New initiative backs Rwanda’s circular economy entrepreneurs

From the newsletter

Recycling startups in Rwanda are set to benefit from an inaugural initiative by GIZ Rwanda and BK Foundation aimed at improving their business capacity. Titled “Urumuri Initiative,” the program will support 135 business owners with training, technical assistance and interest-free loans to boost their operations.  

• Africa’s circular economy relies heavily on informal waste collectors, who recover valuable materials with minimal pay and no protections. Empowering these workers through financing, training, and formal value chains could unlock massive potential, turning waste into a driver of sustainable growth.

• Initiatives like Urumuri can formalize these efforts, linking local recyclers to larger markets and providing financial resources to help businesses scale, innovate, and become key players in Africa’s waste management ecosystem.

More details

• Under the theme "Empowering Green MSMEs in Climate Action and Circular Economy," the Urumuri Initiative will prioritize women- and youth-led businesses, as well as enterprises run by persons with disabilities. The program aims to offer interest-free loans repayable in three years to up to 40 circular businesses.

• The plan aligns with Rwanda’s climate targets and the country’s efforts to mobilize private sector players to fill a $6 billion funding gap for its Nationally Determined Contributions (NDCs) by 2030. GIZ is supporting the Rwandese government by fostering circular business models that contribute to carbon reduction and local job creation.

• “It takes all of us — government, academia, civil society, and, most importantly, the private sector. Micro, small and medium enterprises (MSMEs) are key players in climate solutions and circular economy practices,” said Maik Schwarz, GIZ Rwanda Country Director.

• “The circular economy is an opportunity for businesses. But we need to develop viable businesses; businesses that are climate-resilient and do not emit carbon emissions,” added Beatrice Cyiza, the Permanent Secretary in the Ministry of Environment.

• Africa faces a mounting waste crisis, with 18 of the world’s 50 largest dumpsites located on the continent. Waste piles up in landfills, rivers, and city streets, yet approximately 70–80% of municipal solid waste in Africa is recyclable, though only 4% is currently processed.

• The recycling landscape is shaped by poverty, unemployment, and socio-economic needs, with informal waste pickers playing a crucial but undervalued role. In response to the existing systematic gaps, social enterprises and MSMEs have emerged as vital players in Africa’s circular economy. 

• Initiatives like Rwanda’s Urumuri Initiative demonstrate how targeted support can turn informal waste recovery into viable, scalable businesses. By integrating waste pickers into formal value chains, offering technical training, and providing access to finance, such programs can help build resilient, locally driven circular economies that alleviate landfill pressure and create sustainable green jobs.

Our take

• Africa’s circular economy has enormous potential, but grassroots entrepreneurship alone can’t fix systemic waste management failures. Without government support and infrastructure investment, small businesses and waste pickers will continue to struggle against mounting waste and environmental degradation.

• Programs like Rwanda’s Urumuri Initiative show what’s possible; targeted support can turn informal waste recovery into thriving, scalable businesses. But for lasting impact, these efforts must be replicated continent-wide and backed by policies that regulate waste imports, incentivize recycling, and protect waste workers.

• If African governments combine local innovation with policy reform and regional collaboration, the continent could transform waste from a burden into an asset. By embracing the circular economy, Africa has a unique chance to lead globally in sustainable growth and resource efficiency.