The side event on Accelerating a just transition to a Circular Economy in Africa was held on 28 February 2022 during the United Nations Environment Assembly (UNEA) 5.2. The session was jointly organized by the United Nations Environment Programme (UNEP) and the African Development Bank (AfDB).
Mr James Mwangi, Executive Director of the Dalberg Group who moderated the side event welcomed participants by setting the scene on the essence of the side event which brought together a range of distinguished speakers to give insight on how the continent and its partners are working toward realizing the vision of a Circular Economy.
In his welcoming remarks, UNEP Africa Office Acting Director Mr Frank Turyatunga said that UNEP is championing the transition to a circular economy through various programmes and initiatives being implemented globally and in Africa. Recognizing that there is a general appreciation on the benefits of circularity, Mr Turyatunga challenged the meeting to ensure Africa is not left behind in implementing circular economy policies, principles, practices, and action plans. In conclusion, he stated that a just transition to a circular economy calls for collective efforts by all actors.
On his part, Commissioner for the Environment, Oceans and Fisheries at the European Commission (EC) Mr Virginijus Sinkevičius, noted with great optimism that circularity is getting the attention it deserves informing the meeting that the EU has developed the Circular Economy Action Plan under its Green New Deal which gives a framework aimed at minimizing environmental impact throughout products’ life cycle. Mr Sinkevičius mentioned that the EC continues to support various initiatives and programmes across different sectors in Africa that promote circularity, including the most recent engagement that saw the commission join the African Circular Economy Alliance as its strategic partner in February 2022.
Her Excellency Minister Barbara Creecy, Minister of Environment, Forestry and Fisheries of South Africa stated in her remarks said that South Africa is part of the countries implementing the Circular Economy Action Plan for Africa. South Africa is engaging the private sector to promote circularity and in light of this has established extended producer responsibility schemes. Ms Creecy assured of South Africa’s commitment to ensuring that plastic bags are made from recycled material incrementally to reach 100% by 2027. She added that in the long-term, workers will be transitioned from the reclaiming sector which provides employment to about 100,000 people, to the recycling sector which offers more profit and decent work.
Addressing the meeting, the Director General of the Projects Directorate at the European Investment Bank (EIB) Mr Christopher Hurst looked at the role of financial institutions in the transition to a circular economy, drawing from examples of initiatives that EIB is supporting, including those in Africa. Mr Hurst gave the example of the Clean Oceans initiative that deals with the uncontrolled discharge of plastics into the seas focusing on solid waste management and storm water management. He also shared with participants the financial instruments available to support projects embedded with circularity principles such as blending loans with guarantees for risk management, and a combination of loans with grants in order to cover investment gaps. Partners who provide these instruments include the EC and the EIB who can help mobilize technical assistance funds to help identify and prepare circularity projects in Africa.
In his intervention, Dr Al-Hamdou Dorsouma, the Acting Director for Climate Change and Green Growth at the African Development Bank (AfDB) addressed key bottlenecks in mainstreaming the circular economy in Africa. Noting that circular economy activities in Africa remain largely in the informal sector, Dr Dorsouma stated that the main gaps are in policy and financing. As a response, Dr. Dorsuma offered that, gaps in policy can be addressed by countries mainstreaming circularity into national strategies and moving away from the waste sector which has been the focus. He added that Africa attracts only 3% of global finance which is attributed to the high-risk perception of circularity in Africa. Dr Dorsouma informed the meeting that AfDB, with contribution from key partners, is launching the Circular Economy Facility for the incubation of circular businesses. He invited member states who are not in the circular economy alliance to join.
The Minister of Energy Transition and Sustainable Development of Morocco Her Excellency Dr Leila Benali informed the meeting that Morocco was finalizing the process to join Africa Circular Economy Alliance. She added that Morocco’s national strategy for sustainable development has identified circularity as an intervention to achieve the transition to a green and inclusive economy. Dr Benali highlighted key reforms such as the eco-tax on plastics, the introduction of extended producer responsibility and public-private partnerships to implement Morocco’s low carbon strategy. She reiterated that strong partnerships are required to transition to a just circular economy.
In the ensuing interventions from United Nations High Level Champions (UNHLC) initiative, SEED, a global partnership for action on sustainable development and the inclusive green economy, International Labour Organization (ILO) and other participants, the meeting reflected on the need to support the informal sector, including SMEs by scaling up ventures which have been successful, making financing accessible in the context they operate in, and including decent work in the just transition, something that calls for paradigm shifts in attitude, institutions, infrastructure, and financial models. The African Circular Economy Alliance (ACEA) could be one of the catalysts in bringing out change. Participants also heard that to apply circularity, there is a need to leverage technology and innovations, and for banks to rethink their environmental and social governance procedures which lead them to invest in projects that promote circularity. Stakeholders were urged to continue the work that has already started in promoting a just transition to a circular economy in Africa.
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