The Republic of Benin launched the National Circular Economy Action Plan (PAEC) in February 2026, in partnership with the African Development Bank. PAEC serves as a roadmap for the country’s transition from a linear economy to a circular economy by 2035. This roadmap promises to foster 300 circular businesses and attract investment in the green economy. The Benin government has a pattern of collecting only a fraction of the waste and disposing of it irregularly, which increases public health risks. To prevent this hazard from becoming a public health crisis, the government must recognize waste as a tradable commodity, enable private firms to collect market-driven fees, and lower barriers to entry for startups.
The reality of the PAEC as a solution for waste management, though applaudable, is a trap. In Grand Nokoué, state workers collect only a small amount of waste, focusing on the most developed part of the region, while rural areas remain underserved. The state’s abandonment of other regions leaves room for diseases to spread. A public health crisis is imminent if the abandonment continues. Benin will lose billions of dollars in investment in waste recycling, which is one of the PAEC’s sole purposes, a government-led initiative.
Benin should recognize waste as a tradable commodity rather than state property. The government should secure property rights for informal collectors and startups by creating an incentive to turn waste into profit. For example, the government can explicitly state that collectors are the owners of any plastic they recover for recycling. This incentive will improve public health and help prevent crises such as cholera, dysentery, and diarrhea.
In South Africa, the government has formally recognized waste collectors and established buy-back centers across the country where they can trade their finds. Benin can replicate this model to achieve its 2035 goal of a circular economy. Replicating this model will enable local innovators to be more creative in waste management, scale up the recycling industry, and attract investment.
It is in Benin’s best interests to adopt a system that allows private firms to collect market-driven fees directly from clients. Private firms should not rely on government subsidies and freebies to set fees. Allowing businesses to set fees based on the worth of their work would improve their service delivery. There could even be a healthy competition on which business cleans properly or arrives on time.
In Accra, Ghana, since 1997, private contractors have gradually taken over waste collection under a fee-based system, which has lessened the government’s burden of waste management. Allowing the market to set prices for waste services will lead to more sustainable revenue.
The Benin government should lower barriers to entry for waste collection startups. The government can create regulatory sandboxes, as the Central Bank of Nigeria does for startups. There should be an exemption from burdensome licensing and import duties on recycling machinery for green startups for their first three years. Exempting green startups from import duties and from the heavy financial requirements of licensing will spur their productivity and up-scaling. This exemption will help startups gain stability in their foundational years, maximize profit, and sustain their businesses. The long-term benefit for Benin will include proper waste management and a healthier environment.
Benin should shift waste management from the state to private entrepreneurs. This shift will enable competitive pricing, reduce regulatory costs, and advance Benin’s circular economy.
Hannah Omokafe Dennis is an African Liberty Writing Fellow.
Article first published by BusinessDay.
Photo by Pawel Czerwinski on Unsplash.
