Innovating Solutions for Africa's Plastic and E-Waste Crisis

Zellow Analysis: Africa's waste crisis represents one of the continent's most pressing environmental challenges and simultaneously one of its most compelling investment opportunities. With plastic waste projected to reach 116 million tonnes annually by 2060 and only 4% of the continent's 250 million metric tons of solid waste currently recycled, the market gap is substantial. Between 2019 and 2023, waste management startups captured 16.5% of all climate-tech deals in Africa, demonstrating growing investor recognition that waste-to-value solutions can deliver both environmental impact and commercial returns. For investors, entrepreneurs, and policymakers evaluating opportunities in African circular economy ventures, understanding the regulatory evolution, startup business models, and market dynamics driving this transformation is essential for identifying sustainable opportunities in this emerging sector.

The Scale of Africa's Waste Challenge

Africa's rapidly growing urban centres are experiencing unprecedented expansion in consumer demand and digital adoption. This growth has intensified the accumulation of plastic and electronic waste across the continent, with these waste streams increasing faster in Africa than in any other region globally.

Plastic Waste Projections

A 2023 analysis by Tearfund projects that plastic waste in sub-Saharan Africa could increase sixfold from 2019 levels to reach 116 million tonnes annually by 2060. Limited formal collection and recycling infrastructure means that much of this volume is openly dumped or burned, causing widespread environmental and health concerns.

The sixfold increase projection reflects the convergence of population growth, rising consumption patterns, and urbanisation trends that concentrate waste generation in cities with inadequate management infrastructure. This trajectory presents both urgent environmental challenges and substantial commercial opportunities for ventures capable of capturing value from waste streams currently treated as disposal problems.

Electronic Waste Dynamics

While Africa generates less e-waste per capita than other continents, volumes are rising steadily. The import of second-hand electronics from wealthier nations intensifies pressure on existing systems, a dynamic some observers describe as toxic colonialism.

Informal recycling sites in regions such as Agbogbloshie in Ghana and Alaba in Nigeria expose communities to hazardous substances, including lead, mercury, and carcinogenic fumes released during open burning or unsafe dismantling. With only approximately 1% of e-waste formally recycled, regulatory systems are weak, and investment in infrastructure remains insufficient.

The Economic Value of Waste

Despite these risks, both plastic and e-waste contain substantial economic value. Metals such as gold, copper, and silver, along with high-quality plastics, can be reintroduced into industrial processes, creating opportunities for green industrialisation, job creation, and innovative circular business models.

The gap between the material value embedded in waste streams and current recovery rates defines the commercial opportunity. Precious metals in discarded electronics, petroleum-derived value in plastic waste, and the manufacturing inputs these materials represent create multiple revenue models for ventures that can efficiently collect, process, and reintroduce these materials into production cycles.

North Africa: Emerging Regulatory Frameworks

Regulatory progress in North Africa remains uneven but is advancing through specific legislative initiatives and pilot programs that demonstrate pathways toward formalised e-waste management systems.

Egypt's Legislative Leadership

Egypt is currently the only country in North Africa with comprehensive legal provisions governing electronic waste management. Law No. 202 of 2020 established a dedicated waste management authority, while Decree 165 of 2002 restricts imports of hazardous substances and explicitly covers e-waste originating from electrical and electronic equipment.

This legislative framework creates regulatory certainty that enables private sector investment in compliant recycling infrastructure. The establishment of a dedicated authority with enforcement powers addresses the institutional gap that has historically prevented effective waste management regulation in many African jurisdictions.

Tunisia's Developing Framework

Tunisia is developing regulatory measures and is drafting a polluter-pays system for importers of electronic equipment. This approach shifts financial responsibility for end-of-life management to the entities introducing products into the market, creating economic incentives for design changes that facilitate recycling while funding collection infrastructure.

Despite these advances, awareness of formal e-waste collection and recycling remains low. Targeted initiatives have been implemented to raise public engagement. Collectun D3E Recyclage partnered with GIZ to encourage over 30 companies to submit obsolete electronics for proper recycling.

Infrastructure Investment And Regional Cooperation

Recent investments indicate growing momentum. A new sorting and collection facility opened in Soukra, Tunisia, and the Korea International Cooperation Agency is assisting Tunisia in establishing a treatment plant to manage underserved waste streams, including refrigerants, polyurethane foam, cooling systems, CFCs, HFCs, and cathode-ray tube screens.

In Egypt, service providers have designated certain branches as e-waste collection points, while the Ministry of Environment supports the development of modern treatment facilities adhering to high environmental and technological standards.

A coordinated subregional approach could facilitate cross-border movement of e-waste to locations with the capacity for environmentally sound management. This regional cooperation model addresses the reality that individual countries may lack the scale or specialized facilities to process all waste categories, making cross-border logistics essential for efficient resource recovery.

West Africa: Strengthening Frameworks And Capacity

West Africa has made more substantial progress in formalizing e-waste management compared to other African regions, with several countries enacting legislation and establishing operational systems.

Ghana's Multi-Stakeholder Approach

Ghana's Hazardous and Electronic Waste Control Act of 2016 emphasises Extended Producer Responsibility principles, although enforcement and operational transparency remain inconsistent. Electronic equipment producers contribute an eco-levy, collected by the Ghana Revenue Authority and managed by the Environmental Protection Agency, which also oversees formal recycling facilities.

Ten formal recycling organisations formed the Electronic Waste Round Table Association in 2020 to guide industry development. The German Development Bank is supporting a national program to purchase e-waste from informal collectors and establish a sustainable recycling system.

This multi-stakeholder model combining government regulation, industry self-organization, and international development support demonstrates a comprehensive approach to sector formalization that addresses financing, technical capacity, and coordination challenges simultaneously.

Nigeria's Private Sector-Led EPR Framework

Nigeria operates a private sector-led EPR framework through the E-waste Producer Responsibility Organization Nigeria (EPRON). EPRON maintains a registry to determine producer market share, collects fees, and allocates funds for collection, recycling, awareness campaigns, research, standards development, and administrative costs. In 2023, Nigeria amended its environmental regulations to strengthen the EPR system through the National Environmental Regulations of 2022.

The private sector-led structure reflects Nigeria's preference for market-based solutions with government oversight rather than direct state operation of recycling systems. This approach can enable faster scaling and innovation but requires robust regulatory enforcement to prevent free-riding by non-compliant producers.

Regional Progress and Challenges

Other West African countries are at various stages of progress. Senegal announced plans for a national e-waste regulatory framework in 2022, though implementation has been slow. Niger and Gambia are developing national strategies but currently lack formal collection networks and regulatory systems.

Improved enforcement has reduced the import of certain second-hand electronics in countries like Nigeria, while regional collaboration and monitoring have helped curb illegal shipments. However, smuggling networks persist, as demonstrated by the interception of over 5 million kilograms of e-waste in 2023 and previous large-scale shipments in 2020.

Capacity Building and Formalisation

Efforts across the region focus on capacity building. Training programs for informal workers, provision of protective equipment, and vocational hubs teaching repair and refurbishment skills are helping to formalise the sector.

Initiatives such as Côte d'Ivoire's Create Lab equip communities with knowledge to repair, reuse, and recycle electronic equipment locally. The expansion of off-grid solar products presents further opportunities for reuse, as technicians repurpose discarded batteries for household energy systems, contributing to the circular economy while minimising waste.

This formalisation approach recognises that informal collectors provide essential services and possess valuable knowledge about waste flows. Rather than displacing informal workers, successful formalisation models integrate them into regulated systems with improved safety, income stability, and environmental outcomes.

The Rise of Waste Management Startups

Africa generates an estimated 250 million metric tons of solid waste annually, yet only 4% is recycled on average. This gap has created a robust market for private sector innovation.

Investment Momentum

Between 2019 and 2023, waste management startups accounted for 16.5% of all climate-tech deals and nearly 5% of climate-focused funding in Africa, demonstrating growing investor confidence in waste-to-value solutions.

This investment concentration reflects investor recognition that waste management addresses multiple value creation opportunities simultaneously: environmental impact suitable for ESG-focused capital, commercial returns from material recovery, and social impact through formalization of informal sector workers.

Integration With Informal Systems

Millions of informal workers across cities such as Nairobi, Lagos, Cairo, and Kampala continue to provide essential collection services. Startups increasingly design models that integrate these workers, improving income, safety, and reliability for downstream recycling operations.

The successful integration of informal collectors represents a critical competitive advantage for African waste startups compared to models simply transplanted from developed markets. Ventures that can formalise existing collection networks rather than building parallel systems achieve faster scaling with lower capital requirements while delivering social impact valued by impact investors.

Multifaceted Impact

The new generation of startups is producing a significant impact across economic, environmental, and social dimensions. Economically, they are transforming discarded plastics, electronics, and other materials into revenue-generating resources and unlocking new business opportunities within the circular economy.

Environmentally, recycling processes and circular production methods reduce carbon emissions and limit the ecological footprint of waste streams. Socially, formal integration of informal collectors and community engagement enhances livelihoods, promotes safer working conditions, and fosters sustainable practices.

With more than 140 waste-focused startups active across Africa, the sector demonstrates strong momentum and the capacity to address waste challenges while generating multifaceted benefits.

Leading African Waste Management Startups: Case Studies

The African waste management technology sector comprises 61 startups, 24 of which have secured external funding. The sector has expanded steadily over the past decade, with an average of five new companies launched each year. Several have reached Series A funding, highlighting operational maturity and commercial potential.

Tagaddod: Used Cooking Oil Collection In Egypt

Founded in Cairo in 2013, Tagaddod operates a digital platform that collects used cooking oil and fats from households and commercial establishments. The company provides free products to households in exchange for used oil and maintains partnerships with restaurants and food businesses.

Tagaddod's model converts hazardous waste into valuable biofuel inputs and secured $26.3 million in Series A funding in 2025, bringing total funding to $27.5 million. This substantial Series A round demonstrates investor confidence in the business model's scalability and the commercial value of used cooking oil as a biofuel feedstock.

The company's approach addresses multiple challenges: preventing cooking oil from entering sewage systems where it causes blockages, creating a collection incentive through product exchanges, and supplying feedstock for biodiesel production. This multi-sided model generates revenue from biofuel sales while providing collection services at minimal cost to households.

Mr. Green Africa: Large-Scale Plastics Collection In Kenya

Based in Nairobi, Mr. Green Africa manages a large-scale system for collecting, processing, and reselling post-consumer plastics. The company employs data-driven processes to formalize and streamline the work of waste pickers.

Partnerships with investors, including DOB Equity and Dow Chemicals, have supported its expansion and reinforced the regional plastics recycling ecosystem. The involvement of Dow Chemicals, a major plastics producer, illustrates how Extended Producer Responsibility principles can create partnerships between waste management startups and the manufacturers whose products eventually enter waste streams.

Mr. Green Africa's data-driven approach to formalizing waste picker operations represents a scalable model for integrating informal collection networks into commercial recycling systems while improving worker income and safety.

Scrapays: AI-Powered Collection Platform in Nigeria

Launched in Lagos in 2019, Scrapays leverages an AI-powered platform to streamline waste collection for households and businesses, ensuring predictable demand for local collectors. The startup raised $200,000 in seed funding in 2024 to scale operations efficiently.

The platform's AI capabilities likely address demand forecasting, route optimisation, and matching between waste generators and collectors. By creating predictable collection schedules and volumes, Scrapays enables informal collectors to operate more efficiently while providing households and businesses with reliable pickup services.

Ecoplastile: Plastic-To-Construction Materials in Uganda

Headquartered in Kampala, Ecoplastile transforms post-consumer plastic into durable roofing tiles and other construction materials. The company uses a decentralised collection network, generating income opportunities for local communities, lowering construction costs, and reducing plastic volumes in landfills and waterways.

Ecoplastile's model demonstrates the circular economy principle of converting waste into input materials for different industries. By producing construction materials from plastic waste, the company creates demand for collected plastics while addressing Africa's housing and infrastructure needs through lower-cost building materials.

Strategic Implications and Investment Considerations

Africa's evolving regulatory landscape, coupled with rapid digitalisation and growing consumption, is reshaping the continent's waste and recycling sector.

Regulatory and Infrastructure Trends

Advancements in North and West Africa highlight the recognition of e-waste and plastic waste as both environmental risks and strategic economic resources. Enhanced enforcement, modern treatment facilities, cross-border coordination, and rising investment in repair and recycling infrastructure are driving the transition toward formalised, commercially viable systems.

The regulatory evolution creates opportunities for compliant operators while increasing risks for informal or non-compliant activities. Startups positioning themselves as partners in government formalization efforts can benefit from policy support, development finance, and preferential treatment in emerging producer responsibility systems.

Private Sector Opportunities

For the private sector, this presents clear opportunities. Companies offering compliant recycling services, digital tracking platforms, advanced material recovery solutions, and circular product design stand to benefit as governments strengthen their frameworks.

The specific opportunities include collection logistics optimisation, material sorting and processing technology, digital platforms connecting waste generators with collectors, producer compliance services for EPR systems, and manufacturing using recycled inputs.

Policy Imperatives

Policymakers must focus on coordinated implementation of producer responsibility systems and capacity building for informal collectors to achieve scale and sustainability. The most effective regulatory approaches balance enforcement of environmental standards with the practical integration of existing informal systems that provide essential collection services.

Zellow Observations: Market Dynamics And Investment

Investment Momentum: The 16.5% share of climate-tech deals captured by waste management startups between 2019 and 2023 demonstrates sustained investor interest, but the nearly 5% share of climate-focused funding indicates deal sizes remain modest relative to other climate sectors. This suggests the sector attracts deal flow but has not yet produced large-scale exits that would justify substantially larger funding rounds.

Business Model Validation: Tagaddod's $26.3 million Series A in 2025 represents a significant validation point for African waste management business models. Series A funding at this scale indicates investors see pathways to profitability and regional expansion, moving the sector beyond proof-of-concept seed funding toward growth-stage capital deployment.

Informal Sector Integration: The emphasis on integrating informal collectors rather than displacing them reflects practical recognition that these networks provide essential infrastructure difficult to replicate. Startups like Mr. Green Africa and Scrapays that formalize rather than replace informal systems demonstrate lower capital requirements and faster scaling compared to building collection networks from scratch.

Geographic Concentration: The concentration of case study companies in Cairo, Nairobi, Lagos, and Kampala reflects the reality that waste management ventures require urban density and consumption levels to achieve viable collection economics. Regional expansion strategies must account for substantially different unit economics in smaller cities with lower waste generation and less developed informal collection networks.

Material Focus: The split between plastic-focused ventures (Mr. Green Africa, Ecoplastile, Scrapays) and cooking oil collection (Tagaddod) reflects different value chain economics. Used cooking oil's direct conversion to biofuel creates simpler business models compared to plastics requiring sorting, processing, and manufacturing integration. However, plastics represent vastly larger waste volumes, creating greater scaling potential despite more complex operations.

Regulatory Arbitrage Window: The current regulatory environment, with frameworks strengthening but enforcement remaining inconsistent, creates a window for startups to establish market positions before competition intensifies. Companies building compliant operations now can benefit from preferred status as governments implement producer responsibility systems requiring corporate partnerships with certified recyclers.

Conclusion: Waste as Economic Frontier

Africa's waste transformation extends beyond environmental management. It is emerging as a strategic economic frontier with the potential to generate employment, strengthen industrial resilience, and accelerate the continent's transition to a circular, climate-conscious economy.

The projected increase to 116 million tonnes of plastic waste annually by 2060 and the current 4% recycling rate for 250 million metric tons of total solid waste define the market opportunity's scale. With regulatory frameworks strengthening across North and West Africa, infrastructure investment increasing, and over 140 waste-focused startups demonstrating viable business models, the sector is transitioning from informal systems toward commercial maturity.

For investors, the combination of environmental impact, social outcomes, and commercial returns makes waste management attractive for ESG-focused capital. For entrepreneurs, the integration of informal collectors, adoption of digital platforms, and development of circular manufacturing models provide multiple entry points into the value chain. For policymakers, effective producer responsibility systems and capacity building programs offer pathways to formalize the sector while preserving the essential collection services informal workers provide.

Investment in innovative startups and effective regulatory frameworks will be pivotal in unlocking the full potential of Africa's waste-to-value sector. The companies and investors that recognise waste not as a disposal problem but as misplaced economic value will capture significant opportunities while contributing to Africa's environmental and economic transformation.