07 March 2025 – As the world faces growing environmental challenges, the circular economy transforms a linear “take-make-dispose” model to a regenerative system focused on reuse, repair and resource efficiency. We can build a more sustainable and equitable future by redesigning our approach to resources.
During a recent discussion on The Sustainability Salon, Walter R. Stahel, a pioneer in circular economy thinking and member of The Club of Rome and Nobantu A. Mtimde, a circular economy strategist from South Africa, discussed the opportunities and challenges of embedding circular economy principles into mainstream economic systems, particularly within the context of developing economies.
The circular economy: Beyond waste management
A common misconception about the circular economy is its association with waste management. While waste reduction is a crucial outcome, circularity is fundamentally about maintaining value within a system for as long as possible.
Stahel emphasised that circularity is not just about recycling but also preventing waste from being created in the first place. “The circular economy is about maintaining the value of existing assets—whether cultural, human, or manufactured—through reuse, remanufacturing and resource optimisation,” he explained.
This has profound implications for the majority of the world where resource scarcity has long encouraged practices that extend the lifespan of materials and goods. Unlike in high income countries where consumer culture normalises disposability, many low-income communities have embraced repair and repurposing. These traditional methods must now be recognised as key components of a modern and scalable circular economy.
Additionally, low-income nations have an opportunity to leapfrog outdated linear economic models by integrating circular principles from the outset. Countries such as Rwanda have already banned plastic bags and are promoting green manufacturing industries that focus on reuse and recycling. These initiatives demonstrate how circularity can be embedded into national policies to drive sustainable development.
Overcoming barriers to circularity
Despite their potential, scaling circular economy principles remains challenging due to financial constraints, weak policy frameworks and limited access to technology.
Mtimde pointed out that in Africa, many businesses perceive circular practices as costly. “Many view circular models as expensive or difficult to implement,” she said. However, she argues that shifting to circular models—such as leasing rather than selling products—can create new revenue streams.
Stahel emphasises the role of producer responsibility. “Manufacturers should be accountable for the entire lifecycle of their products. If companies had to take back their products at end-of-life, they would design more durable and repairable goods,” he says.
In addition to corporate responsibility, education and skills development are essential to overcoming barriers to circularity. Many workers lack the necessary training to engage in circular industries such as remanufacturing and advanced recycling. Governments and businesses must invest in vocational training programmes to equip people with skills that align with emerging circular economy sectors.
Technology and innovation as enablers
Technology plays a key role in accelerating the transition to a circular economy. Digital platforms facilitate resource sharing, reverse logistics, and materials tracking across supply chains.
One example in Africa is Hello Tractor, a platform that allows smallholder farmers to rent tractors rather than buy them outright, optimising resource use. Similarly, waste-mapping apps in Tanzania integrate informal waste pickers into the economy by providing digital tools to track and optimise waste collection. Such solutions bridge gaps, creating economic opportunities while advancing sustainability.
In the construction industry, digital technologies such as Building Information Modelling (BIM) allow architects and engineers to design buildings with modular components that can be easily disassembled and reused. This reduces waste and ensures that valuable materials do not end up in landfills. Similarly, blockchain technology is being explored as a way to track the lifecycle of materials and prevent resource leakage in global supply chains.
Rethinking investment and finance
A circular transition requires financial innovation. Traditional investment models prioritise short-term profits and often overlook the long-term benefits of circular approaches.
Mtimde stressed that financial institutions must rethink risk assessment models to support circular businesses. “The issue isn’t a lack of funds but a misalignment of financial priorities. Many investors see circular initiatives as risky because they don’t fit conventional frameworks,” she said.
Alternative financing mechanisms such as green bonds, impact investing, and public-private partnerships can help bridge this gap. For instance, philanthropic organisations in India have funded cold storage facilities for farmers, reducing food waste and financial volatility.
Moreover, governments can play a role by offering tax incentives and subsidies for circular business models. In the European Union, the Circular Economy Action Plan has introduced extended producer responsibility schemes that require manufacturers to finance the recycling of their products. This approach not only reduces waste but also encourages businesses to develop more durable goods.
Policy and corporate responsibility
Policy interventions are vital to fostering circular economies. Governments must implement regulations that incentivise sustainable production and consumption while discouraging wasteful practices.
One success has been bans on waste imports, preventing the Global North from offloading non-recyclable waste onto the Global South. China’s decision to stop accepting plastic waste imports forced exporting nations to rethink their waste management strategies.
Corporations must also step up by embedding circular principles into their business strategies. This requires moving beyond sustainability pledges and actively redesigning supply chains for longevity, repairability, and resource efficiency.
Retailers and brands are beginning to adopt circular business models by offering product repair services, resale programmes, and subscription-based models. For example, Patagonia Clothing, through its Worn Wear programme, has introduced a repair programme that extends the life of its clothing, reducing the need for constant production of new items. Similar models could be applied across different industries to ensure a more resource-efficient economy.
Circular economy and social equity
Mtimde also highlighted a promising initiative in South Africa focused on medical assistive devices, particularly wheelchairs. Many individuals in need of wheelchairs cannot afford to purchase them, and often, once a wheelchair is no longer needed, it is discarded. A circular approach in this sector involves a rental or sharing model, where wheelchairs and other medical devices are refurbished and redistributed to those in need. This system not only reduces waste but also ensures greater accessibility for individuals who require mobility assistance. Such initiatives demonstrate how circular economy principles can be applied beyond traditional industries, improving social outcomes while minimising resource depletion.
Beyond environmental and economic benefits, the circular economy can drive social equity by creating local jobs, improving access to affordable goods, and reducing environmental hazards in marginalised communities.
The informal sector plays a crucial role in circular economies, particularly in developing nations. Waste pickers, repair workers, and artisans repurpose discarded materials but often lack formal recognition. Integrating these workers into national circular economy strategies
In many cases, grassroots organisations have stepped in to bridge the gap. Initiatives such as South Africa’s Wastepreneurs Programme support informal waste collectors by providing them with training, protective equipment, and access to larger recycling networks. These efforts not only improve working conditions but also help scale circular activities in a way that benefits both people and the planet.
Moving from theory to action
Redesigning our future through circularity requires collaboration between governments, businesses, financial institutions, and civil society. Moving from theory to action is imperative. Whether through policy reforms, financial incentives, or technological innovation, every sector has a role to play.
As Stahel aptly put it, “Circularity is about systems thinking. We must move away from viewing waste as an inevitability and start seeing it as a failure in design. The future lies in our ability to close the loops and keep resources in play for generations to come.”
Now is the time to commit to a circular future—one that prioritises sustainability, economic resilience, and social well-being. The choices we make today will determine the legacy we leave behind.
The Sustainability Salon is a straightforward and informative live talk highlighting the intersection of climate change, sustainability, circular economy, systems shift and the social impact. Emphasising the bridge between north and south, connecting experts and perspectives.
Nonhlanhla Ngwenya is a The Club of Rome Communications Fellowship alumni. The fellowship is a seven-month mentoring programme aimed at increasing the diversity of voices covering sustainability issues and supporting early-career communications professionals from Most of the World. Applications for the 2025 Communications Fellowships are currently open. Learn more and apply HERE.
