Funding tracker: Circular economy investments drop in May

From the newsletter

Circular economy investments in Africa fell significantly in May, dropping from $157.7 million in April to just $516,000. Three countries—Ghana, Gambia and South Africa—received funding, all for small-scale projects. The sharp decline raises questions about deal pipelines, investor confidence and market readiness.

• May continued the trend of supporting technology and innovation seen in previous months but marked a clear shift toward smaller-scale, community-focused projects. Whereas earlier investments prioritised large infrastructure and government-backed programs.

• May’s funding emphasised grassroots initiatives like Appcyclers, which leverage technology alongside local engagement to address waste management at the community level.

More details

• In Ghana, two startups, AppCyclers and Minana Services, each secured a $0.1 million grant from the TRANSFORM Impact Accelerator, a partnership supported by Unilever, the UK’s Foreign, Commonwealth & Development Office (FCDO) and EY.

• AppCyclers uses web technology, data analysis and community outreach to promote the safe disposal and management of plastic and electronic waste. Meanwhile, Minana Services is revolutionising organic edible oil production in Ghana by employing sustainable, chemical-free farming practices and converting palm waste into biogas for green energy. The company has also introduced a refill system to reduce plastic waste.

• In South Africa and Gambia, a $0.316 million joint funding partnership between UK-based WasteAid and global technology firm Veralto supports waste management initiatives. The funding focuses primarily on expanding resource management in the Greater Banjul Area through WasteAid’s First Step Resource Management Programme, with a portion allocated to enhancing waste efforts in vulnerable South African communities.

• The program empowers informal waste collectors by providing tools, training and support to boost income and promote economic self-sufficiency. Beyond financial gains, it seeks to improve social conditions by fostering safer work environments, reducing stigma and increasing access to essential services.

• A core goal is to combat plastic pollution by discouraging casual littering and open dumping, promoting responsible waste disposal and creating cleaner urban spaces. The community-focused model trains self-employed recycling entrepreneurs, shares waste management best practices and advocates for increased investment from policymakers and donors.

• May marked a break from the scale of projects seen earlier in the year. From February to April 2025, funding across Africa predominantly targeted large-scale infrastructure and multi-country initiatives, with investments totaling millions of dollars. In contrast, May shifted toward smaller-scale grants focused on community empowerment, support for SMEs and inclusion of informal waste collectors. 

• Unlike previous months, which featured a diverse mix of financial instruments—blended finance, debt facilities, loans, private equity and technical assistance—benefiting governments, city councils, startups and large SMEs, May’s funding was mainly grant-based and directed at grassroots actors.

Our take

• May’s funding drop is alarming for a continent already grappling with mounting waste in its fast-growing cities. Without consistent investment, efforts to build resilient circular systems risk stalling—especially in urban centers where poor infrastructure and rising consumption are intensifying the crisis.

• The combined funding for Gambia and South Africa under a single program suggests a regional or cross-country strategy to tackle waste management challenges, which could be a model for future pan-African initiatives.

• May’s pivot toward grant-based, grassroots funding focused on SMEs and informal sector actors reflects a growing recognition that community-led innovation and inclusion are vital for long-term impact.