Assessment of Enabling Factors of The Circular Economy Practices in Rwanda - Case of Food Manufacturing Industries of Kigali Special Economic Zone

Volume 8, Issue 4, April – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Assessment of Enabling Factors of the Circular

Economy Practices in Rwanda – Case of Food
Manufacturing Industries of Kigali Special
Economic Zone
1
Sylvie Mugabekazi
2
Dr. Christophe Mupenzi
I. INTRODUCTION have been adopted at various scales, including the macro

scale, which is representative of actions done by cities,
Globally, as the human population expands and wage regions, and countries, the meso scale, which is
levels rise, more resources are being used by humans representative of a network of businesses, and the micro
(Behrens et al., 2007; Dobbs et al., 2011). The global scale, which corresponds to the view of products and firms
ecosystem is under alarming pressure from pollution and the (Ghisellini et al., 2016). Additionally, it has drawn more
natural resources scarcity to meet human needs. These attention from policymakers in developed nations as well as
elements simultaneously have a significant impact on the from international organizations like the United Nations, etc.
prices of energy and material goods as well as the volatility (Lacy et al. 2014; COM, 2015).
of their market prices (Benton and Hazell, 2013; Defra,
2012; Ecorys, 2012). According to the OECD (2019), by The possible advantages of adopting a circular
2060, the usage of primary materials will have doubled, economy strategy in low- and middle-income nations have
totaling 167 gigatons. By 2030, it is predicted that there will largely been disregarded. In order for these nations to
be 2.59 billion tons of waste generated annually, and by achieve the Sustainable Development Goals (SDGs)
2050, there will be 3.40 billion tons of waste produced objectives, it is urgent that they implement this strategy
globally (Ellen MacArthur Foundation, 2015). By balancing (Anthony and Sandra, 2021). Circular economy practices in
goals for economic development and environmental developing nations have, however, recently come to the
protection, the circular economy positions itself as the attention of scholarly researchers (Chertow and Park, 2016)
answer to all of these problems and also a variety of and professionals working in international development
countermeasures have been suggested in order to seek more (Gower and Schröder, 2016). Many papers have been
sustainable development (WCED, 1987). Given that the published citing circular economy case studies in developing
manufacturing sector is one of the most resource- and nations like India, Brazil, Kenya, and Ghana, etc., which
environment-intensive sectors of the economy (Halstenberg show how supporting circular economy business models can
et al., 2017), this has an impact on not only consumer help to a three-way win: Productivity enhancement and
behavior but also on industrial players, including increased economic growth, improvement of employment
manufacturers. quantity and quality.
On the other hand, in order to address the difficulties Most Rwandan businesses continue to operate using
brought about by waste generation and accumulation in the traditional "take, make, dispose" model of consumption
recent years, the alternative concept of a "circular economy" and production and are largely ignorant of the business
has been put forth as a remedy to the environmental opportunities related to CE. The idea of CE is not getting
problems created by inadequate waste management and much attention in the research community in Rwanda
resource management. A circular economy aims to promote (Whyte et al., 2020). The National Circular Economy
the use of materials in manufacturing processes in a circular Action Plan, which was released in December 2022 during
manner (Geissdoerfer et al., 2017). CE is "an industrial the World Circular Economy Forum, is among the
economy that is restorative and regenerative by intention government's actions that represent the circular economy.
and design," according to the Ellen MacArthur Foundation The plan lays out specific guidelines for Rwanda's transition
(2012). Its three guiding concepts are to maximize resource to a circular economy, which will eventually help the
yields, protect and enhance natural capital, and promote country realize its long-term goal of Vision 2050 (Ministry
system efficiency (Ellen MacArthur Foundation, 2015). By of Environment., 2022). Additionally, the Government of
slowing, closing, and narrowing resource loops, CE aims to Rwanda recently released the Revised Green Growth and
reduce resource usage (Geissdoerfer et al., 2017; Wang et Climate Resilience Strategy (Revised GGCRS) (Goverment
al., 2018). The concept of the circular economy has gained of Rwanda, 2023). The updated GGCRS aims to advance
increasing popularity over the years as an effective strategy green industry and private sector investment to help better
to achieve sustainability at a global, national, and local the business and industrial environment. In addition, the
level. According to Ghisellini et al. (2016), CE principles Cleaner Production and Climate Innovation Center, a
IJISRT23APR2313 www.ijisrt.com 2360

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division of Rwanda's National Industrial Research and researcher to assess all 17 food manufacturing industries by
Development Agency (NIRDA), was established in 2017 asking one of the top managers on each industry as a
and is in charge of all CE-related operations aside from representative respondent. In addition, as provided
research (Whyte et al., 2020). In order to address the growth explained by the main reason to select this size of the
of the industries, Rwanda created a national industries population has the particular set of characteristics being
policy (MoIT, 2011). As a result, applying the principles of food manufacturing industries and their number is
the circular economy is essential if the country is to reap typically very small.
their long-term benefits. However, over time, many low-
and middle-income countries have paid relatively little The researcher had original set of questions to
attention to the circular economy idea (Anthony and Sandra, investigate. The questionnaire mainly was categorized into
2018). The circular economy concept is present in Rwanda's Company demography, Respondent CE awareness, the
policies and behaviors, but little is known about it. There are waste streams in industries and the strategies to manage
no assessments about the circularity across all sectors to them, and circular economy enablers/barriers (table and
know the extent at which the circular economy is figure and appendix). The waste streams to be examined
implemented and the gap between the Circular economy and were predetermined and it includes Plastics, Organic solid
traditional linear economy model. In order to maintain the wastes, Organic slurry, Paper and paper board, Air
global perspective of this idea, adequate circular economy pollutants, Oil residues/grease, Wastewater, and Other. The
research activities are needed to monitor the development company examined had to have at least one of them to allow
and serve as the benchmark. In light of the circular economy to go further for examination based on waste management
principle, this study seeks to determine the degree of strategy (Rs: Reduce, Reuse, and Recycle; and Disposal).
circularity within Rwandan industries by assessing the state The assessed set of potential enablers were pre-determined
of waste management strategies and the factors that support from the literatures and the waste streams together with
them. waste management strategy within the industry was pre-
identified according to the nature and type of the industry.
This paper aims to fill the gap by identifying the
enabling factors that facilitate the implementation of circular The enablers were the management willingness, technology
economy principles within the food manufacturing and skills, finance and investment and Government Policies
industries in Rwanda in the case of In Kigali Special (legislations and incentives). The questionnaire was
Economic Zone (KSEZ) Located in Kigali city- Gasabo designed to maximize the accuracy of the target information.
district. The practices that represent the circular economy During the data analysis the set of the responses from the
were investigated to ascertain how much the circular interviewee was analyzed based on interpretative
economy enablers are influencing Rwanda's food classification. The researcher gathered all the field
manufacturing sectors. information toward the coherence between the circular
economy enablers and the circular economy practices found
II. METHODOLOGY in the food manufacturing industries.
In this study, a survey research methodology was used Both the descriptive statistical technique and
to provide a quantitative description of trends, attitudes, or interpretive measures were used to watch and analyze the
opinions about enablers of circular economy practices in ideas and viewpoints expressed by the companies. By using
food manufacturing industries (Creswell, 2017). By using statistical percentages and averages were used to summarize
Kigali Special Economic Zone as a case study, this research and depict the circularity in the study area. MS Excel 2016
sought to evaluate circular economy enablers in Rwanda's computer program was used for statistical data processing.
food manufacturing sectors. Up to date of survey there was Specifically, the statements made while filling the form
exist about 200 companies in Kigali Special Economic in linked to enablers previously noted in the study literature.
different manufacturing process and services. 17 of them are By categorizing the enablers to CE practices according to
food manufacturing industries, and thus constitute the the companies' point of view and using benchmarking
research target population. all 17 food manufacturing enablers derived from the literature, these approaches met
industries were considered as sample size. Universal our study objective.
sampling technique was adopted which allowed the
Table 1 Summary of the Structure and Themes in the Questionnaire Survey

SN Category Questions
1 Demography  Company name and size
 Respondent position in the company
 Company email and telephone
2 CE awareness  If respondent Heard CE
 How respondent think CE
 What respondent see in the company as practice of CE
3 waste streams and waste  Selection of waste streams generated in company (Plastics, Organic
management strategies solid wastes, Organic slurry, Paper and paper board, Air pollutants, Oil

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residues/grease, Wastewater, and Other)
 Waste management strategy (Reduce, Reuse, Recycle and Disposal)
per each waste stream.
 Selection of process follow to those wastes which are not disposes
(Reusing, Recycling, Animal feeding Composting, Burning or used for ﬁre
Incineration Bioenergy/Biofuel conversion/Biogas and Others).
4 Enablers/Barriers of CE  Likert scale (No Affect, Minor Affect, Moderate Affect, Major affect)
how each of 3Rs (Reduce, Reuse and Recycle) is affected by CE enablers
(Management willingness, technology and skills, finance and investment, and
Government legislations and incentives)
 Likert scale how each of 3Rs is affected by CE barriers of Lack of
management willingness, No skills and technology, Lack of investment and
finance, and no government incentives and legislation.
III. RESULTS AND DISCUSSION
 Results
 Demography of Respondents
Out of the 17 representative of industries which was
eligible to participate in this research as respondents, 11
corresponding to 64.7% of them was able to respond survey
questionnaire which adequate response rate to assess the
finding of the study according to Nulty (2008). 9.1% of
company has less than 20 employees, 63.6% has between 20
to 100 employees and the rest 27.3% has more than 100 Source: Researcher Compilations, 2023
employees (Fig 1). Fig 2 Companies’ Awareness about CE
 Waste Streams and Waste Management in Food

Manufacturing Industries
The waste stream in manufacturing industries was
examined it was found to account 72.7% of campaniles
responded they generate Plastics, Organic solid by 45.5% of
companies, wastes Organic slurry including organic
liquid/viscous waste generated by 36.4%, Paper and paper
board by 90.9%, Air pollutants including dust, fumes, odors
by 36.4%, Oil residues/grease by 27.3%, Wastewater by
90.9% and other wastes 18.2% (Fig 3). With the regard to
Source: Researcher Compilations, 2023 the waste management strategy in practice the strategies
Fig 1 The Company Size were identified by respondent to each waste streams (Fig. 4).
The strategies were reduced, reuse recycle and Disposal. as
 Circular Economy Awareness in Food Manufacturing found on (Fig 4.4). Disposal is the major waste
Industries management practice application compare to the other
The CE awareness among the industries representative practices on each waste stream (see table 4.1 and fig 4.4).
asked in the survey of this study, 36.4% has shown they did And also, the representatives of industries were asked to
not hear Circular Economy yet at time of survey while demonstrate the activities follow after generation of their
63.6% of respondent stated they heard circular economy wastes and found to be: Reused either by you or another
(Fig 4.2). They were asked how they understand Circular industry as raw materials, recycled either by you or another
economy and their responses fall in different range of company, used for Animal feeding, composting for use in
concept of Waste reduction, Reusing waste, waste as raw Agriculture, Burning or used for fire, Incineration
materials, Efficient Economy and no wastage, minimizing (destruction by fire), Bioenergy/Biofuel conversion/Biogas,
raw materials for product manufacturing by using/recycling while the others found to recycle only their wastewater. The
the already used to a usable healthy product and by that conversion of the organics into the agricultural composting
reducing the risks of affecting environment by continuous was the main where 36.4% of the industries practice it, reuse
disposals with no plan for disposal materials, A Business and recycle by 27.3%, burning and incineration by 18.2%,
Model which design out the waste and pollution, making and 9.1% for animal feeding and Bioenergy/biofuel
sure that the product/service is used as long as possible and conversion.
regenerate the environment, suggesting businesses to
recycle.

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Source: Researcher Compilations, 2023

Fig 3 The Waste Streams and their Respective Percentage from Respondent Companies
Table 2 Waste Management Practice/Strategy Per Each Waste Stream

Reduce Reuse Recycle Disposal
Plastics 9.1% 18.2% 72.7%
Organic solid wastes 18.2% 9.1% 9.1% 45.5%
Organic slurry 9.1% 27.3%
Paper and paper board 18.2% 36.4% 72.7%
Air pollutant 18.2%
Oil residues/grease 9.1% 18.2%
waste water 9.1% 18.2% 63.6%
Others 18.2%
Source: Researcher compilations, 2023

Fig 4 Waste Management Practice/Strategy per each Waste Stream

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Table 3 Processes follows after the Generated Wastes but not Disposed to Landfill
Process Fi %
Reused either by you or another industry as raw materials. 3 27.3%
Recycled either by you or another company. 3 27.3%
used for Animal feeding 1 9.1%
Composting for use in Agriculture 4 36.4%
Burning or used for fire 2 18.2%
Incineration (destruction by fire) 2 18.2%
Bioenergy/Biofuel conversion/Biogas. 1 9.1%

Fig 5 Processes follow Generated Wastes but not Disposed to Landfill
 Circular Economy Enablers in Food Manufacturing hinder the implementation of these circular economy
Industries practices and found are: Company is in favor of a linear
The enablers and barriers of CE was evaluated on each economy/the Company does not have/awareness and culture
of the circular economy strategies i.e., 3Rs (Reduce, Reuse about CE and/or Company only thinks within its own
and Recycle) (Manickam and Duraisamy, 2019) with in this company realms and own industry, There is no know-how to
study. In order to examine well each strategy/R was develop CE solutions/ No reverse logistics and material
examined to reveal the circular economy enabling factor and traceability/ No efficient and effective technology for the
barriers. By referring to study conducted by (Keulen and CE processes, CE products do not compete with linear ones
Kirchherr 2021) potential enablers examined are: and or No public demand about CE products and/or It
Management willingness/ company culture (Top increases the expenses while the profit is considerably low
management commitment and/or consistent awareness of and Government policies about CE are unclear and/or no tax
staff and culture inside the organization about CE and/or incentives and/or regulation is not in favor of CE products
Inter-organizational partnership to implement CE), Skills (Keulen, and Kirchherr 2021). In addition to this the Likert
and Technology (There is know-how on CE and/or reverse scale (No Affect-Minor Affect-Moderate Affect-Major
supply chain is available and applicable and/or Efficient affect) used to each of examined enabler/barrier (Fig 4.9,
technology for the CE processes), Finance and investment 4.11 and 4.13). Generally, in all top three 3Rs enablers and
(CE products compete well with linear/normal products barriers the Management willingness enabler has found to
and/or increase your finance while cutting expenses and/or be high impactful with 15% as per respondents representing
there is strong public demand for CE products, and the industries (Fig 6 and table 4). While the barrier of skills
Government incentives and legislations (Fig 4.8, 4.10 and and technology was the main barriers as per survey (fig 7
4.12). At the same time we examined the barriers which and Table 5).
Table 4 How Enabler Affect 3Rs in General

No Affect Minor Affect Moderate Affect Major Affect
Management Willingness 9.1% 6.1% 15.2% 15.2%
Skills and technology 12.1% 6.1% 15.2% 9.1%
Investment and Finance 18.2% 9.1% 12.1% 6.1%
Government incentives and legislation 27.3% 6.1% 12.1% 9.1%

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Table 5 How Barriers Affect 3Rs in General
Barriers No Affect Minor Affect Moderate Affect Major Affect
Lack of Management Willingness 27.3% 9.1% 15.2% 36.4%
No Skills and technology 18.2% 3.0% 12.1% 51.5%
Lack Investment and Finance 39.4% 21.2% 3.0% 24.2%
No Government incentives and legislation 39.4% 15.2% 15.2% 15.2%

Fig 6 How Enabler Affect 3Rs in General

Fig 7 How Barriers Affect 3Rs in General
 Extent which Circular Economy Enabler Affect Circular Economy of Reduce

A survey demonstrated the enablers of like Management willingness was found to be majorly affect the implementation of
circular economy at rate of 36.4% while Government incentives and legislation was found greatly have no influence to circular
economy (fig. 8) (table). on the other hand, the skills and technology were the majorly affectual barrier (54.5%) to implement
circular economy (Fig 9) and many time this was found to be the major barrier for full implementation of CE followed by 36.4%
of lack of management willingness.

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Table 6 The Extent at which Enablers Affect Reduce as Practice of Circular Economy
Management Willingness 1 9.1% 0.0% 1 9.1% 4 36.4%
Skills and technology 0.0% 1 9.1% 3 27.3% 3 27.3%
Investment and Finance 3 27.3% 0.0% 3 27.3% 1 9.1%
Government incentives and legislation 5 45.5% 1 9.1% 1 9.1% 1 9.1%
Table 7 Extent at which Identified Barriers Affect Circular Economy Practice of Reduce
No affect Minor affect Moderate affect Major affect
Lack of Management Willingness 5 45.5% 1 9.1% 0 0.0% 4 36.4%
No Skills and technology 2 18.2% 0 0.0% 2 18.2% 6 54.5%
Lack Investment and Finance 3 27.3% 4 36.4% 0 0.0% 3 27.3%
No Government incentives and legislation 2 18.2% 3 27.3% 2 18.2% 3 27.3%

Fig 8 The Extent at which Enablers Affect Reduce as Practice of Circular Economy

Fig 9 Extent at which Identified Barriers Affect Circular Economy Practice of Reduce

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 Extent which Circular Economy Enabler Affect Circular Economy of Reuse
The enablers of Management willingness and Government incentives and legislation was found to be moderately affect the
implementation of circular economy at rate at 18.2 % (Fig 10) and the same to Reduce, skills and technology was the majorly
affectual barrier (36.4%) to implement Reuse in circular economy (Fig 11) (table 8).
Table 8 The Extent at which Enablers Affect Reuse as Practice of Circular Economy
Management Willingness 1 9.1% 1 9.1% 2 18.2% 1 9.1%
Skills and technology 2 18.2% 1 9.1% 1 9.1% 0.0%
Investment and Finance 1 9.1% 2 18.2% 1 9.1% 1 9.1%
Table 9 The Extent at which Enablers Affect Reuse as Practice of Circular


Fig 10 The Extent at which Enablers Affect Reuse as Practice of Circular Economy

Fig 11 Extent at which Identified Barriers Affect Circular Economy Practice of Reuse

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 Extent which Circular Economy Enabler Affect Circular Economy of Recycle
By refereibg to figure 13 and table 10 the lack of skills and management willingness at rate of 63.6% and 45.5% found to be
the main factor hinder the implementation of circular economy while there is no most occuring enabler to this practice of circular
economy (fig. 12 and table 11).
Table 10 The Extent At Which Enablers Affect Recycle As Practice Of Circular Economy.
Management Willingness 1 9.1% 1 9.1% 2 18.2% 0 0.0%
Skills and technology 2 18.2% 0 0.0% 1 9.1% 0 0.0%
Investment and Finance 2 18.2% 1 9.1% 0 0.0% 0 0.0%
Table 11 Extent at which Identified Barriers Affect Circular Economy Practice of Reuse

Fig 12 The Extent at Which Enablers Affect Recycle As Practice Of Circular Economy.

Fig 13 Extent at which Identified Barriers Affect Circular Economy Practice of Reuse

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IV. DATA ANALYSIS AND DISCUSSION V. CONCLUSION AND RECOMMENDATIONS
Among them 36.4% has shown they did not hear In this paper aimed to fill the gap of lack of literature
Circular Economy yet at time of survey and it reflect the gap related to CE in Rwanda by assessing the enabling factors
to shift to circularity (Murray et al., 2017). Mainly in that facilitate the implementation of circular economy
developing nations there is a lack of awareness of the principles within the food manufacturing industries in
benefits of CE in manufacturing. And there is lack of Rwanda in the case of In Kigali Special Economic Zone
information based on consumer patterns missing, the model (KSEZ) Located in Kigali city- Gasabo district. Based on
for the CE leads to derailing CE efforts in manufacturing the findings their huge gap in application of circular
sector of developing nations (Rathi et al., 2022). Lack of economy in Rwanda, based on the fact that most of
expertise. A major perceived bottleneck of CE is the lack of representatives of the industries replied they apply Disposal
relevant expertise or detail technical knowledge in place for as their main waste management. The most of waste of
the transition from linear to CE (Shahbazi et al., 2016). The plastics was noted as the most occurring challenging wastes
waste stream in manufacturing industries was examined and and there is no established circularity for it. The findings
as it common worldwide plastic wastes generation (Lebreton show that there is no enabler that is common for all, the
and Andrady, 2019) it was found to account 72.7% of enablers which occur om major affect are applied to few
campaniles responded they generate Plastics. Or most of companies and this also is reflected through most occurring
waste streams which is an indicator that there is need long of disposal as the strategy for waste management. While
and many steps to be taken to implement circularity (Pires many companies have reported that the skills & technology
and Martinho, 2019). The strategies were reduced, reuse and management willingness are the major barriers for
recycle and Disposal. as found on (Fig 4.4) disposal is the circularity. Which warn all the stakeholders that the
major practice/strategy in application for most of waste awareness project and the establishment of technological
streams which is an indicator that there is need long and and skills enhancement facilities that lead to CE
many steps to be taken to implement circularity (Pires and development.
Martinho, 2019). A survey demonstrated the enablers of like
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Assessment of Enabling Factors of The Circular Economy Practices in Rwanda - Case of Food Manufacturing Industries of Kigali Special Economic Zone

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Volume 8, Issue 4, April – 2023 International Journal of Innovative Science and Research Technology

Assessment of Enabling Factors of the Circular

I. INTRODUCTION have been adopted at various scales, including the macro

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Table 1 Summary of the Structure and Themes in the Questionnaire Survey

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III. RESULTS AND DISCUSSION

 Waste Streams and Waste Management in Food

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Source: Researcher Compilations, 2023

Table 2 Waste Management Practice/Strategy Per Each Waste Stream

Source: Researcher compilations, 2023

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Source: Researcher Compilations, 2023

Table 4 How Enabler Affect 3Rs in General

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Source: Researcher Compilations, 2023

Source: Researcher Compilations, 2023

 Extent which Circular Economy Enabler Affect Circular Economy of Reduce

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Source: Researcher Compilations, 2023

Source: Researcher Compilations, 2023

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Table 9 The Extent at which Enablers Affect Reuse as Practice of Circular

Source: Researcher Compilations, 2023

Source: Researcher Compilations, 2023

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Source: Researcher Compilations, 2023

Source: Researcher Compilations, 2023

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