The Board of Directors of the AfDB has approved the establishment of a €4 million (US$4.32m) Africa Circular Economy Facility to drive integration of the circular economy into African efforts to achieve nationally defined contribution (NDC) targets.
The Facility, a multi-donor trust fund, will operate over a period of 5-years and will receive an initial support of €4 million (US$4.32m) from the Government of Finland and the Nordic Development Fund.
The Facility will focus on three 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 African Development Bank hosts the Alliance’s secretariat.
“Enhancing and promoting Circular Economy is very important for Finland. The world’s first national circular economy roadmap was developed in Finland in 2016,” Jussi Nummelin, Acting Director for the government of Finland Ministry for Foreign Affairs’ Unit for Southern and Western Africa, said.
Under the Paris Agreement, NDCs embody efforts by each signatory to reduce national emissions and adapt to the impacts of climate change. All 54 African countries are members of the Paris Agreement.
“NDF is pleased to join forces with the African Development Bank and the Government of Finland to establish the Africa Circular Economy Facility (ACEF),” Henrik Franklin, Director for Portfolio Origination and Management at Nordic Development Fund (NDF) said.
In addition to supporting African countries’ achievement of NDC targets, it will also advance their progress towards the UN Sustainable Development Goals.
“Putting in place a dedicated financing vehicle for the circular economy positions the Bank as a champion of solutions that decouple Africa’s economic growth from unsustainable extraction of natural resources,” Al-Hamndou Dorsouma, Officer-in-charge for Climate Change and Green Growth at the African Development Bank, said.
At the continental level, the African Union and the African Ministerial Conference on the Environment have recognized circularity as a focal area for their respective recovery programs launched in the wake of the Covid-19 pandemic.