Do you know why Fetola is focused on the circular economy? It’s because circular methods are both business sense and good for the planet. The three core principles of circularity are simply to reduce waste, keep materials in use and regenerate healthy ecosystems. Let’s explore these three in a little detail:

Reducing wastage is music to any business leader’s ears, for when you cut down waste of materials, energy, and water, this brings greater profit. Keeping materials in use means extending the lifespan of your products through repair, re-use, rental, and refurbishment. For many businesses, this thinking offers their business potential new revenue streams. For example, a furniture manufacturer can add a repair and a rental line. A computer company can add a repair, refurbishment and exchange option… and still send the end-of-life computer to an e-waste company for deconstruction and recovery of precious metals, glass and plastic.

Regenerate includes actions such as converting farm land depleted by modern mono culture and use of chemical fertilisers into wholesome, healthy soil, that can sustain crops with less dependency on costly inputs. As we see the price of oil/ diesel/ fertilisers soar, this type of option becomes even more appealing.

For many entrepreneurs, this is the realm of common sense, with results that are remarkable. In 2023/4 Fetola piloted the Circular Economy Accelerator in 47 MSMEs from a wide range of sectors, from farming to training, and waste recovery to furniture manufacture. Reported results include revenue growth twice as strong as that of businesses that didn’t know about the circular economy, and profit margins increased by 77%.

More than that, as the circular economy is built on beneficial local networks and the 5 R’s of repair, recover, refurbish, rental and reuse, are job -creating opportunities, this value stays local in the form of jobs. The added benefit is to the environment and the future planet we are leaving for the next generation, for when we reduce our waste – carbon, water, and pollution, we contribute to a healthy future.

What we have proven, and what excites me personally, is that circular business practice is good for business, for people and the planet.

And the final upside is… businesses that measure and report their impact create a currency that is valued by investors. This evidence of good practice gains the trust of investors and opens access to green growth capital.

Circular models flip the economics: delivering lower lifecycle cost + lower environmental impact + greater local benefit. This is a win-win-win triangle we can all use to place our economy as leaders on the continent.

What does this mean to you? Let us know what excites you….or what concerns you have about this model of business.