Port-Louis, Mauritius, 28 January 2025, (ECA) – A two-day validation workshop to review a Circular Economy Action Plan in Port Louis, Mauritius, concluded with a call by stakeholders and experts on the need for Small Island states to champion innovative financing mechanisms for blue and circular economies in a bid to advance socio-economic development and preserve ecosystems.
The meeting was held against the backdrop of a growing call for a circular economy approach in Africa, which experts have promoted, as “an important holistic framework that reinforces the principles of the 2030 Agenda and Agenda 2063 to address poverty eradication, resilience, and innovation in the face of multiple crises facing African countries.” Key to the discourse on the Circular Economy by the ECA and its partners has been the need to tackle the “resource-intensive linear economy approach of ‘take, make and waste,’ which intensifies the continent’s environmental challenges, including waste, pollution, and biodiversity loss, among others.
Over the two days, the experts made critical linkages with strengthening innovative financing derived from blue and green bonds, as well as taxes to underpin the success and sustainability of circular economy initiatives.
Speaking at a panel discussion on partnerships and financing for the blue and circular economy for island states in Africa and the Indian Ocean states, Nassim Oulmane said small Island states need guidance to develop innovative financial mechanisms that can mobilize funds for blue and circular economy. Mr. Oulmane, the Chief of Section, Natural Resources and Green and Blue Economy at the United Nations Economic Commission for Africa (ECA), stressed the importance of evidence-based policies, innovative ecosystems, capacity building, and sustainable budgeting for financing the blue and circular economy.
The experts recognized that while development funding is varied, there are challenges in accessing the requisite resources to advance regional projects. According to Oulmane, there is a need for a quick and effective approach to resource access that can support member states such as those belonging to the Indian Ocean Commission (IOC) to showcase the feasibility of regional initiatives.
He noted that guiding principles and success factors, such as strong partnerships and integration of the blue and green economies, are important for the success of the funding mechanisms. He also stressed the need for clear institutional arrangements to facilitate engagement and effective financing.
The discussions also noted the importance of a much broader approach to the circular economy - beyond waste management and emphasized the importance of transforming value chains for a more inclusive and sustainable economic growth and development, as outlined in Agenda 2063.
According to the ECA, a circular economy enhances the resilience of communities and economies by promoting regenerative and restorative practices. This resilience is vital in times of multiple crises, providing a buffer against resource shortages, economic shocks, and environmental degradation. Circular systems also enable quicker recovery and adaptation to changing circumstances.
Théo Venturelli, a Circular Economy Consultant at the African Circular Economy Network Foundation (ACEN) highlighted partnerships with the private sector to mobilize public and private resources for infrastructure development in the blue economy. He stressed the importance of information exchange on investments or initiatives related to nature conservation and climate change and proposed the creation of an Africa Circular Economy Facility to mobilize more resources for the blue and circular economy.
Mr. Venturelli also emphasized the need for subsidies and guarantees to support island states in their efforts to strengthen the blue economy, in addition to increasing human resources.
“Governance is key to supporting partnerships and mobilizing people at different levels of employment,” he noted.
Ms. Fwangkwal Bonmwa, Senior Coordinator, Circular Economy Program at the African Development Bank emphasized creating space for policy implementation and being open about criteria and stressed the need “to link government roadmaps to actionable policies and sectors aiming for implementation, rather than just approval.”
Ms. Bonmwa highlighted the role of alliances as they promote the circular economy and encourage government participation to share knowledge and policy effectively. “Circular economy is an emerging topic in Africa, and alliances serve as central platforms for sensitization, engagement, information flow and knowledge sharing for policy engagement,” she said.
Charlotte de Fontaubert, Global Blue Economy Leader on sustainable and integrated development of oceanic sectors in healthy oceans at the World Bank highlighted the benefit of strengthening local circular economies, including local processing and recycling to reduce carbon footprint.
Ms. Fontaubert proposed redefining of the circular economy beyond recycling and processing, to include the reintroduction of materials into the system, encouraging local companies to find synergies with other factors to reduce material consumption and achieve a closed-up system.
“Training relationships managers on the concept of circular economy and sustainable finance is needed, to ensure consistent communication and implementation,” she said.
For her part, Florence Houtte, Team Leader, European Union Delegation Mauritius and Seychelles highlighted the mismatch between available finance and project needs, highlighting the success of summer programs in Mauritius, which provide loans and legal assistance for climate action projects.
She emphasized the importance of developing a sustainable finance ecosystem through technical assistance and incubators to support SMEs and long-term educational initiatives and also outlined the role of local intermediaries, such as national banks, in facilitating international investments to scale up initiatives and address challenges.
“In Mauritius, the focus is to develop a sustainable finance ecosystem with the Mauritius Association of Businesses. Long-term educational initiatives foster an understanding of the circular economy among companies and policymakers.”
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