AfDB Backs Nine African Circular Businesses Turning Waste Into Industrial Growth

Kenya-based Chemolex has collected about 45,000 tonnes of water hyacinth and converts the invasive plant into biodegradable material that can replace conventional plastics.

The African Development Bank Group has welcomed the first group of businesses into its AfriCircular Growth Programme, an initiative designed to help circular-economy companies expand and strengthen green industrialisation across Africa. The programme focuses on enterprises that use African resources more efficiently, process materials locally and create products that can replace imported alternatives. Its first cohort includes nine companies operating across ten African countries, each using local resources to address environmental, industrial and economic challenges.

The initiative is led by the African Circular Economy Facility in collaboration with the African Circular Economy Alliance, bringing together businesses working in food preservation, recycling, construction materials, electronics and clean energy. Nigeria-based ColdHubs has preserved 13.8 million kilograms of food through solar-powered cold storage over the past decade, and Uganda's Bio-Innovations converts agricultural waste into fuel briquettes that reduce reliance on firewood. These companies show how materials that might otherwise be wasted can support jobs, local manufacturing and stronger supply chains.

Africa still accounts for less than 2% of global manufacturing output, according to the African Development Bank's Africa Industrialisation Index 2025, making greater local processing an important part of retaining more value on the continent. African Development Bank Climate Change and Green Growth Director Anthony Nyong said Africa needs to keep a greater share of that value within its own economies. The new programme supports businesses that are already turning local materials into commercially useful products and now need stronger management, more secure supply chains and better access to finance.

Local Materials Become New Industrial Resources

Kenya-based Chemolex has collected about 45,000 tonnes of water hyacinth and converts the invasive plant into biodegradable material that can replace conventional plastics. Senegal's Elementerre mixes cattail with local soil to manufacture insulation products, turning vegetation that can clog waterways into a resource for construction. These business models demonstrate how environmental problems can become sources of industrial raw material when collection, processing and manufacturing are linked together.

Togo's GIP-Togo produces recycled pellets for manufacturers in Togo and neighbouring markets, along with paving stones and lower-cost crutches made from recycled materials. The company plans to increase monthly production from 300 tonnes to 500 tonnes as demand grows, showing how recycled materials can support regional manufacturing and reduce dependence on imported products. South Africa's Eco Renew Recyclers has also helped customers manage costs because its recycled pellet prices have remained relatively stable during a period of fluctuations in petrochemical markets.

Jobs, Incomes and Circular Businesses Grow Together

Circular businesses in the programme are also creating employment and supporting incomes across different parts of the continent. Chemolex employs more than 1,600 women and young people, Eco Renew Recyclers has created 77 formal jobs, and women-led Sikili provides refurbished smartphones to ride-hailing drivers through daily instalment payments. Sikili's model recognises that access to a working phone directly affects whether drivers can receive bookings, earn fares and maintain their income.

Other companies are building similar models around local waste streams and resource recovery, including Angola-based NARISREC, which recycles end-of-life electronic equipment and is preparing its business for larger-scale expansion. RiverRecycle operates in Ghana as well as India, Indonesia and the Philippines, and ColdHubs has pilot projects in Ghana, Sierra Leone and Kenya in addition to its Nigerian operations. The first cohort also includes Bio-Innovations in Uganda, Chemolex in Kenya, Elementerre in Senegal, GIP-Togo in Togo, Eco Renew Recyclers in South Africa and Sikili in Côte d'Ivoire and Senegal.

Programme Connects Businesses With Investors

Limited access to finance remains one of the biggest barriers facing companies seeking to move from proven environmental solutions to larger commercial operations. The AfriCircular Growth Programme will provide individual support covering business strategy, financial modelling and the preparation of investment proposals, with each company expected to meet at least ten potential investors. The nine businesses are collectively seeking US$11.65 million to expand production, strengthen supply chains, improve quality and develop operations that can serve larger markets.

The African Circular Economy Facility also supports national circular-economy policies and the secretariat of the African Circular Economy Alliance, an intergovernmental group bringing together 23 countries. Its work includes developing policies and standards that can open markets for recycled materials, building on the Bank's Private Sector Development Strategy and its Climate Change and Green Growth Strategic Framework. The initiative also supports the Bank's Four Cardinal Points by improving access to capital, creating opportunities for Africa's growing population and encouraging more local processing so African resources and innovation generate greater economic value within the continent.