Introduction

Ethiopia stands on the precipice of a transformative journey as it seeks to develop a Circular

Economy Roadmap designed to foster sustainability, enhance resource efficiency, and build
economic resilience. The concept of a circular economy (CE) champions a regenerative system
that minimizes waste while promoting the reuse and recycling of materials, thereby encouraging
sustainable production and consumption patterns. In a nation experiencing rapid urbanization and
industrialization, the adoption of circular economy principles offers a viable solution to mitigate
environmental challenges while simultaneously creating economic opportunities.

Transitioning to a circular economy is not just an environmental necessity; it represents a

strategic opportunity for Ethiopia to bolster its economic competitiveness. By moving away from
traditional linear economic models—defined by a 'take, make, dispose' paradigm—Ethiopia can
unlock new pathways for innovation, job creation, and improved resource efficiency. This shift
necessitates reimagining product lifecycles, encouraging sustainable business practices, and
actively integrating local communities into the circular economy framework.

Moreover, Ethiopia's diverse sectors, including agriculture, textiles, and manufacturing, are well-
positioned to reap significant benefits from the implementation of circular economy practices.
By harnessing local resources, promoting eco-friendly technologies, and facilitating
collaborations among stakeholders, Ethiopia can establish itself as a regional leader in
sustainability.

In this context, I will address each question related to the sectoral assessment report aimed at
developing Ethiopia’s Circular Economy, focusing on the specific gaps, challenges, and
opportunities that Ethiopia can capitalize on to pave the way for a sustainable future. Each
response will provide actionable insights and recommendations, ultimately contributing to a
comprehensive and inclusive circular economy roadmap.

1. Do you agree with the SWOTs identified? (validation)

While the SWOTs identified in the draft assessment report provide a solid foundation for
assessing the country's circular economy potential, there are notable gaps that need addressing.
In particular, the assessment report didn’t adequately explore opportunities, strengths,
weaknesses, and threats with job creation and skill training, which are critical components for
the success of the circular economy, particularly aligning with Ministry of Labor and Skills'
mandate.

1. Strengths:

 Ethiopia has a young and growing labor force that could be a significant asset in
developing circular economy sectors. However, the draft does not fully recognize this as
strength.

 Existing cottage industries (Informal sectors) that align with the circular economy, can
serve as a foundation for circular economy practices in Ethiopia, but this connection is
underexplored.

2. Opportunities:

 Job creation in emerging sectors like waste management, renewable energy, and
recycling should be highlighted as significant opportunities. Moreover, Ethiopia’s green
energy potential could catalyze circular businesses, which is not sufficiently emphasized
in the draft.

 There is a huge opportunity for skill development and training, especially in technical and
vocational education that aligns with circular economy needs, which could help transition
workers from traditional to greener jobs.

3. Weaknesses:

 The draft misses highlighting the lack of a skilled workforce in circular economy
sectors. Without investment in skills development, there is a risk that the implementation
of circular economy initiatives will be hampered.

 Weak integration between policy frameworks under the Ministry of Labor and Skills and
other relevant ministries (such as the Ministry of Environment) may impede collaborative
action.

4. Threats:
  Global competition and fast-paced technological changes could threaten local job markets
unless the government prioritizes up skilling its labor force.

 Without a clear strategy for circular economy skill development, Ethiopia may struggle to
build the necessary human capital to sustain this economic transition.

In general, while the draft assessment report does present relevant aspects, it would benefit from
incorporating a more comprehensive analysis of how job creation and skill training, aligning
with Ministry of Labor and Skills mission, can support the circular economy’s growth. These
aspects are essential to the long-term success of Ethiopia’s Circular Economy Roadmap.

2. Do you have suggestions to make a gap, challenge or opportunity more concrete?

Making a gap, challenge, or opportunity more concrete involves specifying actions, stakeholders,
and potential outcomes. Here are my suggestions for each of these aspects concerning Ethiopia's
circular economy:

1. Gap: Limited Awareness of Circular Economy Practices

Concrete Suggestion:

 Action: Launch a national awareness campaign focused on the benefits of circular

economy practices.

 Target Stakeholders: Schools, community organizations, businesses, and local

governments.

 Outcome: Increased public understanding and demand for sustainable products and
practices. For instance, conducting workshops in schools and community centers can
engage youth and local leaders, helping to spread knowledge and inspire community
initiatives.

2. Challenge: Insufficient Waste Management Infrastructure

Concrete Suggestion:
  Action: Develop a pilot program for waste segregation and recycling in a specific urban
area.

 Target Stakeholders: Local government, waste management companies, community

organizations, and residents.

 Outcome: Improved waste management practices, reduced landfill use, and increased
recycling rates. The pilot can serve as a model for other cities, including establishing a
feedback mechanism for continuous improvement.

3. Opportunity: Promotion of Green Jobs in Agriculture

Concrete Suggestion:

 Action: Implement training programs for farmers on organic farming and sustainable
practices, incorporating agro-ecological methods.

 Target Stakeholders: Agricultural extension officers, NGOs focused on rural

development, and universities.

 Outcome: Increased production of organic crops, improved soil health, and enhanced
livelihoods for farmers. By showcasing successful case studies, other farmers can be
encouraged to adopt similar practices.

4. Gap: Lack of Access to Financing for Circular Initiatives

Concrete Suggestion:

 Action: Establish a green finance fund specifically for circular economy projects in
MSMEs and cottage industries.

 Target Stakeholders: Financial institutions, government, and business associations.

 Outcome: Enhanced access to capital for innovative circular projects, leading to the
growth of sustainable businesses and job creation. Providing training on how to apply for
funding can further support entrepreneurs.

5. Challenge: Underutilization of Local Resources

Concrete Suggestion:

 Action: Create a resource map identifying local materials and waste streams that can be
repurposed within communities.

 Target Stakeholders: Local governments, community groups, and research institutions.

 Outcome: Increased local resource utilization and reduced dependency on imported

materials. The map can help local businesses identify potential feedstocks for new
products or services.

6. Opportunity: Development of Eco-Friendly Packaging

Concrete Suggestion:

 Action: Initiate a collaboration between local manufacturers and universities to design

and test biodegradable packaging materials.

 Target Stakeholders: Packaging manufacturers, universities, and environmental NGOs.

 Outcome: Reduction in plastic waste and promotion of sustainable packaging solutions.

A pilot project could be launched with local products, allowing for consumer feedback
and potential market expansion.

7. Gap: Lack of Data on Circular Economy Impact

Concrete Suggestion:

 Action: Develop a national database for tracking circular economy initiatives, including
waste reduction, resource efficiency, and economic benefits.

 Target Stakeholders: Government agencies, academic institutions, and industry

associations.

 Outcome: Enhanced understanding of the impact of circular economy practices,

informing policy decisions and business strategies. This could also facilitate reporting on
progress toward sustainability goals.
8. Challenge: Inefficient Supply Chains

Concrete Suggestion:

 Action: Implement a program for local businesses to share logistics and resources,
creating a collaborative supply chain network.

 Target Stakeholders: Local businesses, industry associations, and logistics providers.

 Outcome: Reduced costs, increased efficiency, and minimized waste in supply chains.
Success stories from this initiative can encourage broader participation.

Therefore, focusing on concrete actions, clearly identifying stakeholders, and outlining expected
outcomes, these suggestions can help to turn gaps, challenges, and opportunities into actionable
initiatives that advance Ethiopia’s circular economy. This approach not only clarifies the
pathway forward but also fosters collaboration among diverse stakeholders, driving meaningful
change.

3. From the systemic perspective, which gaps and opportunities depend on each other?

From a systemic perspective, identifying gaps and opportunities that depend on each other in the
context of Ethiopia’s Circular Economy Roadmap—particularly regarding job creation and skill
training in circular economy sectors—requires a holistic analysis of interconnected elements.
Here’s an overview:

1. Policy and Regulation Gaps & Opportunities

 Gap: Ethiopia lacks comprehensive, well-enforced policies specifically designed for a

circular economy. Existing environmental laws focus more on pollution control rather
than resource regeneration and waste minimization.
 Opportunity: Developing clear, integrated policies that promote resource efficiency,
recycling, and reuse. These policies should be coordinated across sectors (e.g.,
agriculture, industry, waste management) and provide incentives for innovation and green
investment. This could support industries in adopting circular practices, enhancing
sustainability.
  Interdependency: Policies must align with investment and technology gaps to ensure
there’s regulatory support for adopting new business models and technologies.

2. Infrastructure Gaps & Opportunities

 Gap: Ethiopia faces infrastructure challenges, especially in waste collection, recycling

facilities, and sustainable supply chains.
 Opportunity: Investing in infrastructure that supports the circular economy such as
waste sorting, recycling plants, composting facilities, and green transportation.
Infrastructure development can be powered by partnerships between public, private, and
international entities.
 Interdependency: Policy and regulation can drive infrastructure development, while
proper infrastructure enables enforcement of these policies. In turn, improved
infrastructure creates the foundation for innovation and private-sector involvement.

3. Financial Gaps & Opportunities

 Gap: Limited access to financing for green projects, especially for MSMEs and startups
looking to develop circular economy solutions.
 Opportunity: The creation of circular economy funding schemes and tax incentives for
green innovations supported by government and international development agencies.
Additionally, developing green bonds or financing tools can drive the flow of capital into
sustainable projects.
 Interdependency: Financing relies on regulatory frameworks that reduce investor risk
and provide guarantees, while infrastructure and innovation also depend on the
availability of financial resources.

4. Innovation and Technology Gaps & Opportunities

 Gap: Low levels of technological adoption and innovation in waste management,

renewable energy, and sustainable production techniques.
 Opportunity: Ethiopia can leverage global and local innovations to build circular
processes, from industrial symbiosis to renewable energy integration and digital tools for
 resource tracking. Research institutions, universities, and MSMEs should be supported to
drive this innovation.
 Interdependency: Innovation thrives in environments where policies, financing, and
infrastructure are aligned to support research and development (R&D) and the scaling of
sustainable technologies.

5. Public Awareness and Education Gaps & Opportunities

 Gap: A general lack of awareness and understanding of circular economy principles

among businesses, consumers, and policymakers.
 Opportunity: Introducing circular economy education at various levels—from schools to
businesses—and raising awareness through media, workshops, and public campaigns.
Empowering citizens with knowledge will create demand for sustainable products and
services, pushing industries toward circular models.
 Interdependency: Education can only result in tangible action if policies, infrastructure,
and financing support the adoption of circular practices. It also encourages innovation by
fostering a new generation of thinkers and entrepreneurs.

6. Market Gaps & Opportunities

 Gap: Limited markets for recycled products, secondary materials, and renewable
resources. Opportunity: Developing local and regional markets for recycled materials
and sustainably produced goods. Encouraging businesses to adopt extended producer
responsibility (EPR) programs and use recycled content in products could also create
demand and reduce raw material imports.
 Interdependency: Market growth is dependent on innovation in recycling and
sustainable production. Policies and financing play roles in nurturing such markets, while
education can help shift consumer preferences toward circular products.

7. Supply Chain and Industrial Gaps & Opportunities

 Gap: Linear supply chains dominate Ethiopian industries, with little emphasis on
material reuse, waste recovery, or closed-loop systems.
  Opportunity: Redesigning supply chains to be circular, integrating processes like reverse
logistics, industrial symbiosis (where waste from one industry serves as input for
another), and material recovery systems. This can improve resource efficiency and reduce
costs.
 Interdependency: For circular supply chains to thrive, innovations in materials, strong
regulatory support, and the availability of financial incentives are crucial. Collaboration
between industries, driven by policy, can also encourage the development of sustainable
practices.

8. Data and Metrics Gaps & Opportunities

 Gap: A lack of data collection systems that can track resource use, waste generation, and
circular practices across industries.
 Opportunity: Establishing data systems to monitor and evaluate circular economy
performance. These metrics can help identify inefficiencies, guide policy decisions, and
foster accountability among businesses and public institutions.
 Interdependency: Data systems require investment in technology and infrastructure, and
are key to measuring the impact of policies and innovations. They also drive
transparency, which can help attract financing and consumer trust.

Systemic Interdependency Overview

The gaps and opportunities in Ethiopia's circular economy development are deeply
interconnected. For instance, without supportive policies and regulations, financing and
innovation will struggle to take hold. Infrastructure is vital for both the logistical side of circular
processes and enabling market growth. Financial mechanisms, in turn, depend on the strength of
regulatory frameworks and infrastructures, which are further, supported by public awareness and
data collection systems. Education and awareness foster demand and innovation closes the loop
by providing solutions for a circular supply chain.

Holistic Approach for Roadmap Development

 Cross-Sector Collaboration: All sectors (agriculture, manufacturing, waste, and energy)

need to collaborate, aligning their circular economy efforts with national goals.
  Public-Private Partnerships: Leveraging partnerships between the government,
businesses, and international bodies will allow Ethiopia to access new technologies,
financial support, and expertise in circular economy practices.

 Phased Implementation: Starting with quick wins in high-impact sectors (e.g.,

agriculture and waste management), Ethiopia can progressively integrate circular
practices into other areas.

This systemic approach will help Ethiopia overcome existing gaps while unlocking opportunities
that drive economic growth, environmental sustainability, and social benefits.

4. Which opportunities would you priorities?

Prioritizing opportunities for developing Ethiopia's Circular Economy Roadmap involves

focusing on those that can create the most immediate impact while laying the groundwork for
sustainable long-term growth. Here are the opportunities, I would prefer to prioritize:

1. Skill Development and Education

 Rationale: Building a skilled workforce is foundational for implementing circular

economy practices across various sectors. Training programs can equip individuals with
the necessary knowledge to adopt sustainable practices, fostering innovation and
enhancing job creation.

 Action: Collaborate with educational institutions to develop targeted curricula and

training sessions focused on circular economy principles.

2. Policy Framework Development

 Rationale: Establishing a supportive regulatory environment is crucial for facilitating

circular economy initiatives. Effective policies can provide clear guidelines, incentives,
and standards that encourage businesses to adopt sustainable practices.

 Action: Engage stakeholders to draft comprehensive policies that promote circular

economy practices and provide incentives for compliance.

3. Community Engagement and Awareness Campaigns

  Rationale: Increasing public awareness is vital for driving consumer demand for
sustainable products and practices. Engaging communities can foster a culture of
sustainability and encourage local participation in circular initiatives.

 Action: Launch awareness campaigns that highlight the benefits of the circular economy,
utilizing local success stories to inspire action.

4. Waste Management and Recycling Infrastructure

 Rationale: Improving waste management infrastructure is essential for effective

recycling and up-cycling, which are core components of a circular economy. This will
help reduce waste and promote resource efficiency.

 Action: Invest in developing recycling facilities and efficient waste collection systems in
urban and rural areas.

5. Support for Micro, Small and Medium Enterprises and Cottage Industries

 Rationale: MSMEs and cottage industries play a significant role in the economy and can
be pivotal in the transition to a circular economy. Supporting these businesses can create
jobs and promote sustainable practices at a community level.

 Action: Implement programs that provide technical support, access to financing, and
market opportunities for businesses adopting circular practices.

6. Sustainable Agricultural Practices

 Rationale: Agriculture is a cornerstone of Ethiopia's economy, and promoting

sustainable practices can enhance resource efficiency, reduce waste, and improve food
security.

 Action: Support initiatives that provide training and resources for farmers to adopt
sustainable farming practices, such as organic farming and composting.

7. Research and Development

  Rationale: Investing in R&D is critical for developing innovative solutions tailored to
Ethiopia’s unique context, enabling the country to leapfrog into more sustainable
practices.

 Action: Foster partnerships between universities, research institutions, and industries to

promote innovation in circular economy practices.

8. Promotion of Green Jobs

 Rationale: Creating green jobs can support economic growth while advancing
sustainability goals. This is particularly important for youth employment and community
resilience.

 Action: Develop initiatives that facilitate job creation in sectors aligned with circular
economy practices, providing training and support to prepare the workforce for these
roles.

9. Digital Solutions and Technology Integration

 Rationale: Leveraging digital technologies can enhance efficiency and transparency in

resource management, waste tracking, and supply chains, making it easier to adopt
circular practices.

 Action: Encourage the development of digital platforms that facilitate resource sharing
and tracking of circular economy initiatives.

10. Sustainable Sourcing and Production

 Rationale: Encouraging industries to adopt sustainable sourcing practices can minimize

environmental impact and support local economies.

 Action: Provide guidelines and support for businesses to implement sustainable sourcing
and circular production processes.

By prioritizing these opportunities, Ethiopia can effectively drive the transition to a circular
economy. Each opportunity not only addresses specific challenges but also reinforces others,
creating a synergistic effect that can accelerate progress. Engaging diverse stakeholders,
including government, private sector, and communities, will be crucial to successfully
implementing these initiatives and achieving sustainable development goals.

5. What is needed to exploit the opportunities?

Exploiting the opportunities to develop Ethiopia's circular economy requires a multifaceted

approach involving various stakeholders and resources. Here are key elements needed to
effectively leverage these opportunities:

1. Strong Leadership and Commitment

 Political Will: Leadership from the government is essential to create a conducive

environment for circular economy initiatives. This includes establishing clear policies,
regulations, and frameworks that promote sustainability.

 Multi-Stakeholder Collaboration: Encourage collaboration between government,

private sector, academia, and civil society to share knowledge, resources, and best
practices.

2. Comprehensive Policy Framework

 Regulatory Support: Develop policies that support circular economy practices,

including incentives for businesses adopting sustainable practices, waste management
regulations, and standards for sustainable products.

 Long-Term Vision: Create a national circular economy strategy that outlines specific
goals, timelines, and responsibilities for various stakeholders.

3. Investment in Infrastructure

 Waste Management Systems: Invest in infrastructure for efficient waste collection,

sorting, and recycling facilities to facilitate circular practices.

 Research and Development Facilities: Support the establishment of R&D centers

focused on developing innovative solutions for circular economy challenges.

4. Capacity Building and Education

  Training Programs: Implement training and capacity-building programs for various
stakeholders, including businesses, farmers, and community members, to educate them
on circular economy principles and practices.

 Curriculum Development: Integrate circular economy concepts into educational

curricula at all levels to foster a culture of sustainability from an early age.

5. Financial Support and Incentives

 Access to Funding: Provide financial assistance, grants, or low-interest loans to

businesses and communities pursuing circular economy initiatives, particularly MSMEs
and cottage industries.

 Incentives for Sustainable Practices: Establish tax breaks, subsidies, or other financial
incentives for businesses that adopt circular economy practices or invest in sustainable
technologies.

6. Research, Innovation, and Technology Adoption

 Encouraging Innovation: Foster a culture of innovation by supporting startups and

entrepreneurs working on circular economy solutions, including new technologies and
business models.

 Adoption of Digital Tools: Promote the use of digital technologies and data analytics to
enhance efficiency in resource management and waste tracking.

7. Community Engagement and Awareness

 Public Awareness Campaigns: Conduct awareness campaigns to educate the public

about the benefits of circular economy practices, encouraging consumer demand for
sustainable products.

 Community Participation: Involve local communities in the planning and

implementation of circular initiatives to ensure that solutions are context-specific and
meet local needs.

8. Sustainable Supply Chain Development

  Promoting Local Sourcing: Encourage businesses to source materials locally and
sustainably, reducing environmental impact and supporting local economies.

 Circular Business Models: Support businesses in adopting circular business models,

such as product-as-a-service, up-cycling, and waste-to-resource approaches.

9. Monitoring and Evaluation Systems

 Data Collection and Analysis: Establish systems for collecting and analyzing data on
circular economy practices to monitor progress, identify challenges, and inform decision-
making.

 Impact Assessment: Regularly assess the social, economic, and environmental impacts
of circular economy initiatives to ensure they align with sustainability goals.

10. International Collaboration

 Knowledge Sharing: Engage in partnerships with international organizations and

countries with established circular economy practices to share knowledge, technology,
and best practices.

 Access to Global Markets: Facilitate access for local producers to international markets
for circular products, helping to promote sustainable trade.

By addressing these elements, Ethiopia can effectively exploit the opportunities for developing a
circular economy. A collaborative, well-resourced, and inclusive approach will be essential to
ensure that the transition is not only sustainable but also equitable and beneficial for all
stakeholders involved.