Circular economy in Africa: Automotives
Opportunities for automotive remanufacturing as an important step in this broader transformation.
The financial sector is a key enabler for the circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. transition and the circular economy is also an opportunity for the financial sector, as it can create value for asset managers, banks, and other financial services firms and help to manage risk.
The circular economy offers a number of new investment opportunities for African countries. According to the United Nations Environment Programme (UNEP), the value of the potentially recoverable resources that are not currently being collected in Africa is estimated at USD 7.6 billion per year.
Realising the circular economy opportunities, however, will not only require investments in waste management to support keeping products and materials in use, but also in innovations and circular business models in the formal and informal sectors such as repair, reusereuseThe repeated use of a product or component for its intended purpose without significant modification., and sharing models.
This article discusses the examples of finance measures for the circular economy in action. It also looks at shifting public and private funding towards circular investments, developing and adopting circular economy taxonomies, and creating a supportive policy environment (see our Policy article for more details on how policy can shape the circular economy transition).
Ellen MacArthur Foundation
ICLEI Africa
Chatham House
University of Lagos
The Ellen MacArthur Foundation works to accelerate the transition to a circular economy. We develop and promote the idea of a circular economy, and work with business, academia, policymakers, and institutions to mobilise systems solutions at scale, globally.
Charity Registration No.: 1130306
OSCR Registration No.: SC043120
Company No.: 6897785
Ellen MacArthur Foundation ANBI RSIN nummer: 8257 45 925
The work of the Ellen MacArthur Foundation is supported by our Strategic Partners and Partners.