Egypt advances circularity with first closed-loop recycling system

From the newsletter

The North African nation of Egypt has launched its first end-to-end recycling system for aseptic beverage cartons, branded “Green Jobs from a Box”. Backed by international and local partners, the project targets the collection of over 700 metric tonnes of used cartons in three years while creating green jobs for more than 1,000 waste collectors.

• Aseptic beverage cartons, commonly used for milk and juice, are made from layered paper, plastic and aluminium that preserve freshness without refrigeration.

• The new system closes the loop by integrating community collection, fibre recovery and reuse of PolyAl, the plastic-aluminium mix left after paper extraction.

More details

• The “Green Jobs from a Box.”  initiative is the result of a multi-year effort to embed circular economy practices into Egypt’s packaging industry while laying the groundwork for extended producer responsibility (EPR). It is supported by GIZ Egypt through the German-funded develoPPP program and Invest for Jobs initiative, alongside partners SIG, Plastic Bank, Carta Misr, and TileGreen.

• Carta Misr will process the paper fibres for reuse, while TileGreen will convert PolyAl into eco-friendly bricks. Plastic Bank’s blockchain-based platform will incentivise and track collection, ensuring transparency and fair rewards for collectors.

• Speaking at the project’s launch, Egypt’s Acting Minister of Environment Dr. Manal Awad described the system as “a powerful example of how innovative partnerships can advance Egypt’s vision for a circular economy.” She noted that integrating the informal sector helps align with Egypt’s Vision 2030 goals while accelerating the adoption of EPR.

• SIG’s President & GM for India, Middle East & Africa, Abdelghany Eladib, added, “This goes far beyond recycling cartons, it’s about proving that packaging waste can be turned into value, opportunity, and impact for people, business, and the planet.”

• Aseptic beverage cartons are becoming common in Egypt, driven by rising demand for non-alcoholic and packaged drinks across Northern Africa. Urbanisation, shifting consumer habits, and higher incomes are fuelling double-digit growth in the non-alcoholic beverages sector, with fruit juices, milk-based drinks, and convenience products expanding rapidly in retail. The liquid packaging carton market in the Middle East & Africa is projected to expand significantly, with Egypt emerging as one of the region’s leaders. By 2034, the Egyptian market alone is forecast to reach approximately $248 million, driven largely by demand in dairy and fruit beverage cartons.

• At the same time, cold-chain infrastructure across Africa remains limited and uneven. Energy supply constraints, high logistics costs, and gaps in storage and transport facilities mean that refrigeration is not always reliable, especially outside major urban centres. For this reason, aseptic cartons have become a preferred option for liquid foods and drinks, as they preserve freshness without the need for refrigeration. Their adoption helps bridge cold-chain gaps, but it also generates a complex waste stream that is difficult to recycle without dedicated systems.

• Yet these cartons hold significant untapped value. The high-quality paper fibres can be recycled into packaging or tissue products, helping to reduce dependence on virgin pulp and lower the carbon footprint of paper production. The residual plastic and aluminium, known as PolyAl, can be transformed into durable materials such as roofing sheets, pallets or eco-friendly bricks, Unlocking this value requires dedicated systems for collection and processing, but once established, they not only divert waste from landfill but also create new revenue streams and job opportunities across the recycling and construction sectors.

Our take

• By prioritising aseptic packaging, Egypt is addressing one of the most challenging waste streams while responding to rising consumer demand and infrastructure limitations amid sustainability pressures.

• The initiative creates a high-impact test case for circular economy infrastructure and extended producer responsibility in packaging, positioning Egypt as a frontrunner in regional packaging circularity.

• With Africa’s liquid packaging market projected to grow, success in Egypt could demonstrate how circular solutions in packaging can be scaled regionally, thereby balancing consumer convenience with sustainability goals.