s Industrial Growth
The African Development Bank (AfDB) has positioned the circular economy as a key driver of Africa’s sustainable industrial growth, describing it as both an environmental imperative and a major economic opportunity during the seventh session of the United Nations Environment Assembly (UNEA-7).
The Assembly, held under the theme “Advancing sustainable solutions for a resilient planet”, brought together global leaders to address pressing environmental and development challenges.
Speaking during high-level engagements on the margins of UNEA-7, the Bank’s Vice President for Power, Energy, Climate and Green Growth, Dr Kevin Kariuki, said circular economy approaches could strengthen global value chains while supporting Africa’s clean energy and digital transitions.
“UNEA-7 comes at a decisive moment for our planet, and indeed for Africa,” Dr Kariuki said. “The Assembly offers an important opportunity to align science, policy and finance to build a more resilient and sustainable future.”
The AfDB’s stance featured prominently during Leadership Dialogue 2, titled “Round and Round: Why circularity and sustainability are critical to the future of global industry.”
Discussions highlighted Africa’s circular economy as an estimated US$546 billion annual opportunity, with the potential to create more than 11 million jobs by 2030. Priority sectors identified included construction, food systems, plastics, textiles, electronics and mining-related value chains.
With nearly half of global greenhouse gas emissions linked to material and resource use, participants examined how sustainable material management could accelerate clean energy and digital transitions while improving resilience across key industries.
The dialogue also underscored the need for scalable practices, strong policy frameworks and social safeguards to ensure that circular transitions protect livelihoods while addressing environmental challenges.
For African economies grappling with intensifying climate shocks, volatile supply chains and rising production costs, circular economy approaches were presented as offering practical benefits. These include reduced reliance on imported materials, increased local value addition and new investment opportunities in recycling, durability and local manufacturing.
“Circularity reduces exposure to global supply shocks by keeping materials in use locally,” Dr Kariuki said, adding that successful scale-up requires coherent, economy-wide policy frameworks supported by predictable regulation, aligned incentives and standards that promote durability, safe design and resource efficiency.
On the sidelines of the Assembly, Dr Kariuki held bilateral meetings to advance collaboration. Discussions with Finland’s Minister of Climate and the Environment, Sari Multala, focused on initiatives supported by the Africa Circular Economy Facility (ACEF), including the National Circular Economy Roadmap programme and the AfriCircular Programme.
Finland, together with the Nordic Development Fund and the Coca-Cola Foundation, is a founding partner of ACEF.
In a separate meeting with the newly appointed UNDP Administrator, Alexander De Croo, talks explored closer alignment on shared priorities, including renewable energy under Mission 300, technical assistance through the NDC Hub and NDC Partnership, and joint efforts to scale circular economy initiatives with measurable development impact.
