Why a circular economy is key to sustainable growth?
Current trends in global resource extraction and the rapid pace of consumption growth are incompatible with internationally agreed sustainability targets.
The Circular Economy (CE) – an economy in which products and materials are recycled, repaired, and reused rather than disposed of – is fast gaining traction as a new model for sustainable growth.
With the right enabling environment, the CE offers a promising opportunity for economic development, value creation, and skills development. With the COVID-19 pandemic forcing countries across the globe to restructure their economies, Africa is in a strong position to take advantage of these emerging opportunities.
The emerging opportunities
Africa is the only region in the world where the youth population (up to 24 years old) is increasing and is expected to rise to 51% of the total population by 2050.
As a result, a young and fast-growing middle class will inevitably want a higher standard of living, leading to greater consumption. The CE offers a promising alternative strategy for industrial development and job creation to the traditional manufacturing-led growth pathway.
ACEA is prioritizing three sectors – agriculture, manufacturing, and construction – because of their circularity potential, economic significance, transformative impact potential, and momentum on the continent.