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Why Circular Economy Support Is Critical for Africa’s Future Growth

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As the demand for climate-resilient and resource-efficient solutions grows, Rwanda’s youth are responding with creativity and drive. The AfriCircular Innovators Programme is accelerating their efforts by offering the resources and visibility needed to build and scale circular businesses that are both environmentally and economically impactful.

In Kigali, young entrepreneurs are breathing new life into what was once considered waste. From discarded glass and banana trunks to old batteries and surplus chili, Rwanda’s next generation of innovators is proving that sustainability and enterprise can thrive side by side.

This transformation is being nurtured by the AfriCircular Innovators Programme, a strategic initiative by the Africa Circular Economy Facility (ACEF) under the African Development Bank, in partnership with the African Circular Economy Alliance (ACEA). Designed to support micro, small and medium-sized enterprises (MSMEs) engaged in circular economy activities, the programme provides business coaching, grants and market access support to help turn promising ideas into investable ventures.

Youth Innovation Driving a Greener Business Landscape

Take Incuti Foods, founded by Tresor Gashonga and Rafiki Gatsinzi. The company sources excess chili from smallholder farmers, produce that might otherwise rot in storage and transforms it into gourmet sauces now featured in some of Kigali’s most popular eateries. This not only prevents food waste but also provides farmers with a stable, dependable market.

For Tresor, the idea was born out of necessity. Having grown up in rural Rwanda, he witnessed firsthand how much produce was wasted due to a lack of buyers. His solution was simple but powerful: create a product that adds value for the urban consumer while solving a rural supply chain problem. Even more, Incuti Foods encourages customers to return used bottles for discounts, showing their commitment to reducing plastic waste and building a circular model.

This type of thinking lies at the heart of the AfriCircular Innovators Programme. Launched in 2023, the programme’s first cohort trained 30 entrepreneurs across Kigali, Accra and Abidjan. In Kigali alone, there were 150 applicants for just 10 available spots, underlining the deep interest among Rwanda’s youth and the vast untapped potential of the circular sector.

Another entrepreneur from the programme, Gad Nishimwe, founded South Circle, a company that repurposes glass waste into affordable building materials such as terrazzo tiles. These recycled products are up to 40% cheaper than those made from mined materials, demonstrating that sustainability can be cost-effective too. Then there’s Jonathan Shauri, co-founder of Rebanatex, a company that turns banana trunks into textiles. He first noticed the waste generated during banana flour production and began researching ways to extract fiber from the trunks. The result? A unique range of products including laptop bags made from material that once went straight to landfill.

Economic Potential Meets Entrepreneurial Drive

As these examples show, circular entrepreneurship is rapidly gaining ground in Rwanda and the potential for national impact is significant. Studies estimate that a full shift to circular models could create up to 18,000 new jobs in Rwanda by 2030, particularly in agriculture and light manufacturing. These are sectors already dominated by young people, with 39% of the national population aged between 14 and 35.

This demographic dividend, if properly supported, could be Rwanda’s most valuable asset. And yet, young entrepreneurs still face real barriers. Access to patient capital remains a challenge, especially for circular businesses that may require longer timelines to demonstrate profitability. Founders like Merci Hirwa, who runs SLS Energy, a startup providing battery-as-a-service using repurposed EV and e-waste batteries, point out that financial institutions often struggle to see the value in waste-focused enterprises. She shared that when applying for loans, she is routinely asked how such a business could possibly turn a profit.

This highlights a critical issue: for the circular economy to flourish, entrepreneurs need not just capital but investor education, policy clarity, R&D support and access to markets. That’s why the AfriCircular Innovators Programme goes beyond funding. It provides business development services, connects entrepreneurs to new partners and creates a platform where they can be seen, heard and invested in.

Collaboration and Policy

At a recent networking session hosted by ImpactHub Kigali, the implementing partner of the programme, entrepreneurs gathered to exchange ideas and express their needs. Among their calls: harmonization of trade regulations under the African Continental Free Trade Area (AfCFTA), certification systems for circular products and more platforms for collaboration.

One such collaboration is already underway between SLS Energy and Aflimba, a fashion startup repurposing old denim into trendy bags and accessories. Aflimba now powers its workshop using recycled batteries supplied by SLS Energy, a perfect example of the kind of synergies the circular economy enables.

To meet growing demand, ACEF has announced plans to expand the AfriCircular Innovators Programme in 2025, with three new hubs to be launched across the continent. This expansion will allow more entrepreneurs like Tresor, Gad, Jonathan and Merci to access the tools, networks and capital they need to scale their impact.

According to Elisa Luotonen, Coordinator of ACEF, the long-term goal is to build a Pan-African ecosystem of circular entrepreneurs, an interconnected network where ideas, capital and opportunity flow freely across borders. ACEF is also working to mobilize more concessional finance to ensure the sector has the fuel it needs to grow.

A Circular Future Powered by Youth

This initiative aligns closely with the African Development Bank’s Ten-Year Strategy (2024–2033), which places circular economy innovation at the center of its agenda. The strategy includes commitments to scale up financial instruments and provide technical assistance to the 125 million MSMEs across Africa that could benefit from or already participate in circular value chains.

As Rwanda advances toward its Vision 2050 of becoming a high-income, climate-resilient and inclusive nation, it is increasingly clear that young circular entrepreneurs are not just part of the future, they are actively building it. The road ahead still requires strategic investment, policy reform and cross-sector collaboration. But with programmes like AfriCircular leading the way, the building blocks are already in place.

From waste to opportunity, Rwanda’s youth are showing the continent what a circular future can look like and the world is starting to take notice.

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