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ESG Publications16 June 2026

Making the Circular Economy Work within African Waste Management Systems

This article considers the feasibility of the circular economy in Africa, looking specifically at the infrastructure, governance and informal sector challenges. It concludes that although the possibilities are immense, it must be applied within local economic contexts rather than be imported from other economies.

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The concept of the circular economy has received considerable attention as a means of tackling resource scarcity, environmental sustainability and economic efficiency. The circular economy is an alternative to the linear "take, make, dispose" economy, aiming to eliminate waste, keep products in use, and regenerate resources through reuse, recycling and regeneration. Although this approach has demonstrated some success in Europe and East Asia, it has not been implemented uniformly across African waste management systems, due to structural, institutional and socio-economic factors. 

This article considers the feasibility of the circular economy in Africa, looking specifically at the infrastructure, governance and informal sector challenges. It concludes that although the possibilities are immense, it must be applied within local economic contexts rather than be imported from other economies. 
2. The Scale of the Waste Challenge 

Africa's waste generation is increasing, because of urbanisation, population growth and changing consumer behaviour. The World Bank (2018) has estimated that approximately 174 million tonnes of waste were generated per year in Sub-Saharan Africa, and will increase to over 516 million tonnes in 2050. In fact, recent forecasts predict that by 2060, plastic waste could triple, unless there are interventions (OECD, 2022). 

But it's not only the volume of waste, but the waste infrastructure. Across many African countries, waste collection rates are less than 50% and much lower in rural areas (UNEP, 2021). Even in major cities such as Lagos, Nairobi and Accra, waste management services are poor. Dumpsites and landfills are used as the main methods of waste disposal, which cause health and environmental issues. 

This is a challenge for circular economy. This means there is a resource (waste) flow. On the other, not having a coordinated infrastructure for collection, sorting and processing diminishes the value capture. 

3. Infrastructure Gaps and Systemic Constraints 

Infrastructure is one of the major barriers to implementing circular economy in Africa. The circular economy is an integrated process of collection, segregation, transport, recycling and remanufacturing. Any weak link in the chain breaks the process. 

Collection and Segregation Deficiencies 

Waste segregation is not guaranteed in African cities. Waste streams are not pure, which affects the quality and value of the recycling. One study found contamination rates for municipal waste streams was more than 40%, impacting the cost of recycling (Kaza et al., 2018). 

Also, collection is fragmented. Local government may offer limited services, with private and community services complementing government. This can be inefficient and economies of scale can be lost, making large-scale recycling unviable. 
Limited Recycling Capacity 

Infrastructure is unfairly distributed and sometimes lacking. For instance, while the global average recycling rate for plastic is 9%, in Africa it is only 4% (OECD, 2022). Existing infrastructure is not always used due to variable supply of sorted waste. 

Energy constraints also play a role. Recycling, particularly of plastics and metals, requires reliable electricity. Where electricity is not as reliable, the cost of operation goes up, discouraging investment. 

Logistics and Market Access 

Logistics costs are also important. In developing nations, a lack of infrastructure or the high cost of transport make it hard to get waste from collection points to recyclers. This is particularly the case for low-value items such as glass or mixed plastics. 

What's more, secondary markets are not well developed. Lack of demand for recycled materials reduces economic returns in a circular economy. This results in a vicious cycle of low demand, leading to low investment, in turn resulting in low supply. 

4. Governance and Policy Misalignment 

Although a number of African countries have embraced the circular economy as part of their national plans, implementation remains weak. 

Regulatory Inconsistencies 

Waste, environmental and industrial policies are often siloed within different ministries. Resulting in overlapped responsibilities and inadequacies. For instance, extended producer responsibility (EPR) schemes, key to the circular economy, are unevenly implemented across the region. 

If EPR schemes do exist, they may not be adequately enforced. Compliance with collection or recycling targets may be insufficient, reducing the impact of such schemes. 

Financing Constraints 

The transition to a circular economy needs initial investment in infrastructure, technology and skills. But government resources are limited and private investors are seen to be taking a risk due to regulatory and market instability. 

The African Development Bank (2020) estimates Africa has an annual infrastructure funding gap of USD 68 billion to USD 108 billion. Waste management has to compete with other sectors, such as energy, transport and health. 

Data Limitations 

Information on waste generation, characterisation and flows is often limited in many African countries. This limits evidence-based policy development and the design of efficient systems. This can lead to misinvestments, and make it difficult to track progress. 

5. The Informal Sector: Constraint or Catalyst? 

A key characteristic of African waste management is the presence of the informal sector. Street scavengers, itinerant buyers and small-scale recyclers are the main collectors of recyclables in African cities. 

Scale and Economic Contribution 

The informal sector in African cities is believed to provide up to 60% of waste collection and recycling services (UN-Habitat, 2020). Thousands of waste pickers work in Nigeria, Ghana and Kenya. 

This offers an existing resource recovery system from a circular economy point of view. The informal sector can recover larger quantities of material than formal actors, particularly of valuable materials such as metals and polyethylene terephthalate (PET) plastics. 

Structural Challenges 

However, informal workers encounter many challenges. These include poor working conditions, exclusion from social protection and formal policy and political processes. Furthermore, their livelihoods are stigmatised, limiting formal participation. 

Finally, formalisation can be a threat to livelihoods. Changes in waste collection and recycling, such as automated sorting, or large contracts with private companies, can impact informal workers. 

Integration Pathways 

Evidence shows that integrated models, which formalise informal workers, are beneficial for efficiency and equity. For example, cooperative models in Cairo and Durban demonstrate that waste collectors can provide efficient collection services while improving their living conditions. 

However, these models require institutional support to be scaled up, such as recognition, funding and training. 

6. Case Examples: Progress and Limitations 

Rwanda’s Plastic Ban 

Rwanda has been praised for its green policies, including the 2008 plastic bag ban. It has reduced plastic litter in urban areas, and helped to keep streets looking cleaner. 

However, some have criticised the policy for relying on harsh penalties and border control measures, which could be challenging to adapt to a more populous and geographically dispersed country such as South Africa. But the ban is limited to only one component of the waste stream, and does not address other issues associated with circular economies. 

South Africa’s Recycling Industry 

South Africa has a relatively sophisticated recycling sector and high recycling rates for some materials (such as paper and metals) of over 50% (Packaging SA, 2023). It also has introduced EPR schemes in several industries. 

Yet, disparities remain. Street scavengers still to play a significant role, and there are inequalities in service coverage between the urban and rural regions. This demonstrates the need for formalisation of informals. 
Ghana’s E-Waste Sector 

Ghana's Agbogbloshie dump has symbolised the dangers and potential of informal recycling. The site allows for the recovery of valuable materials from e-waste while also posing risks to workers. 

New measures, backed by global organisations, seek to formalise the industry by implementing safer processing techniques and standards. There's an increase in safer practices, but questions about scale. 

7. Rethinking Circular Economy Models for Africa 

One problem with the current debate is the generalisation of circular economy models from high-income countries. These models typically rely on high levels of infrastructure, regulation, and consumer education, which may not be present in Africa. 

Context-Specific Design 

Circular systems in Africa need to be tailored to the economic environment. This means acknowledging the role of informality, making technology fit for purpose, and opting for low-cost and decentralised approaches. 

For instance, localised recycling centres or community-based collection may be more feasible than centralised plants in some areas. 

Value Chain Development 

Circular economy approaches should not only focus on waste but the whole value chain. This includes encouraging demand for recycled products through public procurement policies, local production and eco-design. 

Regional Cooperation 

The need to mobilise large investments may favour a regional approach. Joint recycling plants, standardised rules and material flows may enhance efficiency and investors' confidence. 

8. Conclusion: From Concept to Practice 

The circular economy is an appealing concept for waste management in Africa, but it needs to be put into action. The absence of infrastructure, governance and markets are challenges, but not insurmountable. 

Above all, informality does not have to be a barrier, but rather a key to circular systems. Supporting the informal sector, offering relevant infrastructure and tailoring policies are key. 

In summary, for the circular economy to work in Africa, it's now time to innovate. It's not about whether the circular economy can be applied, but how can it be adapted to the socio-economic landscape of Africa. 

References 

African Development Bank (2020) Africa Infrastructure Development Index Report. Available at: https://www.afdb.org 

Kaza, S., Yao, L., Bhada-Tata, P. and Van Woerden, F. (2018) What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050. World Bank. 

OECD (2022) Global Plastics Outlook: Policy Scenarios to 2060. OECD Publishing. https://doi.org/10.1787/de747aef-en 

Packaging SA (2023) South African Recycling Statistics. Available at: https://www.packagingsa.co.za 

UNEP (2021) Africa Waste Management Outlook. United Nations Environment Programme. 

UN-Habitat (2020) Waste Wise Cities Tool and Data Book. United Nations Human Settlements Programme. 

World Bank (2018) What a Waste 2.0 Database. Available at: https://datatopics.worldbank.org/what-a-waste/