By Fatima Saka
The African Development Bank (AfDB) has launched its first Africa trust fund Circular Economy Facility, a pattern of production and utilization that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for its manifold.
This was at its 2022 Annual Meetings in Finland, on Friday.
The trust fund will boost finance and derate risk innovative circular economy business models beyond waste management.
Also, It will enhance and support the country-led African Circular Economy Alliance (ACEA) in integrating the circular economy into African green growth strategies.
The multi-donor trust fund will operate for a five-year period. It will receive initial support of €4 million from the Government of Finland and the Nordic Development Fund.
The facility will target three major strategic areas: institutional capacity building to strengthen the regulatory environment for circular economy innovations and practices; providing support to the private sector through a business development program; and providing technical assistance to the African Circular Economy Alliance.
The facility is the African Development Bank’s first dedicated trust fund to support circular economy innovations and policy frameworks.
Juha Savolainen, Deputy Director General of the Ministry of Foreign Affairs of Finland and temporary Bank Group Governor for Finland said that Finland is committed to supporting the initiative.
“Finland is committed to supporting the African Circular Economy Alliance and the circular economy as a pathway to green growth. The key to success in designing a circular economy roadmap in Finland has been the involvement of a broad spectrum of stakeholders, such as ministries, local governments and the private sector. We hope that sharing our experience can help others to succeed in their circular transition.”
Dr. Kevin Kariuki, Vice President for Power, Energy, Climate Change and Green Growth at the African Development Bank asserts the African Development Bank’s commitment to the promotion of the circular economy as a development strategy.
He also explained that Circular economy principles align with the African Development Bank’s agenda to transition Africa towards green growth. It is indeed in line with the theme of this year’s Annual meetings achieving climate resilience and a just energy transition for Africa.
“The African Circular Economy Facility will increase the Bank’s portfolio of operations that align with the circular economy. This includes renewable energy, climate-smart agriculture and green manufacturing sectors. This will create new value-chains that generate new green jobs for the African youth”, he added.
