Africa’s Circular Economy Gains Momentum at 2025 ACEA Meeting in Addis Ababa

On the bustling outskirts of Ethiopia's capital, Behailu Seboka, a 30-year-old entrepreneur, is rewriting the rules of industrial innovation. At the helm of Askema Engineering, Seboka transforms slaughterhouse waste into brake pads, turning discarded animal bones into durable auto parts. What began as a university experiment now supports 268 employees and serves 6,400 customers across Ethiopia.

"With the right support, we can prove that the circular economy is not only good for the environment but also for business," Seboka says with conviction.

Askema Engineering's rise from student project to industrial player took center stage at the 2025 Annual Meeting of the African Circular Economy Alliance (ACEA), held in Addis Ababa from October 14 to 16. The company exemplifies how homegrown innovation is forging a path toward a greener, more inclusive African economy.

Circular Economy: A New Development Model for Africa

The circular economy is not merely a sustainability buzzword in Africa — it is emerging as a transformative economic strategy. Unlike traditional "linear" models of consumption and disposal, circularity focuses on reusing, recycling, and regenerating resources, eliminating waste and unlocking new value chains from what would otherwise be discarded.

At the heart of the ACEA Annual Meeting was a question of scale: how can Africa convert pilot projects into policy-backed, investment-ready industries that support jobs, clean the environment, and build long-term resilience?

"Africa's circular transition must be an engine for development, not just conservation," said Nathaniel Oluoch Agola, Acting Country Director of the African Development Bank Group in Ethiopia. "It links our people, our resources, and our ideas into a powerful equation for growth."

Continental Cooperation and Institutional Muscle

The African Circular Economy Alliance (ACEA) — now comprising 21 member states — was established to align national and regional strategies under a shared vision of sustainable prosperity. This year's summit gathered officials from 19 partner institutions, including the African Union (AU), European Union (EU), African Development Bank (AfDB), African Organisation for Standardisation (ARSO), UNDP, and UNEP.

Highlights from the meeting included:

• Updates on the African Circular Economy Fund (ACEF), a catalytic facility of the AfDB designed to unlock private investment for circular businesses.

• Progress on the Continental Circular Economy Action Plan (CEAP), the AU's blueprint to integrate circularity into regional policies and Agenda 2063.

• Dialogues on harmonizing industrial standards, scaling financing mechanisms, and localizing innovation through grassroots engagement.

"The growing number of ACEA members shows rising confidence in Africa's circular vision," said Sinikka Antila, Finland's Ambassador to Ethiopia. Finland, a global leader in circularity, is a key partner and donor to the ACEF.

Grassroots Innovation Driving Transformation

African entrepreneurs and SMEs showcased dozens of circular innovations that are already delivering environmental and economic impact:

• In Madagascar, local innovators supported by the Ministry of Environment are recycling polyethylene sachets into threads for handbags, creating fashion products while reducing plastic waste.

• In Burkina Faso, small enterprises are converting plastic bottles into paving stones and school furniture, meeting infrastructure needs with locally sourced, low-cost materials.

These examples reflect how circularity intersects with livelihoods, education, and urban development, offering real solutions to the continent's most pressing challenges.

Tackling Youth Unemployment Through Circular Jobs

Africa's demographic challenge is also its greatest opportunity. Each year, over 10 million young people enter the labor force — yet only 3.1 million jobs are created. The global circular economy market, valued at $546 billion, offers Africa a powerful pathway to generate over 11 million new jobs by 2030, according to ACEA projections.

The circular economy agenda aligns closely with the AfDB's Ten-Year Strategy (2024–2033) and its Four Cardinal Points:

1. Expanding access to capital

2. Reforming financial systems

3. Harnessing Africa's demographic dividend

4. Investing in sustainable infrastructure

Policy, Finance, and Action: The Road Ahead

As the summit concluded, leaders reaffirmed the need for coordinated action across governments, investors, and communities to scale the circular transition.

"Our mission is to ensure that circularity is not confined to innovation hubs but flows through entire supply chains — from agriculture and manufacturing to waste management and clean energy," said a senior UNEP official.

ACEA called for:

• National Circular Economy Roadmaps tailored to each country's needs

• Stronger partnerships between finance institutions and innovators

• Public procurement reforms that incentivize circular production

• Youth-targeted training and entrepreneurship support

A Green Industrial Future Rooted in African Solutions

Back in Addis Ababa, Behailu Seboka's Askema Engineering is preparing to scale up production and expand into regional markets. His company is proof that the circular economy is not abstract theory — it's already happening, fueled by Africa's resourcefulness, ambition, and resilience.

"The circular economy is our bridge to industrialization," said one ACEA delegate. "It's not just about protecting the planet — it's about creating dignified work, healthy communities, and lasting prosperity."

As the ACEA 2025 Annual Meeting closes, Africa stands more unified than ever in its commitment to circular transformation — one that centers African entrepreneurs, empowers youth, and redefines development for the 21st century.