Africa should switch to circular economy
IF the world is to achieve the 2030 development goals, African countries must institute government-backed efforts to switch to the sustainable circular economy model of production/consumption.
The circular economy is a model of sustainable production and consumption that shifts economic growth from resource consumption to more sustainable approaches. For example, the circular economy demands designing products for longer use and ease of repair rather than consumption, a profit-oriented approach that produces short life products to force resell.
Economy experts describe the circular economy model as a new paradigm for business that aims to achieve economic growth through new sustainable business models.
There are various factors that influence the transition to the circular economy, including market awareness, behaviour change, greater access to data and regularisation of informal activities.
For the circular economy to work, it requires rational practices by all parties to any given product value chains, from producers all the way to the consumer, all are responsible. In this regard, multinational companies (MNCs) are key because they have long value chains including their suppliers, consumers, and even financial and government institutions.
To meet global circularity goals, as articulated in Sustainable Development Goal Number 12 “Responsible Production and Consumption”, circular economy principles require extremely close cooperation between MNCs and small and medium enterprise (SME) suppliers who are mostly in developing countries.
However, the trouble is that SMEs are reluctant to switch from linear economy models because they are profitable in the short run. To ensure this noble goal is met, there is need for funding to support sustainable production approaches.
In its latest report, the African Development Bank said the circular economy offered a low-carbon and climate-compatible development strategy with strong adaptation benefits for the continent.
To push and advocate for circular economy uptake around the globe, the European Union launched the switch to circular economy value chains project.
The project is designed to accelerate the uptake of circular practices. In the context of Africa, the project will support ongoing work by the African Circular Economy Alliance to promote and facilitate the switch to the greener more sustainable circular economy model of production and consumption.