Circular economy solutions 
for green growth in Ethiopia  

Ethiopia’s fast-growing economy driven by industrialisation and agribusiness expansion presents both opportunities and challenges. While sectors such as horticulture, agricultural processing, and manufacturing continue to create jobs, the rise in production has led to increased waste generation, inefficient resource use, and mounting pressure on natural ecosystems. Companies also face high production costs, limited access to sustainable technologies, and a shortage of skills for implementing environmentally friendly business models.
 

At the same time, the country has strong potential for circular economy solutions. Agricultural by-products, plastic waste, and industrial residues can be turned into value-added products, unlocking new economic opportunities. Small and medium-sized enterprises (SMEs), innovation-driven startups and SME cluster sites stand to benefit significantly from green business practices that create jobs while reducing environmental impact.

To address these challenges, Invest for Jobs supports private companies in adopting circular economy models. The programme works on the entire value chain, from modernising recycling collection through innovative IT solutions, strengthening usage of agricultural and plastic waste in production, to developing innovative new products such as production of paper out of banana waste, or animal feed out of avocado waste. Through these partnerships, the groundwork for a greener and more competitive Ethiopian economy is being laid.  

Invest for Jobs partners with several companies to demonstrate how circular business models can deliver both environmental and economic benefits:

• SIZ Agro PLC, an avocado processing company, turns avocado by-product waste into animal feed. Supported by Invest for Jobs and the South Ethiopia Industrial Parks Development Corporation (SE IPDC), SIZ Agro developed the new product, conducted laboratory analysis with Dilla University and procured machinery to begin full scale production.
• Sewasew Biodegradable produces eco-friendly paper and packaging materials using agricultural waste from banana plantations. Some of their products are sold to 5-star hotels in Addis Ababa. Together with the SE IPDC, five micro enterprises were established to manage fibre extraction, which created up to 45 green jobs so far.
• Tumma Plastic Factory substitutes up to 40 per cent of imported polymers with locally recycled materials. Supported by the Central Ethiopia Industry Parks Development Corporation (CE IPDC), the company receives technical support to improve plastic waste collection, product diversification and production technology, serving as a model for other cluster-based manufacturers.
• AGG Recycling collects discarded plastic bottles and turns them into useful household products such as brooms and brushes. AGG benefited from business plan development assistance and the procurement of small machinery to diversify its production and improve production efficiency.  
• YouCan developed a mobile application and logistics system that enables households to sell their recyclable waste to trash collectors through a bidding system. By connecting collectors with recycling collection centres and factories a comprehensive app-based circular process is established.
• WODA Metals and S&Y are advancing Ethiopia’s shift toward electric mobility. Both companies assemble electric Bajaj (TukTuks) for local transport of people and goods. They also train young technicians in electric vehicle assembly and maintenance, contributing to the development of skills for the country’s green transport sector.