This page is part of Circular Economy in Africa: Examples and Opportunities, a collection of insights exploring key questions on accelerating the circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. across the continent.
Finance and investment for scaling the circular economy in Africa.
The financial sector is a key enabler for the circular economy transition and the circular economy is also an opportunity for the financial sector, as it can create value for asset managers, banks, and other financial services firms and help to manage risk.
The circular finance opportunity
The circular economy offers a number of new investment opportunities for African countries. According to the United Nations Environment Programme (UNEP), the value of the potentially recoverable resources that are not currently being collected in Africa is estimated at USD 7.6 billion per year.
Realising the circular economy opportunities, however, will not only require investments in waste management to support keeping products and materials in use, but also in innovations and circular business models in the formal and informal sectors such as repairrepairOperation by which a faulty or broken product or component is returned back to a usable state to fulfil its intended use., reusereuseThe repeated use of a product or component for its intended purpose without significant modification., and sharingsharingThe use of a product by multiple users. It is a practice that retains the highest value of a product by extending its use period. models.
This article discusses the examples of finance measures for the circular economy in action. It also looks at shifting public and private funding towards circular investments, developing and adopting circular economy taxonomies, and creating a supportive policy environment (see our Policy article for more details on how policy can shape the circular economy transition).
Ellen MacArthur Foundation
ICLEI Africa
Chatham House
University of Lagos
