Egyptian waste strategy holds clues for Africa’s recycling future

From the newsletter

The European Investment Bank (EIB) has signed a $22.6 million grant agreement with Egypt to advance recycling. Around $21.5 million will co-finance recycling and pollution-reduction projects while $1.1 million will digitalise Egypt’s environmental agency to strengthen monitoring and enforcement sustainability efforts.

• Most African countries face rising waste volumes but lack adequate recycling systems, with weak regulation, poor infrastructure and low investment hindering progress toward circular economy goals.

• However, Egypt seems to be attracting international funding by prioritising recycling, suggesting it is doing something right that other African nations could study and adapt to their own contexts.

More details

• The EU grant forms part of Egypt’s Green Sustainable Industry programme which is already backed by a $145 million loan from the European Investment Bank (EIB). Together, the financing is expected to unlock $309 million in climate-focused investments, accelerating Egypt’s shift toward a low-carbon, resource-efficient economy.

• “This agreement marks a key milestone in our collective efforts to accelerate Egypt’s green transformation. Through strong international cooperation—particularly with EIB Global and the European Union—we are mobilizing blended finance to catalyse sustainable industrial practices, promote circular economy models and advance our decarbonization agenda,” said Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation.

• On his part, EIB Vice President Gelsomina Vigliotti noted the project to be beneficial to Egyptian companies as they “will be better placed to access climate finance and unlock new large-scale investments that drive renewable energy adoption, enhance recycling and reduce pollution.”

• Egypt is rapidly emerging as a leader in Africa’s recycling and circular economy landscape, drawing in significant international funding by aligning waste management with broader industrial and climate strategies. The recent EU grant alongside the EIB loan is a strong signal of donor confidence in the country’s integrated approach.

• What sets the North African nation apart is that recycling is not treated as a standalone environmental issue but as a critical component of its transition to a low-carbon, resource-efficient economy, positioned alongside industrial policy, energy transformation and emissions control.

• With a population exceeding 100 million, Egypt generates around 100 million tonnes of waste annually. However, collection coverage remains uneven, reaching only 0–35% in rural areas. This sheer scale of unmanaged waste has pushed national leaders to shift from piecemeal recycling projects toward a structured model that views waste as an economic resource.

• At the core of this strategy is the integration of recycling into national planning frameworks. Through flagship initiatives such as the National Solid Waste Management Programme (NSWMP) supported by the EU, Swiss and German governments, Egypt has made visible progress in upgrading collection, sorting and treatment infrastructure across multiple governorates.

• Yet infrastructure is only part of the equation. More significantly, the Egyptian government is embedding recycling and pollution-reduction targets into environmental regulations, industrial licensing systems and public-sector procurement policies. This formal policy alignment is giving international funders confidence that their investments are not merely supporting isolated projects but are rooted in long-term national commitments.

• Cairo has also proven adept at deploying blended finance models that bring together public resources, concessional loans and private capital through coordinated investment frameworks. The Green Sustainable Industry programme, under which the recent EU grant falls, exemplifies this approach. By bundling recycling and industrial decarbonization into a single funding platform, Egypt is reducing investor risk and mobilizing financing at scale.

• This approach is particularly significant in a sector like waste management where projects are often fragmented, under-regulated or too small to attract institutional investors. Egypt’s model shows how integrating circular economy goals into broader climate finance initiatives can unlock systemic, long-term support.

• Another defining feature of its strategy is investment in institutional capability and digital governance. A portion of the latest funding will go toward digitalising the national environmental agency, a move aimed at improving transparency, monitoring, enforcement and data systems. This is a major gap across many African countries where weak oversight often limits recycling programme effectiveness. 

• For other African nations, Egypt’s example highlights the benefits of treating recycling as a strategic development issue rather than a standalone environmental task. Its success lies in embedding waste solutions into national planning, financing and governance systems. By institutionalizing reform and scaling investment mechanisms, Egypt is redefining waste not as a burden, but as a driver of green industrial growth, setting a precedent for sustainable transformation across the continent. 

Our take

• Egypt’s approach offers African nations a practical path to elevate waste management beyond environmental clean-up into economic transformation.

• The country’s investment in digital oversight signals a deeper commitment to institutional reform, showing that credible governance, not just infrastructure, is essential for lasting circular economy success.

• By designing recycling projects that fit blended finance models, Egypt makes them more fundable. Other African countries can follow suit to unlock scalable climate finance and move beyond donor-dependent pilot schemes.