Ethiopia at the Forefront of Circular Economy: Driving Sustainable Growth and Innovation
Addis Ababa hosted the Circular Economy Hotspot 2025 on Wednesday, October 1st, marking a major milestone for East Africa’s sustainable development and green transition. The event brought together policymakers, private sector leaders, civil society, and international partners to explore how circular economy principles can unlock trade, investment, and innovation opportunities across the continent.
A Platform for Green Trade and Investment
The Circular Economy Hotspot 2025 was more than an environmental conference — it served as a strategic platform for building new value chains, attracting foreign investment, and supporting industrial transformation. Ethiopia’s leadership in organizing this global event reflects the region’s growing ambition to shift toward sustainable production and consumption models.
For Swedish businesses and investors, the event provided a valuable opportunity to connect with forward-thinking East African entrepreneurs and institutions driving change. With a shared focus on innovation, digitalization, and green technologies, Sweden and East Africa are natural partners in advancing the circular economy agenda.
Addressing Barriers to Progress
While the event highlighted enormous potential, it also underscored the regulatory and financial challenges that continue to slow the growth of the circular economy in Ethiopia. According to Capital Ethiopia, limited access to finance, insufficient regulatory incentives, and a lack of clear policy frameworks remain major obstacles for businesses seeking to adopt circular models.
Key barriers include:
Limited financial mechanisms tailored to circular economy ventures
Unclear or fragmented regulations on recycling and material reuse
Low investor awareness and confidence in circular business models
The absence of supportive tax and policy incentives
Addressing these challenges will require closer coordination between government institutions, financial actors, and the private sector. Strengthening these linkages is essential to ensure that Ethiopia’s circular economy ambitions translate into scalable and bankable opportunities.
Swedish Engagement Through Entrepreneurship
Sweden’s commitment to sustainable growth in Africa is already visible through initiatives such as Reach for Change and the IKEA Foundation, which support social entrepreneurs across the region. Recent examples include Seven Lakes, Green Drops, and Lazinu — East African ventures pioneering local solutions to environmental and social challenges. These enterprises illustrate how innovation can both create impact and stimulate cross-border trade and investment.
Strengthening the Sweden–East Africa Partnership
Sustainability is not only a responsibility — it’s a competitive advantage. The growing cooperation between Sweden and East Africa demonstrates how circular economy principles can drive inclusive growth, new trade corridors, and long-term business opportunities.
As the Swedish East African Chamber of Commerce (SWEACC), we see the momentum around the Circular Economy Hotspot as an important opportunity to deepen collaboration between our regions. By fostering dialogue, connecting investors, and supporting sustainable enterprises, we aim to ensure that Swedish expertise and technology contribute meaningfully to East Africa’s green transition.
SWEACC Ethio-Sweden Business Forum 2025
Building on this momentum, SWEACC is excited to host the Ethio-Sweden Business Forum in Addis Ababa on 12–13 November 2025, together with the Embassy of Sweden in Addis Ababa, the Embassy of Ethiopia in Sweden, and Business Sweden.
This two-day forum will feature:High-level keynotes, Sector-specific roundtables, Investor matchmaking, and Networking sessions.
The event offers Swedish and East African businesses a unique platform to explore partnerships in green energy, digital transformation, healthcare, logistics, and more.
Secure your spot for the Ethio-Sweden Business Forum: Event Details & Registration