Changing African economies to circular models that are more sustainable

The effect.

The World Economic Forum is helping to accelerate Africa's transition to a circular economy, which will result in increased economic growth, jobs, and better environmental effects.

The African Circular Economy Alliance (ACEA) is a country-led platform that intends to lead advocacy efforts, conduct policy research, and promote high-impact circular-economy projects. It was conceived by the World Economic Forum and the Government of Rwanda in 2016 and inaugurated in 2017.

The ACEA, which is co-chaired by Rwanda's, Nigeria's, and South Africa's environment ministries and comprises ten member nations from throughout Africa, has created a multi-donor trust fund with an initial capital of €4 million. In nations that have joined the alliance, the Africa Circular Economy Support Programme (ACESP) will fund circular economy entrepreneurs and circular economy initiatives.

What really is the opportunity?

In a circular economy, instead of being thrown away, all resources are exploited to their full potential and reused indefinitely.

The economic potential of changing how resources are used is enormous. A tonne of cellphones, for example, contains 100 times more gold than a tonne of gold ore, yet many phones are not properly recycled, wasting precious resources. This global opportunity is worth $4.5 trillion, according to Accenture.

Africa is in a good position to benefit from this opportunity. According to the United Nations Population Fund (UNFPA), the continent has 200 million persons aged 15 to 24. If enough employment are generated, this figure is predicted to quadruple by 2045, creating a potential demographic dividend for rapid economic growth.

According to the US Environmental Protection Agency (US EPA), dumping old items in landfills creates six jobs, recycling creates 36 jobs, and reuse and repair creates up to 296 jobs for every 10,000 tonnes of used goods.

This is our strategy.

The ACEA was first conceived in 2016 at the World Economic Forum on Africa in partnership with the Rwandan Ministry of Environment. Rwanda has long been a pioneer in the circular economy, having been one of the first countries to outlaw plastic bags. South Africa and Nigeria joined the alliance as co-chairs during the 2017 World Economic Forum on Africa, and ACEA was created.

The Forum brought the parties together through its multistakeholder platform and continues to provide financial and in-kind support. The ACEA, on the other hand, is a country-led initiative that is totally administered by the co-chairs. The Forum, the African Development Bank, the Global Environment Facility (GEF), the UN Environment Programme (UNEP), the Government of Finland, and the Platform for Accelerating the Circular Economy are among the strategic partners, with financial support from the Danish and Finnish governments, as well as the Nordic Council.

The ACEA secretariat has already started looking at how circular economy ideas might help Africa achieve long-term economic growth, and the findings will be presented to all African environment ministers during the African Ministerial Conference on the Environment in 2021.

What are your options for getting involved?

One ACEA project involves a partnership between the Forum's Regional Action Group on Africa and the Africa Plastics Recycling Alliance, which comprises Diageo, Unilever, The Coca-Cola Company, and Nestlé. This partnership will encourage companies and policymakers to work together to develop a PET bottle-to-bottle recycling economy across the continent, which will cut waste while also creating jobs.

Consider contacting the ACEA using the link below if your organisation is conducting research on the circular economy in Africa, or if you have a high-impact project with ambitious growth ambitions. You may also learn how the World Economic Forum's Circular Economy Initiative brings together business, public, civil society, and professional parties to expedite the circular economy transition by clicking on the links below.