Ethiopia has officially entered the active implementation phase of a major continental sustainability initiative spearheaded by the African Development Bank (AfDB). This transition forms part of the second phase of the African Circular Economy Facility (ACEF), a multi-donor trust fund established to transform waste into economic value, foster green industrial development, and strengthen domestic value chains.
Following the recent launch of this program, Ethiopia has moved beyond the preparatory planning stage, joining Benin, Chad, and Mauritius. These nations are actively translating established frameworks into concrete institutional structures, financed programs, and actionable public policies. Meanwhile, another group of countries—including Angola, Liberia, Madagascar, and Senegal—is embarking on the first phase by formulating new national roadmaps.
Launched in July 2024, Ethiopia’s Circular Economy Roadmap outlines a strategic plan to transition the national economy from a resource-extraction model toward a circular system that maximizes the utility, reuse, and lifespan of materials, products, and resources. The roadmap identifies priority sectors for circular interventions, including agriculture, manufacturing, construction, and waste management.
In agricultural operations, circular practices focus on sustainable soil and water management, nutrient cycling, organic waste recovery and reuse, food loss reduction, and the conversion of agricultural residues into compost or bioenergy. In the manufacturing sector, the roadmap enhances efficiency and minimizes waste by promoting cleaner production, resource-efficient processes, sustainable product design, and industrial symbiosis (where the waste output of one process serves as an input for another).
African Development Bank officials emphasize that shifting toward a circular economy model is critical to addressing the continent’s vast development challenges. Anthony Nyong, Director for Climate Change and Green Growth at the AfDB, noted that Africa faces an annual development financing gap exceeding USD 400 billion. By optimizing resource utilization, recycling, and domestic value addition, countries can convert environmental priorities into profitable investment opportunities.
Hosted by the AfDB, the African Circular Economy Alliance (ACEA) currently comprises 21 member countries out of 54 African nations, with additional countries expected to join. The Alliance has supported four nations—Cameroon, Ethiopia, Chad, and Benin—in developing their national circular economy roadmaps.