Africa’s economic future may depend on a circular economy, with experts highlighting its potential to foster sustainable industrial growth while reducing dependence on imported raw materials and unstable supply chains.
The African Development Bank (AfDB) has positioned circularity as a cornerstone of the continent’s development strategy, calling it both an environmental necessity and a major industrial opportunity.
The sector is poised to generate $546 billion (Sh70.4 trillion) in annual opportunities for Africa by 2030, creating more than 11 million jobs, the financial institution said.
Key sectors identified include construction, food systems, plastics, textiles, electronics and mining-related value chains, where circular practices can reduce emissions while creating economic value.
“Circularity reduces exposure to global supply shocks by keeping the use of materials local,” said Kevin Kariuki, AfDB vice president for power, energy, climate and green growth.
Economy-wide policy
He emphasizes that scaling up circular practices requires consistent economy-wide policies supported by predictable regulations, aligned incentives, and standards that promote durability, safe design, and resource efficiency.
With almost half of the world’s greenhouse gas emissions linked to materials and resource use, a circular approach is increasingly seen as essential to Africa’s clean energy and digital transition.
Experts say that by redesigning production and consumption cycles, countries can strengthen local industries, increase domestic value addition and build resilience to climate and market shocks.
However, they caution that the transition must be socially inclusive. A recent International Labor Organization (ILO) report found that more than half of circular economy workers (more than 74 million people worldwide) remain in informal employment, of which around 10.3 million are in Africa.
informal risk
The ILO warns that without deliberate social protection measures, informality will continue to undermine security, profits and productivity.
The group is calling on governments to build circularity into public procurement, strengthen labor protections and direct investment to high-potential sectors such as manufacturing and construction.
Education and training systems must also adapt to equip young people, women and informal workers with the skills they need to take advantage of new opportunities.
Nevertheless, the ILO maintains that circular economy models offer practical benefits to African economies facing intensifying climate change and rising input costs.
By focusing on durability, recycling, and local production, countries can reduce dependence on imports, attract new investment, and build resilient industrial systems that can withstand both environmental and economic disruption.
