On the outskirts of Addis Ababa, Askema Engineering is turning slaughterhouse waste into brake pads—an unexpected symbol of Africa’s growing circular economy.
What began as founder Behailu Seboka’s university project now employs 268 people and serves 6,400 customers across Ethiopia. His company’s trajectory captures a larger trend unfolding across the continent: circular business models that transform waste into value while generating employment.
At the 2025 Annual Meeting of the African Circular Economy Alliance (ACEA), held in Addis Ababa from October 14–16, Askema Engineering stood out among dozens of exhibitors demonstrating Africa’s capacity for circular innovation. The event gathered representatives from 21 member states and 19 partner institutions, including the African Union, European Union, African Development Bank (AfDB), and UN agencies, to explore how the circular economy can shift from concept to industrial-scale implementation.
Africa’s circular transition is increasingly framed as an economic necessity. Each year, over 10 million young people enter the labor market, yet only 3.1 million jobs are created. With the global circular economy valued at $546 billion and projected to create 11 million new jobs by 2030, the model offers a potential pathway for sustainable employment and industrial diversification.
Across the continent, small and medium-sized enterprises (SMEs) are testing that hypothesis. In Madagascar, innovators are recycling polyethylene sachets into durable thread for handbags. In Burkina Faso, entrepreneurs are converting plastic waste into paving stones and school furniture. While modest in scale, these initiatives highlight how resource recovery can address waste management challenges while supporting local manufacturing and job creation.
Institutional alignment and regional frameworks
For African governments, the challenge lies in scaling such projects through harmonized policies and investment. The ACEA, launched in 2017 and now spanning 21 countries, is working to integrate circular principles into national development plans. Its approach centers on regional collaboration to avoid fragmented regulatory frameworks that could stifle innovation and trade.
To support these efforts, the African Circular Economy Fund (ACEF)—a financing mechanism of the AfDB—is channeling capital toward projects that demonstrate replicable circular models. The African Union’s Continental Circular Economy Action Plan (CEAP) further aligns these initiatives with the AU’s Agenda 2063, emphasizing industrialization through resource efficiency and waste reduction.
Finland’s Ambassador to Ethiopia, Sinikka Antila, described the Alliance’s progress as a sign of “growing confidence in this shared vision,” underscoring international partners’ increasing interest in supporting African-led circular initiatives.
The African Development Bank’s Ten-Year Strategy (2024–2033) now explicitly embeds circularity as a pillar of sustainable prosperity. The Bank’s Four Cardinal Points agenda—expanding access to capital, reforming financial systems, leveraging demographic potential, and investing in resilient infrastructure—positions circularity not as a niche environmental concept, but as a macroeconomic framework.
This strategic framing reflects a wider recognition that resource circularity and economic resilience are interdependent. Africa’s dependence on imported goods and linear production systems exposes it to price shocks and supply disruptions. By building domestic value chains around reuse, recycling, and material substitution, countries can reduce vulnerabilities while unlocking new growth sectors.
Askema Engineering’s success is one among many examples illustrating how localized solutions can evolve into industrial-scale opportunities when supported by coherent policy and finance. For companies like Askema, the transition is not simply about waste management—it’s about redefining manufacturing through circular design.
The growing collaboration among governments, development banks, and entrepreneurs suggests that Africa’s circular transition is entering a new phase: from experimentation to system integration. With financing instruments, regional frameworks, and demonstrable business cases now in place, the challenge is scaling innovation without losing the local adaptability that has made early circular enterprises thrive.
