Africa is discarding renewable feedstocks that global markets urgently need, even as the African circular economy begins to gain momentum.
Across Africa’s bustling cities, mountains of waste pile up in landfills and streets, a visible symbol of a mounting environmental crisis. Yet beneath this discarded refuse lies a hidden fortune: renewable feedstocks like used cooking oil and organic waste that global markets desperately need for biofuels.
While Europe and the United States increase imports of waste-based materials to meet ambitious renewable energy targets, vast quantities of Africa’s waste go uncollected and unmonetized, representing a missed economic opportunity worth billions of dollars.
The global used cooking oil market was valued at approximately USD 7 billion to 8 billion in 2024 and is projected to reach around USD 12 billion to 14 billion by 2032, according to various industry reports, driven by mandates under the European Union’s Renewable Energy Directive and similar policies in the United States.
Africa, however, remains largely on the sidelines. Sub-Saharan Africa generates hundreds of millions of tonnes of municipal solid waste annually, with organic matter making up about 57% on average, yet collection rates hover around 55% and much of the waste is dumped or openly burned.
In countries like Nigeria, huge volumes of used cooking oil from restaurants, street food vendors and households end up dumped or burned, polluting waterways and air.
This mismatch between local surplus and global demand has created a clear arbitrage opportunity — one of the continent’s most overlooked paths to green industrialization.
A Nigerian pioneer bridges the gap
In Nigeria, Logone Group, founded in 2023, is building structured supply chains to collect used cooking oil and organic waste from small businesses and processors.
The firm sources directly from restaurants, food vendors, small and medium-sized enterprises and agricultural operations, then processes and certifies the material for export to renewable fuel markets.
“Logone intends to directly engage SMEs in waste collection, giving them a consistent income source and integrating them into formal supply chains,” chief executive officer Lanre Lawson said.
Under its baseline projections, Logone aims to boost annual incomes for over 200,000 SMEs and smallholders by 29-34%, benefiting more than a million people while avoiding over one million tonnes of CO2 emissions. The model imposes no cost or risk on participants.
“With the right investment partners,” Lawson added, “we can scale from pilots to nationwide integration of SMEs and deliver far greater economic and environmental impact.” Impact reporting is set to begin in 2026.
Circular models prove scalable
Logone is part of a broader awakening. Global renewable mandates are fuelling long-term demand for waste feedstocks, just as Africa’s cities grapple with overflowing landfills and environmental strain.
Waste-to-value ventures are emerging as dual solutions: climate action and export revenue.
In Kenya, BURN Manufacturing has become a standout success. The company produces efficient clean cookstoves that reduce charcoal and firewood use, saving forests and cutting indoor pollution.
Vertically integrated with its own solar-powered factory near Nairobi, BURN has distributed millions of stoves across Africa, financed in part through carbon credits. It exemplifies how circular principles — designing for longevity, repair and low emissions — can scale rapidly with capital.
Financing momentum builds
Capital is beginning to flow. The Africa Circular Economy Facility (ACEF), managed by the African Development Bank and established in 2022, offers grants and concessional finance to early-stage circular ventures.
“Behind every circular start-up is an entrepreneur rethinking how Africa creates value,” said Davinah Milenge Uwella of the African Development Bank. “Through ACEF, we provide the early support needed to attract investors and scale the transition.”
Private funds and blended finance platforms are de-risking projects, while catalytic mechanisms direct capital toward scalable models.
Yet challenges remain. Collection infrastructure is weak, policy frameworks inconsistent, and much waste handling stays informal. Building certified, traceable supply chains — essential for export markets — requires investment and coordination.
Still, momentum is building. The circular economy could generate millions of jobs and billions in value while slashing emissions and pollution.
For investors, Africa offers rare early entry into a new industrial base. For the continent itself, turning trash into treasure represents not just economic opportunity, but a pathway to sustainable growth in an era of climate urgency.
By capturing what it currently dumps, Africa could transform one of its biggest liabilities into a billion-dollar asset.
