Can transitioning from a linear to a circular food system accelerate progress toward impending climate goals and job creation? Is there a business case for investment in circular business models that improve efficiency and reduce waste?
What role can entrepreneurs and enterprises play in this transition to a more circular food system?
Corporates, governments, and donors have begun to explore questions such as these, evaluating the potential of micro, small, and medium-sized enterprises (MSMEs) and regional supply chains to drive the adoption and scaling of circular business models across Africa. In the past several years, many independent initiatives have sprung up across the African continent, taking varied approaches toward similar goals. The common theme among these programs seems to be an aim towards accelerating the transition to a more circular food system with a focus on entrepreneurs and industry, establishing the business case for employing more circular and resource efficient practices.
Here we explore some examples of recent initiatives in the circular food systems space across East Africa and discuss our vision for a collective impact initiative that brings a coordinated, systems approach to circular food systems transformation.
Meet some of the East African Circular Food Systems Initiatives Leveraging the Power of Entrepreneurs
Circular Food Systems for Rwanda
The Circular Food Systems for Rwanda (CIRF) project was funded by Ikea Foundation to leverage Rwanda’s momentum around enacting several circularity-related policies to implement a locally-led small business development program that would foster the growth of circular business practices in the agri-food system. Resonance has supported World Resources Institute (WRI) on the design and implementation of the Circular Food Systems for Rwanda project since 2021 along with a consortium of regional partners including African Circular Economy Network (ACEN) and Cleaner Production and Climate Innovation Center (CPCIC). The project is currently implementing the CIRF Technical Assistance Facility, matching agri-food SMEs to circularity-specific technical assistance providers to develop a specialized three-month circular business development plan.
The thesis of the CIRF project is largely whether there is, in fact, a business case for circularity. The project pilots an approach that argues that circular business practices can accelerate growth, enhance competitiveness, and mitigate risk, ultimately reducing loss and waste in the food system while also helping SMEs to scale and attract capital. The approach places a heavy focus on circularity-specific training, prioritizing building expertise in circularity and complimenting these services with the typical business and financial skills as needed. By the end of 2025, the CIRF project will have delivered circular technical assistance to 20 agri-food SMEs in Rwanda.
USAID’s Feed-the-Future Food Loss and Waste (FLW) Accelerator
In September 2023, USAID announced a $10 million investment to launch the Food Loss and Waste Accelerator to collaborate with partner country policies and businesses to reduce food loss and waste and bolster food security – aiming for a “triple win” of food security and nutrition, climate resilience, and economic development. In this Accelerator, USAID provides co-financing for circular investments and strategies that minimize production waste and post-harvest losses, an innovative financial approach offering two-year payment-for-results partnerships to help companies de-risk their investments in mitigation strategies to reduce waste. To date, USAID has awarded more than fifteen partnerships through this program.
Biovision and Shona’s Neycha Accelerator and Fund
Biovision and partner organization Shona launched the Neycha Accelerator and Fund in 2023 to provide capacity building, networking and access to capital for agroecological enterprises including farms, cooperatives, and inputs producers who help to transform food systems while creating value and jobs in Uganda and Kenya. These types of businesses struggle to access financing and meet the demands of traditional financial organizations at their small size, and the founding partners built the Neycha program to invest in “the agroecological business case”. Taking this blended approach, the Neycha project argues that this support will allow businesses to strengthen and access larger follow-up investments.
O-Farms Accelerator Program
O-Farms is another African accelerator program funded by the Ikea Foundation led by Bopinc and Village Capital focused on scaling circular agribusiness innovations in East Africa. Participants of the O-Farms program receive a tailored circularity curriculum, technical assistance, and mentorship to help them strengthen their circular business models and better access finance. Two peer-selected SMEs from their second cohort will receive milestone-based grant funding up to 25,000 EUR. This program is implementing a blended approach to accelerating circular business models, placing weight on building capacity within organizations with technical assistance, but also utilizing innovative financing methods to amplify results.
IGNITE Food Systems Challenge 2.0
Impact Hub Kigali and the UN World Food Programme, with support of the USAID BHA and Danish Ministry of Foreign Affairs, have created the IGNITE Food Systems Challenge, supporting scaling of MSMEs with solutions to address gaps in the food system. In the second iteration of the challenge, the program targeted businesses working in gender transformative food systems or circular economy solutions. The program provides selected ventures with equity-free funding up to $30,000 per venture, four months of curated technical support to strengthen business skills and address gaps, and networking and exposure opportunities. IGNITE 2.0 supported eight ventures with core business training and mentorship to accelerate these inherently sustainability-focused solutions into more formidable businesses with opportunities to scale and support their communities.
Time to Scale
Significant time and financial investment have been put into developing and scaling circular solutions in recent years, with several programs making the case that entrepreneurs can play a central role in the transition to a more circular food system in Africa. Across various programs, we are seeing entrepreneurs develop innovative solutions to reduce food loss and waste, fill gaps in the value chain, and mitigate the effects of climate change while creating jobs and opportunities in their communities.
It is now time to begin connecting the dots between these pilot initiatives, scaling the efforts that are most successful, measuring the impacts on communities and the environment, and channeling funding strategically. Resonance, Ikea Foundation and World Resources Institute (WRI), recognized the need for a cohesive path forward for initiatives targeting circular enterprises, and brought together 50+ key food systems stakeholders in May 2024 to co-create a white paper laying out a clear pathway for accelerating the circular economy in food systems in Africa with entrepreneurs and innovation at its core, called Accelerating the Circular Economy for Food (ACE4Food).
Together, we envision ACE4Food as a Collective Impact Initiative, joining accelerators, programs, and stakeholders together under shared goals to provide some systems leadership, impact measurement, and a clear and vibrant path for circular food systems transformation in Africa.
Photo Credits: Katie Garner/World Resources Institute
Read more about Circular Food Systems Here:
- Introducing ACE4Food: Accelerating the Circular Economy for Food in Africa
- Circularity: Addressing the Waste Problem
- How Companies Can Lead the Transition to a Circular Economy for Food
