Africa is facing a growing challenge of managing its waste and natural resources in a sustainable way.
The current traditional linear economic model, characterized by a “take, make, dispose” pattern that is extracting, consuming, and disposing of materials, is inefficient, wasteful, and harmful to the environment and human health. According to the World Bank, Africa generated 174 million tonnes of waste in 2016, and this is expected to increase to 516 million tonnes by 2050. Only 4% of this waste is recycled, compared to 44% in Europe and 35% in China.
A circular economy, which aims to keep materials in use for as long as possible and minimize waste and pollution, could offer a viable alternative that would enhance Africa’s social, economic, and environmental well-being. The Ellen MacArthur Foundation estimates that a circular economy could generate $1.8 trillion of value for Africa by 2030, creating 4.5 million new jobs and reducing greenhouse gas emissions by 25%.
However, despite the potential benefits of a circular economy, many challenges and barriers hinder its implementation in Africa.
One of the major problems is the lack of adequate infrastructure and regulation for waste management and recycling. Most African countries lack formal systems for collecting, sorting, and processing waste, resulting in large amounts of waste being dumped or burned, posing serious health and environmental risks. According to the Global Waste Management Outlook, only 19% of Africa’s urban population has access to controlled waste disposal services, and only 4% of the waste is treated to reduce its environmental impact. Moreover, there is a lack of clear policies and incentives to support circular practices, such as extended producer responsibility, eco-labeling, and green procurement. Without a supportive regulatory framework, companies and consumers have little motivation to adopt circular behaviors and preferences. For instance, only 12 African countries have implemented bans or levies on single-use plastic bags, which are a major source of plastic pollution.
Another problem is the limited awareness and knowledge of the circular economy concept and its benefits among stakeholders. Many businesses, consumers, and policymakers are unaware of the opportunities and advantages of shifting to a circular model, such as cost savings, resource efficiency, innovation, and competitiveness. A survey by the African Circular Economy Network found that only 58% of African businesses are familiar with the circular economy, and only 24% have implemented circular practices in their operations. Similarly, a study by the African Development Bank revealed that only 35% of African consumers are willing to pay more for products that are environmentally friendly or have a longer lifespan.
Additionally, there is a lack of capacity and skills to implement circular solutions, such as eco-design, repair, remanufacturing, and recycling. These require technical expertise, financial resources, and access to markets that are often lacking in the African context. Therefore, there is a need for more education, training, and awareness-raising initiatives to foster a culture of circularity and sustainability in Africa.
Nigeria is one of the most populous and fastest-growing countries in Africa, with a population of over 200 million and a GDP growth rate of 2.3% in 2019. However, it is also one of the most wasteful and polluting countries, generating about 32 million tonnes of solid waste annually, of which only 20% is collected and 10% is recycled. The rest is either dumped in open landfills, burned, or littered in the streets, waterways, and oceans. This poses serious threats to the environment, public health, and the economy, as waste management costs account for 20-30% of municipal budgets. Moreover, Nigeria is highly dependent on the import of raw materials and finished products, which exposes it to price volatility, foreign exchange fluctuations, and trade restrictions. A circular economy could offer a solution to these challenges, by reducing waste generation, increasing resource efficiency, and creating value from waste.
In Lagos, the government has taken to support the circular economy through the launch of the Blue Box program, an initiative to improve waste collection and sorting at the household level, by providing blue boxes to residents for separating recyclable materials, such as paper, plastic, metal, and glass, from other waste. The program also involves the establishment of sorting hubs, where the recyclable materials are further sorted and processed, and the engagement of waste aggregators and recyclers, who buy and transport the recyclables to recycling plants. The program aims to increase the recycling rate in Lagos from 10% to 50%, create 500,000 direct and indirect jobs, and reduce the environmental and health impacts of waste mismanagement.
Besides Lagos, other states in Nigeria have also implemented or planned to implement similar programs to promote the circular economy. For example, Ogun state has partnered with a private company to set up a waste-to-wealth project, which converts organic waste into biogas and organic fertilizer. Kaduna state has launched a waste management and recycling scheme, which provides waste collection bins and vehicles, and trains youth and women on waste sorting and recycling. Delta state has initiated a plastic waste management project, which aims to collect and recycle plastic waste into useful products, such as furniture, tiles, and roofing sheets. These programs not only help to reduce waste generation and disposal, but also create income and employment opportunities for the local communities.
The National Environmental Standards and Regulations Enforcement Agency (NESREA) has issued guidelines and standards for the management of various types of waste, such as electronic waste, hazardous waste, and medical waste. The agency has also enforced the Extended Producer Responsibility (EPR) policy, which requires producers and importers of certain products, such as batteries, tyres, and plastic bottles, to take responsibility for the collection and recycling of their end-of-life products. Furthermore, the government has introduced incentives and subsidies for waste management and recycling activities, such as tax waivers, low-interest loans, and grants. These measures aim to create a conducive environment for the growth and development of the circular economy in Nigeria.
In addition, the government has supported the circular economy in Nigeria by raising awareness and education among the public and the private sector. The government has organized campaigns and events, such as the World Environment Day, the Clean Nigeria Day, and the National Recycling Day, to sensitize the people on the benefits and practices of the circular economy. The government has also collaborated with various stakeholders, such as civil society organizations, academic institutions, and industry associations, to provide training and capacity building on waste management and recycling. Moreover, the government has encouraged innovation and research on the circular economy, by supporting the development and adoption of new technologies and solutions, such as biodegradable packaging, waste-to-energy systems, and circular design. These efforts aim to foster a culture of environmental responsibility and sustainability among the Nigerian society.
Access Bank is one of the leading financial institutions in Africa, with a vision to become the world’s most respected African bank. As part of its sustainability strategy, Access Bank is committed to supporting the transition to a circular economy, by providing financing, advisory, and capacity-building services to circular businesses and initiatives.
Some of the actions that Access Bank is taking to support the circular economy include:
Access Bank contributes to the development of a circular economy policy and framework for Nigeria, as a member of the Nigerian Circular Economy Working Group (NCEWG), which will guide the nation’s operations and investments in the circular economy. The policy and framework developed will outline the objectives, principles, criteria, and indicators for supporting circular businesses and initiatives, as well as the internal circular practices, such as paperless banking, green procurement, and waste management, that the Nigeria will adopt. The policy and framework will also align with the national and international standards and regulations on the circular economy, such as the IFC’s Performance Standards and the UN Sustainable Development Goals (SDGs).
Access Bank through the ACT Foundation supported the Lagos Business School (LBS) in the development of the Leadership Programme for Sustainable Waste Management (LPSWM) in 2019, an initiative to drive Nigeria ‘s transition to circular economy and create sustainable communities by bringing participants who work in the waste management sector or run the their own waste focused initiatives and social enterprises. The Programme which is a leadership and enterprise capacity building platform for youth empowerment in mitigating the environmental and health implications of improper waste management; improve the operational and financial viability of waste management businesses. Over the years of its existence, the programme has delivered the needed information and tools to structure and effectively run a viable enterprise, execute initiatives, projects and formulate better policies.
Access Holdings in partnership with HACEY launched the Zero Carbon Africa Impact Program, a project that aims to guide and empower Africa’s youth to harness climate action as both a catalyst for sustainable business and an instrument for environmental preservation. The program has multifaceted objectives to nurture climate action leaders and foster climate-resilient communities. The program is empowering more than 700 emerging leaders with comprehensive knowledge of climate action while strengthening the capacities of youth networks across 6 sub-Saharan countries (Nigeria, South Africa, Kenya, Ghana, Rwanda and Zambia) to monitor net-zero plans’ implementation, and steadfastly contribute to national and regional net-zero targets. Through a 12-week immersive journey, the program continues to impart knowledge, transfer skills, and ignite a lasting commitment to a sustainable and green Africa.
The program’s cornerstone, the Capacity Building Masterclass, delves into the nuances of climate change and its interplay with sectors such as human rights, urban planning, global public health, sustainable investing, and more. This knowledge repository serves as a bedrock for informed decision-making, driving the implementation of impactful climate interventions across communities. At the time of this report, the program in its fifth week has completed four high-yield courses relating to Climate Science, Global Energy, Sustainable investing and Climate change mitigation. The Zero Carbon Africa Impact Program in sum envisions a future led by empowered high quality young leaders, thriving green and blue economies. With a projected outcome of over 700 exceptional young leaders, 35,000 community advocates, and 28 impactful climate action projects, the program cements its role as a catalyst for transformation, heralding a new era of sustainable prosperity for Africa.
