Access to finance and market channels remains a major obstacle for Ethiopian entrepreneurs seeking to convert waste and underused resources into commercially viable products, according to business leaders and policymakers speaking at the World Circular Economy Forum 2026 Ethiopia Studio in Addis Ababa. Forum participants highlighted a significant structural gap between conceptualizing circular-economy ideas and scaling them into operationally sustainable businesses, pointing to constraints in technology, skill development, infrastructure, certification, and the broader commercial environment.
Supporting organizations emphasized the financial and logistical demands faced by early-stage green ventures. Mekdim Gullilat, Country Manager of Reach for Change Ethiopia, noted that circular enterprises are inherently capital-intensive once operational, facing complex challenges in waste collection, quality control, sorting systems, and supply chain reliability.
Through its three-year Building Waste and Circular Enterprises in Ethiopia project, launched in 2024, Reach for Change has supported 74 idea-stage entrepreneurs, each receiving USD 1,500—41 of whom successfully established businesses—and 25 growth-stage green enterprises, each receiving USD 10,000. These supported businesses have generated over ETB 41 million in revenue, processed nearly two million kilograms of waste, and created 1,604 jobs, with women occupying approximately 53 percent of the roles. Highlighting high-potential sectors such as plastic recycling, organic agricultural waste, sustainable packaging, construction materials, and textiles, Mekdim called for clearer waste-management regulations, green business incentives, standardized certification, and stronger public-private partnerships.
These operational constraints align with broader market challenges as Ethiopia transitions toward implementing its 10-year National Circular Economy Roadmap, approved in 2025. Biruk Yosef, Board Chairperson of the Ethiopian Association of Startup Ecosystem, emphasized the need for early-stage financing mechanisms tailored to circular models, noting that recycled products must ultimately prove their quality and market competitiveness. To support this transition, the Ethiopian Environmental Protection Authority (EPA) has established inter-ministerial agreements across 10 major sectors, targeting high-impact industries including agriculture, packaging, construction, manufacturing, textiles, and leather. Additionally, local government efforts are advancing infrastructure developments, such as the Circular Economy Excellence Center in Bole Arabssa, designed as a hub for research, training, technology transfer, and private-sector demonstration models.
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Despite policy progress and local enterprise success—such as up-cycling company AndeMama, which has recycled over 5,000 forms of paper and produced 30,000 handicraft items while engaging thousands of institutional cleaners and home-based workers—entrepreneurs continue to confront consumer skepticism regarding product durability, material sourcing difficulties, and limited growth capital. As the EPA moves from planning to full implementation, officials and industry leaders agree that bridging the gap between national circular policy and commercial execution will require expanded extended producer responsibility, integrated waste-recovery systems, and accessible financial frameworks to help green enterprises achieve regional scale.