The African Development Bank (AfDB) will continue to empower African countries to harness the transformative potential of circular economy to generate youth employment and ecological benefits through efficient resource use.
The Bank stated this recently at the ongoing United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, where Multilateral Development Banks (MDBs) presented their first joint report on the circular economy, titled “The circular economy in motion.”
At the presentation, the AfDB stated its commitment to continue to empower African countries to harness the numerous opportunities of the transition to circularity.
“The AfDB acknowledges the transformative potential of circular economy to generate youth employment and ecological benefits through regenerative practices and efficient resource use. Through the Africa Circular Economy Facility (ACEF), the Bank is committed to continue to empower African countries to harness the numerous opportunities of the transition to circularity,” said Dr. Anthony Nyong, AfDB’s Director for Climate Change and Green Growth.
The report showcases 20 detailed global projects across diverse sectors, ranging from waste management and food to the construction sector, plastics, textiles, battery recycling, and the recovery of critical raw materials. The case studies provide a snapshot of the MDBs’ commitment to the circular economy through advisory services, financial support to governments, private-sector investments, and targeted backing for the financial sector.
It also provides six key insights into the following areas: inclusivity, global reach, comprehensive support, private sector potential, urban innovation and the role of the financial sector.
For instance, the report notes that circular economy investments are advancing worldwide, including in middle- and low-income countries, though policy frameworks remain uneven.
It also adds that in terms of private sector potential, businesses are increasingly engaging in circularity, but a more conducive regulatory framework is needed to unlock their full potential, while cities serve as hubs for innovation and action in circular economy practices, in driving urban innovation:
Furthermore, the report highlights the role of the financial sector in enhancing access to funding for circular businesses, with guidance on seizing related opportunities.
“This report is a testament to the growing collaboration among MDBs, now extending into the circular economy. As a group, we aim to help businesses reduce waste, enhance resource efficiency, and build resilient supply chains. At the EBRD, we are committed to driving innovation in circular solutions across our regions,” added Gianpiero Nacci, Director of Sustainable Business and Infrastructure at the European Bank for Reconstruction and Development (EBRD).
