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African Circular Economy Innovation Powers Job Creation and Sustainable Growth

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On the outskirts of Addis Ababa, 30-year-old Behailu Seboka stands at the heart of a quiet revolution. As founder of Askema Engineering, he manufactures high-quality brake pads using collagen-rich waste from slaughterhouses—a once-discarded byproduct now transformed into a valuable industrial resource. What began as a university project has evolved into a thriving enterprise employing 268 people and serving over 6,400 customers across Ethiopia. “With the right support, we can prove that the circular economy is not just beneficial for the environment, but also for business,” Seboka says.

His story is more than an entrepreneurial success—it’s a powerful example of African circular economy innovation in action. At the 2025 Annual Meeting of the African Circular Economy Alliance (ACEA), held in Addis Ababa from October 14 to 16, Askema Engineering took its place among a growing wave of African enterprises turning waste into wealth, pollution into products, and environmental challenges into economic opportunities.

From Madagascar to Burkina Faso, small and medium-sized businesses are pioneering localized solutions that embody the core principle of circularity: keeping materials in use for as long as possible. In Madagascar, innovators are partnering with the Ministry of the Environment to recycle polyethylene sachets into durable thread used in handbags and textiles. In Burkina Faso, plastic waste is being compressed into paving stones and planks that form school desks and public benches—proving that sustainability and social impact can go hand in hand.

These initiatives reflect a broader shift across the continent—one where African ingenuity, backed by coordinated policies and investment, is reshaping how economies grow. With over 10 million young Africans entering the job market each year and only 3.1 million formal jobs created annually, the stakes could not be higher. Yet within this challenge lies immense opportunity: the global circular economy market is valued at $546 billion and could generate up to 11 million new jobs by 2030. For Africa, embracing circular principles isn’t just an environmental imperative—it’s a pathway to inclusive growth, industrialization, and youth empowerment.

The African Circular Economy Alliance (ACEA), now comprising 21 member countries, is at the forefront of this transformation. Its mission is clear: to turn the ecological transition into a catalyst for development, integration, and shared prosperity. The 2025 ACEA Annual Meeting brought together government representatives, multilateral institutions, and private sector leaders—including the African Union, European Union, African Development Bank, ARSO, UNDP, and UNEP—to accelerate progress through dialogue, knowledge exchange, and partnership building.

Central to these discussions was the need to overcome fragmentation in policy, standards, and financing that currently hinders scalability. Initiatives like the African Circular Economy Fund (ACEF), a catalytic instrument managed by the African Development Bank Group, and the African Union’s Continental Circular Economy Action Plan (CEAP) are already laying the groundwork for harmonized frameworks that enable cross-border collaboration and attract private capital.

Finland’s Ambassador to Ethiopia, Sinikka Antila, praised the alliance’s momentum: “I would like to congratulate the African Circular Economy Alliance and the African Development Bank for their steadfast commitment to the circular economy.” Finland, a partner country and donor to the ACEF, sees the model as a blueprint for sustainable industrialization rooted in local context and global cooperation.

Chad’s representative in Ethiopia, Aubin Ndodjide, emphasized the human impact: the circular economy must translate into real jobs and tangible improvements in people’s lives. “We are not just recycling materials,” he said. “We are creating livelihoods for young Africans who are ready to lead this change.”

The African Development Bank Group has embedded circularity into its Ten-Year Strategy (2024–2033), positioning it as a cornerstone of sustainable prosperity. Under its Four Cardinal Points agenda—expanding access to capital, reforming financial systems, leveraging demographic potential, and investing in resilient infrastructure—the Bank sees the circular economy as a unifying force.

“The circular economy ties together the Bank Group’s four cardinal points in a single equation,” said Nathaniel Oluoch Agola, Acting Country Director of the Bank Group in Ethiopia. “It transforms Africa’s resources, ideas, and youth into drivers of economic power.”

As climate pressures mount and resource scarcity intensifies, the world is looking to Africa not just for raw materials, but for leadership in reimagining value chains. From brake pads made of animal waste to classrooms built from recycled plastic, African circular economy innovation is proving that sustainability and profitability are not opposites—but partners.

And in workshops and factories across the continent, entrepreneurs like Behailu Seboka are showing what’s possible when vision meets purpose: a future where nothing is wasted, everything has value, and growth lifts everyone.

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