The concept of a global circular economy is rapidly gaining traction as a sustainable alternative to the traditional linear economic model. By focusing on reusing, recycling, and reducing waste, the mandate drives both environmental sustainability and economic resilience. However, in an African context, circular economies could be a ‘two way’ street. According to a recent analysis by the Brookings Institute, while the circular economy offers substantial benefits and it can elsewhere, it’s not without certain challenges being posed too.

Valuable opportunities for economic growth, FX import substitution and higher margin industrial activities located on the continent, rather than off it, are all very real, deliverable benefits. By investing in recycling industries and sustainable practices, African nations could create new jobs and boost local economies. Additionally, circular models could help address pressing environment issues such as waste management and resource scarcity, which have been priority items for aid agencies and governments across the continent. For instance, the development of local recycling facilities could reduce dependency on imported raw materials, thereby enhancing economic self-sufficiency and reduce the reliance on the USD treasury reserves.

Conversely, the transition to a circular economy may also expose certain African economies to potential risks. The shift could exacerbate existing inequalities if the benefits are not equitably distributed. Furthermore, the initial investment required to develop circular infrastructure might be challenging for some public purses, which often grapple with limited resources. There is also the valid concern that global companies could exploit Africa's resources under the guise of circularity, without delivering meaningful economic benefits to local communities. Second hand clothing mountains attest to such possibilities.

We have a significant footprint in Africa, with projects that seek to validate the benefits of circular economy models – that can benefit our team, local stakeholders and regional economies more broadly. Engagement is key, working closely with government agencies whose remit is to promote FDI, not to mention providing the highest standards of working environments. By developing circular economy projects in Africa, there can be significant value creation, not to mention export industries developed. Market forces, when allowed to operate without distortion, buttressed by appropriate regulatory and legal frameworks, will be central to ensuring equitable outcomes.