AfDB backs nine recycling enterprises with US$11.65M funding goal

AFRICA – The African Development Bank Group has welcomed nine circular economy businesses into its AfriCircular Growth Programme, aiming to help the cohort secure a combined US$11.65 million to expand production, improve local material processing and scale recycling operations.

Limited access to finance remains one of the biggest barriers for companies moving from proven environmental solutions to larger commercial operations. 

The 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. 

This targeted assistance aims to bridge the gap between proven operational models and the capital required for industrial expansion.

Plastic and Material Recovery Projects Anchor Cohort

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

Togo’s GIP-Togo produces recycled pellets for manufacturers in Togo and neighbouring markets, alongside paving stones and lower-cost crutches made from recycled materials, planning to increase monthly production from 300 tonnes to 500 tonnes. 

South Africa’s Eco Renew Recyclers has helped customers manage costs because its recycled pellet prices remained relatively stable during fluctuations in petrochemical markets. Angola-based NARISREC recycles end-of-life electronic equipment and is preparing for larger-scale expansion.

Social Impact Extends Across Recycling Value Chains

Circular businesses in the programme are creating employment and supporting incomes across 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. 

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.

Local Processing Addresses Manufacturing Deficit

Africa still accounts for less than 2 percent 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. 

Anthony Nyong, director for climate change and green growth at the Bank, said Africa needed to keep a greater share of that value within its own economies. 

The programme supports businesses already turning local materials into commercially useful products and now needing stronger management, more secure supply chains and better access to finance. 

The first cohort includes companies operating across ten African countries, each using local resources to address environmental, industrial and economic challenges by expanding recycling capacity and replacing imported alternatives.

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