Launched by the African Development Bank Group, the 'AfriCircular Growth Programme' is welcoming its first cohort. The programme aims to help these businesses scale up to strengthen green industrialisation and the local processing of African resources.

Led by the African Circular Economy Facility (ACEF) in collaboration with the African Circular Economy Alliance (ACEA), the programme's first cohort comprises nine enterprises operating across ten African countries. All rely on local resources to meet specific needs. In Nigeria, ColdHubs' solar-powered cold stores have preserved 13.8 million kg of food over the past decade. In Uganda, Bio-Innovations transforms agricultural waste into fuel briquettes that replace firewood.

These companies are addressing a broader industrial challenge. According to the African Development Bank's Africa Industrialisation Index 2025, the continent accounts for less than 2% of global manufacturing output. Retaining more value added on the continent requires developing its processing capabilities.

Several companies in the cohort are already leading by example. In Kenya, Chemolex has harvested 45,000 tonnes of water hyacinth, an invasive plant that it converts into a biodegradable substitute for conventional plastics. In Senegal, Elementerre combines cattail with local soil to produce insulation materials. What used to clog up lakes and waterways is now becoming an industrial raw material.

Building supply chains around local resources

"Africa must retain a greater share of the value on the continent," emphasised Anthony Nyong, Director of the Bank's Climate Change and Green Growth Department, at ACEA's 2026 Annual Meetings.

This ambition is taking shape in value chains that link collection, processing and industrial outlets at national and regional levels. GIP-Togo, for example, supplies recycled pellets to manufacturers in Togo and neighbouring countries. The company also produces paving stones, which have already been laid at a roundabout in Lomé, as well as crutches sold at half the price of imported models. It plans to increase its production from 300 to 500 tonnes monthly.

These activities create jobs and support their customers' incomes. Chemolex employs more than 1,600 women and young people, whilst Eco Renew Recyclers has created 77 formal jobs. Women-led Sikili offers ride-hailing drivers refurbished smartphones, payable in daily instalments. Its rationale is simple: "No phone, no fares, no income."

Manufacturers also benefit from better cost control. Eco Renew's pellet prices have remained relatively stable over the past four years, protecting clients' profit margins against fluctuations in petrochemical markets.

Supporting growth and facilitating access to finance

To reach the next stage, these companies must secure their supplies, guarantee quality and consolidate their management. Access to finance remains a barrier. In Angola, NARISREC recycles end-of-life electronic equipment, aiming to move "from a solution with a proven environmental impact" to "a business model ready to scale up."

The programme offers them individual support covering strategy, financial models and investment proposals. Each company will be put in touch with at least ten investors and supported right through to the finalisation of funding. Together, the nine companies are seeking to raise US$11.65 million.

As one of the Bank's multi-donor trust funds, the African Circular Economy Facility also supports national circular economy policies and the ACEA secretariat, which is hosted by the Bank. Bringing together 23 countries, this intergovernmental alliance develops policies and standards that open new markets for recycled materials.

This support builds on the Bank's Private Sector Development Strategy (2021-2025) and its Climate Change and Green Growth Strategic Framework (2021-2030), which promote business activity and green investment.

The initiative also contributes to the Bank's Four Cardinal Points. It facilitates access to capital, harnesses the demographic dividend, and promotes local processing of natural resources so African innovation can bring greater benefits to the continent.

Bio-Innovations (Uganda); Chemolex (Kenya); ColdHubs (Nigeria, pilot projects in Ghana, Sierra Leone and Kenya); Eco Renew Recyclers (South Africa); Elementerre (Senegal); GIP-Togo (Togo); NARISREC/Binewaste (Angola); RiverRecycle (Ghana, India, Indonesia and the Philippines); Sikili (Côte d'Ivoire and Senegal).

Read the original article on African Development Bank (AfDB).

African Development Bank (AfDB)

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