Rwanda is actively shifting from an economy in which manufacturers produce products that consumers only use once, also known as the ‘take-make-dispose’ system, to that in which products are recycled and reused.

This kind of transition towards producing recycled and reusable materials is generally referred to as circular economy. It is part of Rwanda’s vision to be a carbon-neutral and climate resilient country by 2050.

According to the African Development Bank (AfDB), the circular economy has the potential to significantly reduce greenhouse gas emissions by up to 60 per cent by 2050, while enabling African countries to transition to sustainable and clean energy sources.

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In a move to ensure that sustainability is at the core of its policy actions, the government established the National Circular Economy Action Plan and Roadmap in December 2022.

The action plan, which will cost an estimated $211.2 million to implement, envisions placing the circular economy at the core of the country’s economic decision making and practice by 2035, through 17 policy interventions and activities across priority sectors.

"Apart from environmental protection, the circular economy can create new business opportunities and jobs in the recycling and refurbishment sectors, ensuring economic growth and other social benefits," says Olivier Mbera, Country General Manager of Enviroserve.

Enviroserve, a private company that was established by the government and Enviroserve Rwanda Green Park, is dedicated to electronic and electrical waste (e-waste) recycling. It is responsible for collecting and managing all e-waste in public institutions.

It currently operates Rwanda’s only electronic and electrical waste recycling facility located in Bugesera Districtin the Eastern Province, the arrangement which reflects the country’s commitment towards developing and promoting the circular economy.

E-waste management

Due to the rising population in Rwanda, as well as increasing modernisation, the demand for electrical and electronic equipment (EEE) has seen a rise in e-waste generation in the country.

Data from the Ministry of Environment shows that Rwanda has an annual e-waste generation potential of 9,417 tons, 82 per cent of which is generated by individuals, 12 per cent by public institutions and a further 6per cent by private institutions.

Enviroserve is playing a key role in helping Rwanda get rid of e-waste. With a capacity to process up to 10,000 tonnes of e-waste per year, the firm has collected and recycled over 6,949 tonnes of e-waste as well as over 1,599 tonnes of plastic waste since 2019.

According to Mbera, this has been possible thanks to Rwanda’s effort to create a conducive regulatory environment such as the 2016 National Sanitation Policy and the 2018 National Regulations on e-waste management.

"The environmental law has also been revised to include article 20 on e-waste management,” he says, adding that this, along with other regulations, could enable the country to harness the potential that the circular economy has.

His company has so far created more than 975 green jobs.

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The plastics problem

Plastic waste is another significant challenge in Rwanda&039;s transition to a circular economy.

The country generates a staggering 95.4 kilotons of plastic waste daily, according to the Ministry of Environment. This means that every day Rwandans throw away huge amounts of plastic waste – at least 95,400 tons.

Plastic waste represents between 5 to 10 per cent of the total waste generated in the country that ends up in the environment due to insufficient waste disposal.

In 2019, the government issued a ban on the importation, manufacture, sale and use of plastic carry bags and single use plastics, superseding a 2008 law that prohibited the importation, manufacture, sale and use of polythene bags in the country.

Different private sector players have also come up with innovative ways to manage plastic waste.

Companies such as Depot Kalisimbi Ltd are working towards addressing the plastic waste challenge. Kalisimbi processes plastic waste into eco-friendly bricks and pavers, and has been operating the Kigali landfill for the past four years.

According to Xandra Wihogora, Head of Operations at Depot Kalisimbi Ltd, the firm partners with local communities, businesses, and institutions to collect plastic waste, which is then carefully sorted to ensure that the recycled materials meet high industry standards for reuse.

"The plastic is then processed into eco-friendly bricks and pavers which are primarily utilised in construction projects, effectively reducing the demand for virgin plastic and supporting sustainable building practices," she explains.

Wihogora attributes their success to Rwanda's policy response to plastic waste, which she says has created an enabling environment for private players to come up with innovative business solutions.

Such include the Extended Producer Responsibility (EPR) policy that holds producers accountable for the entire lifecycle of their products, including the management of waste.

"This has encouraged businesses to collaborate with recyclers like us to ensure their plastic waste is properly managed," she notes, adding that the incentives such as tax breaks and subsidies to companies engaging in recycling activities enable them to expand their operations and invest in more advanced recycling technologies.

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Financing circular economy

The transition towards the circular economy demands that governments and private sector players accelerate funding towards innovative projects. However, mobilizing that funding remains a challenge in many African countries.

As an attempt to address this, Rwanda Green Fund in partnership with German Agency for International Cooperation (GIZ) through Ireme Invest launched the Waste and Circular Economy programme, which provides funding for entrepreneurs whose business models focus on circular economy solutions.

So far, seven companies out of a cohort of thirty companies, have been selected for financing from the program.

Some of these companies include 1000 Hills Products Ltd, which processes 2 tons of fruit waste daily to generate clean biogas and 58,400 kWh of renewable electricity annually, and Aflimba Ltd, which empowers marginalised women by upcycling denim waste into eco-friendly bags, among others.

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Earlier this year at the sixth session of the United Nations Environment Assembly (UNEA) hosted by the governments of Morocco, Costa Rica, Peru, Rwanda, and other stakeholders, countries resolved that regulations must be backed by solid financing and investment plans, and by directing financial flows to pro-circular economy measures.

At the assembly, the governments of Peru, Rwanda and Slovenia presented case studies of mechanisms to mobilise finance for implementing the circular economy. These include optimizing national budgets, establishing green funds, optimizing fiscal policy approaches and making public procurement circular.

Officials said that governments can provide tax incentives and subsidies, as well as investments in innovation, capacity-building and awareness-raising.