Who would have thought that trash could be a business opportunity? In 2016 alone, sub-Saharan Africa generated 174 million tonnes of municipal solid waste (MSW). While 70% to 80% of this waste is recyclable, only 4% is actually processed and repurposed. Projections by the African Clean Cities Platform indicate that waste production will skyrocket to 244 million tonnes by 2025, exacerbating an already critical issue.
Between 2016 and 2019, East African countries saw a sharp rise in waste generation, with Kenya recording a 28% increase, Tanzania 48%, Uganda 45%, and Ethiopia leading with a 94% surge.3 Despite this rapid growth, most of the region's waste remains organic and largely uncollected, recovered, or recycled, except in some capital cities. This widening gap in waste management infrastructure underscores the urgent need for scalable recycling and recovery solutions. However, this growing waste crisis is not just an environmental challenge, it is also an untapped economic opportunity. Innovative startups have the potential to transform discarded materials into valuable resources, paving the way for a sustainable, circular economy while creating jobs and reducing pollution. The question now is: who will seize this opportunity to turn waste into wealth?
According to Mordor Intelligence, the African waste management market is projected to reach USD 44.11 billion by 2025 and grow to USD 59.37 billion by 2030, reflecting a CAGR of 6.12% during the forecast period. Sub-Saharan Africa alone generates 180 million tons of waste, accounting for nearly 9% of global waste production. This highlights the untapped potential of the waste management sector, presenting a lucrative yet underdeveloped industry with vast opportunities for startups, investors, and governments to drive sustainable solutions and economic growth.
Source: Mordor Intelligence, Africa Waste Management Market | 2022 - 27 | Industry Share, Size, Growth
Waste management remains a significant challenge in East Africa, with inadequate infrastructure and low recycling rates hindering progress. According to Startup List, key players in the region include Sanergy, which leads in waste collection and treatment, while nextProtein and Cambridge Industries focus on converting waste into animal feed and construction materials. Local business leaders recognize the potential of waste-to-energy projects, emphasizing the need for collaboration between the government and the private sector to drive sustainable solutions.
In terms of investment, the cumulative funding for waste management startups across Africa stands at $56.9 million, supporting 25 companies through 37 deals. However, investment levels in East African countries vary significantly. Kenya leads the region with $30.1 million in funding, supporting two companies across 11 deals. Ethiopia follows with $12.7 million, one company, and three deals, while Ghana has $2.7 million, one company, and three deals. Other countries are lagging,Tanzania has just $200,000 in funding, one company, and one deal, while Rwanda has a registered company but no funding or deals. Uganda has no active funded startups, underscoring the disparities in investment and development across the region.
Environmental Impact: Proper waste disposal and recycling reduce pollution across land, air, and water, protecting ecosystems while lowering methane emissions from landfills—one of the biggest contributors to global warming. By promoting a circular economy, waste can be repurposed into new materials, reducing reliance on raw resources and minimizing environmental degradation.
Economic Impact: The waste management sector has the potential to create thousands of jobs, ranging from waste collectors to recycling plant operators and entrepreneurs. By using recycled materials in manufacturing it reduces import dependency and strengthens local industries. Moreover, sustainable businesses in waste recycling and upcycling attract funding from impact investors, governments, and NGOs, fostering economic growth and job creation.
Health and Sanitation Improvements: Proper waste management eliminates breeding grounds for mosquitoes, rodents, and bacteria, lowering the risk of diseases like malaria and cholera.
Social and Community Development: Many African waste startups empower informal waste collectors by formalizing their work, improving their income and working conditions. Additionally, they promote environmental awareness and sustainable waste practices among businesses, communities, and individuals, driving positive social and community development.