Africa: From Water Hyacinth to Recycled Paving Stones, Circular Economy Businesses Are Scaling Up With AfDB Support

What the report says

The African Development Bank Group has launched the first cohort of its AfriCircular Growth Programme, an initiative designed to help circular-economy enterprises expand and support green industrialisation across Africa. According to the AfDB material republished by AllAfrica, the programme is being led by the African Circular Economy Facility in collaboration with the African Circular Economy Alliance, and the initial group includes nine businesses operating in ten African countries.

The companies use local or recovered materials to make products ranging from cold storage and fuel briquettes to biodegradable plastics substitutes, insulation materials, recycled pellets and paving stones. The report highlights examples such as Kenya’s Chemolex, which turns water hyacinth into a usable industrial material; Togo’s GIP-Togo, which sells recycled pellets and paving stones; and Nigeria’s ColdHubs, which uses solar-powered cold storage to reduce food losses. Several of the firms also create jobs and offer lower-cost alternatives to imported goods.

The broader context is Africa’s need to retain more value from its raw materials and build stronger processing capacity, as the continent still accounts for a small share of global manufacturing output, citing the bank’s 2025 industrialisation index. The programme will provide strategy, financial-model and investment support, and connect each company with investors. Together, the nine enterprises are seeking to raise US$11.65 million, the AfDB said.

More generally, the initiative fits into the bank’s climate, private-sector and industrial development priorities and reflects growing interest in circular business models that convert waste into inputs for local production.