AfDB Pushes Circular Economy as $546bn Innovation Frontier at UNEA-7

The Bank’s position took the spotlight during Leadership Dialogue 2, “Round and Round: Why circularity and sustainability are critical to the future of global industry.”

At the seventh session of the United Nations Environment Assembly (UNEA-7), the African Development Bank (AfDB) positioned the circular economy not merely as a climate imperative, but as one of the world’s most promising industrial and innovation frontiers—with Africa standing at the centre of this shift.

Addressing high-level discussions at UNEA-7, AfDB Vice President for Power, Energy, Climate and Green Growth, Dr Kevin Kariuki, said the momentum behind circular models is accelerating as global industries seek resilient supply chains, clean-tech inputs, and digitally enabled resource efficiency.

“UNEA-7 comes at a decisive moment for our planet, and for Africa,” Kariuki said. “It is an opportunity to align science, policy and finance to drive a more resilient and sustainable future.”

Circular economy: Africa’s $546bn industrial innovation opportunity

The Bank’s position took the spotlight during Leadership Dialogue 2, “Round and Round: Why circularity and sustainability are critical to the future of global industry.” Key insights highlighted:

• Africa’s circular economy represents a $546 billion annual market opportunity.

• The sector could create over 11 million jobs by 2030.

• High-growth value chains include construction tech, agri-food systems, plastics recovery, sustainable textiles, e-waste processing, and mining-linked material loops.

With nearly 50% of global emissions tied to materials and resource use, panellists said circularity offers a direct pathway to strengthen the clean-energy transition, reduce industrial vulnerabilities, and tackle the material demands of digital transformation.

Innovation as a resilience engine

For economies grappling with climate shocks and volatile global supply chains, circular models enable:

• Reduced dependence on imported materials

• Domestic value addition and regional manufacturing growth

• New investment opportunities in recycling tech, repair ecosystems, and durable product design

• Stronger resilience against commodity and logistics disruptions

“Circularity reduces exposure to global supply shocks by keeping materials in use locally,” Kariuki said. He stressed the need for coherent, whole-of-economy policy frameworks, including predictable regulation and standards that reward durability, resource efficiency and safe design.

Diplomatic momentum: building new tech-centred alliances

On the sidelines of UNEA-7, Dr Kariuki advanced strategic partnerships to scale regional circular-economy innovation:

• In talks with Finland’s Minister of Climate and the Environment Sari Multala, discussions centred on AfDB’s Africa Circular Economy Facility (ACEF) and flagship programmes such as the National Circular Economy Roadmap (NCER) and the AfriCircular Programme. Finland, along with the Nordic Development Fund and Coca-Cola Foundation, remains a core ACEF partner.

• In a separate meeting, UNDP Administrator Alexander De Croo and Dr Kariuki explored collaboration on renewable-energy acceleration under Mission 300, technical support through the NDC Hub and NDC Partnership, and joint circular-economy investments aimed at measurable development impact.

Stronger call-to-action for early adopters

The AfDB is calling on tech innovators, startups, manufacturers, investors, and policymakers to engage early, as the circular-economy transition becomes a key driver of Africa’s next wave of industrialisation.

With multi-billion-dollar markets emerging across materials recovery, digital tracking, clean-energy supply chains, and resilient manufacturing, the Bank says now is the moment for stakeholders to pilot, invest and scale high-impact circular solutions.