The establishment of a €4 million Africa Circular Economy Facility to “drive integration of the circular economy” into African efforts to achieve nationally defined contribution (NDC) targets has been approved by the African Development Bank.
The facility is a multi-donor trust fund that will operate over 5 years with an initial €4 million investment from the Government of Finland and the Nordic Development Fund.
Al-Hamndou Dorsouma, the officer-in-charge for Climate Change and Green Growth at the African Development Bank, said: “Putting in place a dedicated financing vehicle for the circular economy positions the Bank as a champion of solutions that decouple Africa’s economic growth from unsustainable extraction of natural resources.”
Circular economy is key for climate change adaptation and mitigation, and has vast potential to create jobs, improve productivity and strengthen the economic competitiveness of African countries.
The African Development Bank Group said the facility will focus on three strategic areas:
- Institutional capacity building to strengthen the regulatory environment for circular economy innovations and practices.
- Providing support to the private sector through a business development program.
- Delivering technical assistance to the African Circular Economy Alliance.
Jussi Nummelin, acting director for the Government of Finland Ministry for Foreign Affairs’ Unit for Southern and Western Africa, said: “Enhancing and promoting (the) Circular Economy is very important for Finland. The world’s first national circular economy roadmap was developed in Finland in 2016.
“We are very keen on starting the cooperation with the African Development Bank and with the African Circular Economy Alliance and the Nordic Development Fund to enhance circularity in the World.”
The circular economy supports the Paris Agreement, of which all 54 African countries are members, by extending the lifecycle of products by sharing, reusing, refurbishing, leasing, and recycling existing materials.
The African Union and the African Ministerial Conference on the Environment have recognised circularity as a focal area for their respective post-pandemic recovery programs. The African Development Bank Group said that “several African nations have also embedded circular economy in their Nationally Determined Contributions, and some are developing national circular economy action plans.”
Henrik Franklin, Director for Portfolio Origination and Management at Nordic Development Fund (NDF) said: “NDF is pleased to join forces with the African Development Bank and the Government of Finland to establish the Africa Circular Economy Facility (ACEF). Circular economy is key for climate change adaptation and mitigation, and has vast potential to create jobs, improve productivity and strengthen the economic competitiveness of African countries.”