The Economics of Waste in African Cities

When most people think about waste in African cities, the first images that come to mind are overflowing dumpsites, clogged drainage systems, and mountains of plastic bottles. 

But here’s the truth: waste isn’t just an environmental headache. It’s an economy in itself. 

Every plastic bottle, food scrap, or aluminum can that ends up in a landfill represents lost value, and in a continent that is rapidly urbanizing, that loss is massive.

According to the World Bank, Africa’s urban population is expected to triple by 2050, and with more people comes more waste. Cities like Lagos, Nairobi, Accra, and Johannesburg are already struggling to manage their growing piles of trash. 

But if we shift the lens and look at waste as an economic resource instead of a nuisance, we’ll see opportunities for jobs, revenue, and innovation.

This article looks at the economics of waste in African cities — what waste costs, how it creates value, and how it could shape Africa’s sustainable future.

The Cost of Waste Mismanagement

Mismanaged waste doesn’t just look bad; it’s expensive. 

For African cities, the cost of failing to deal with waste properly shows up in three major ways:

1. Financial Burden on Governments:

Collecting and transporting waste eats up a large share of municipal budgets. In many cities, waste management takes 20–50% of total municipal spending

Yet, despite this expense, only about half of urban waste is actually collected, according to UN-Habitat.

2. Hidden Costs of Pollution:

Clogged drains lead to floods during rainy seasons. Open dumpsites release toxic fumes, and poorly managed landfills contaminate groundwater. 

The result? 

Billions lost in health care costs, disaster recovery, and reduced productivity.

Take Accra, Ghana, for example. The city spends millions cleaning up after floods, much of which is caused by plastic waste blocking drainage systems.

3. Impact on Tourism and Investment:

Dirty cities discourage investors and tourists. A city with piles of trash and polluted beaches doesn’t attract international business or visitors. 

That’s money lost for local economies.

In short, ignoring waste is more expensive than managing it well.

Waste as a Resource

Here’s where the conversation gets interesting: waste isn’t just a cost — it’s also a resource. 

Think about it. 

Every plastic bottle can be recycled into a new product. 

Organic waste can become compost or biogas. E-waste contains valuable metals like copper and gold.

– The Informal Recycling Economy:

Across African cities, thousands of waste pickers collect and sell recyclables daily. While often overlooked, these workers form the backbone of the informal recycling economy

In Lagos, for example, waste pickers are responsible for recycling thousands of tons of plastic each year. 

They may not be formally recognized, but their work contributes millions of dollars in value.

– The Circular Economy Potential

Instead of a “take, use, throw away” model, African cities can embrace the circular economy — where materials are reused, recycled, or repurposed. 

According to the African Development Bank, circular practices could generate millions of green jobs while reducing environmental damage.

A good example is Safisana, a Ghana-based company that turns organic waste into energy and fertilizer. This way, what looks like trash becomes a valuable input for other sectors.

The Business of Trash: Private Sector and Startups

Trash is big business. And across Africa, entrepreneurs are finding creative ways to turn waste into profit.

– Innovative Businesses:

  • Plastic Bricks: Companies like Gjenge Makers in Kenya are transforming plastic waste into strong, affordable building materials. This solves two problems at once: waste management and housing shortages.
  • Waste-to-Energy Projects: In countries like Ethiopia and South Africa, waste is being converted into electricity through incineration and biogas plants.
  • Upcycling Fashion: Startups are using textile and plastic waste to make bags, shoes, and accessories for eco-conscious consumers.

– Challenges Facing Waste Startups

Despite the potential, waste businesses face serious obstacles:

  • Lack of funding and investment.
  • Weak policy support.
  • Difficulty in scaling beyond small communities.

Yet, the potential is undeniable. 

Every ton of waste that is transformed into a product or energy source reduces landfill use and creates jobs.

Jobs in the Waste Economy

Waste isn’t just about money — it’s about livelihoods. 

Millions of Africans make a living from waste collection, sorting, and recycling.

– Informal Sector Contribution:

According to the International Labour Organization, the informal waste sector employs millions across Africa. These workers often face poor conditions, but their contribution is crucial. 

In South Africa, for instance, informal waste pickers save municipalities millions in collection costs by diverting recyclables from landfills.

– Formalizing the Waste Sector:

Imagine if waste pickers had access to safety equipment, training, and fair wages. 

Formalizing waste work could turn it into a dignified green job sector, creating stable income while cleaning up cities.

– Youth and Entrepreneurship:

Africa has the world’s youngest population. 

Waste-based entrepreneurship — like recycling startups, upcycling fashion, and composting businesses — offers young people opportunities to innovate and create jobs in a sector with growing demand.

Policy, Regulation, and Governance

No matter how many waste entrepreneurs or recyclers exist, without solid policies and governance, the system won’t work.

– Current Policies

Many African countries have waste management laws, but enforcement is often weak. 

For example, while plastic bag bans exist in countries like Rwanda, Kenya, and Tanzania, illegal imports still enter markets.

– Extended Producer Responsibility (EPR)

One promising approach is EPR, where companies that produce plastic or electronic goods are required to take responsibility for the waste they create. 

South Africa already has EPR schemes in place for plastics and packaging, and this model could be scaled across the continent.

– Incentives for Recycling Businesses

Tax breaks, subsidies, or grants for recycling startups could encourage more private sector involvement. 

Without these incentives, most startups struggle to grow.

Environmental and Social Externalities

Ignoring waste is not just an economic issue — it’s an environmental and social one.

– Environmental Costs

Open burning of waste releases harmful greenhouse gases. Plastics end up in rivers and oceans, affecting fisheries and biodiversity. 

The United Nations Environment Programme (UNEP) estimates that plastic pollution alone costs the world $13 billion annually in damages to ecosystems.

– Social Inequalities

Poorer communities usually live closer to dumpsites and suffer the most from pollution and disease. 

This makes waste not only an economic and environmental problem but also a justice issue.

– Community-Led Solutions

In cities like Kampala and Dar es Salaam, community-based organizations are leading grassroots waste collection and recycling projects. 

These solutions show that when people take ownership of their environment, both the economy and quality of life improve.

Case Studies of Success

1. Rwanda: Plastic Ban

Rwanda is often called the “cleanest country in Africa.” Since banning plastic bags in 2008, Kigali has become a model of waste policy enforcement. 

The economic benefits include improved tourism, healthier citizens, and a stronger international image.

2. South Africa: PET Recycling Success

South Africa has one of the most advanced recycling systems on the continent, particularly for PET plastic bottles. 

Organizations like PETCO have created an industry where waste has real market value.

3. Ghana: Waste-to-Energy Projects

Ghana has invested in projects that convert organic and municipal waste into energy, reducing landfill dependence and providing renewable electricity.

These examples prove that African cities can turn waste into economic opportunity with the right mix of policy, innovation, and community involvement.

In Conclusion

At the end of the day, waste in African cities is more than garbage. It’s an untapped economic engine waiting to be harnessed. 

The cost of mismanagement is high, but the potential benefits of viewing waste as a resource are even higher.

If African governments, businesses, and citizens come together, waste could shift from being a financial burden to a driver of economic growth, job creation, and environmental sustainability. 

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