Though important to the economy, most still lack adequate financing, and many operate on thin margins with limited power access. 

These same businesses are now facing two major changes at the same time, the need to operate sustainably and the spread of green technology.

Green technology, clean energy, efficient processes, waste innovation and climate‑smart leverage, are changing markets worldwide. My argument is for African SMEs, sustainability need not be a cost centre or an aspirational label. 

With the right mix of policy, finance and adoption, green tech can be a profit engine, making SMEs stronger, more resilient and more competitive.

Top Policies to Watch: 2026 as Year of Institutional Discipline

SMEs: The Backbone of Africa’s Economy

Across the continent, SMEs make up the majority of businesses, informal and formal, and are vital to jobs and growth. They generate over half of Africa’s economic output. In low‑income economies, their share is usually over 50%. 

Meanwhile, less than a fifth of them have access to formal credit, leaving a massive investment gap. 

They are agile. They innovate. But they also feel immediate pressures such as high energy costs, unreliable electricity, and limited access to modern tools. That’s where green tech steps in.

What Green Tech Means for SMEs

Green tech is usually described at a national or multinational scale, but for SMEs, it’s far more concrete:

• Clean Energy: Solar panels and mini‑grids are now more affordable than ever. They replace expensive diesel generators and provide more reliable power.
• Climate‑Smart Agriculture: Irrigation tech, soil health systems and drought‑resistant methods help farms produce more with less risk.
• Circular Economy Innovation: Recycling and waste‑to‑value models turn disposal costs into revenue streams.
• Efficiency Tools: Software and sensors help track and reduce energy, water and fuel use.

These technologies directly relieve cost pressures that have long throttled small businesses.

Turning Sustainability into Profit

The common misconception is that sustainability means higher costs. That’s really not the case:

1. Lower Operating Costs

Energy is a top expense for many SMEs. Solar power and energy‑efficient equipment cut utility bills and stabilise cash flow. Diesel generators are expensive and unreliable; solar kits paired with batteries provide a predictable cost base and reduce downtime. 

Recently, many African nations doubled imports of solar panels, showing expanded adoption of off‑grid clean energy solutions. 

2. New Revenue Streams

Green tech opens revenue paths that didn’t exist before:

• Excess energy sales: Micro solar and wind installations can feed local grids in some markets.
• Green services and products: Eco‑certified goods attract premium buyers domestically and internationally.
• Carbon and sustainability financing: As investors move to climate‑aligned assets, businesses with measurable sustainability credentials gain access to new capital pools.

In Nigeria, for example, SME sector frameworks now channel climate finance toward climate‑smart business practices, providing tax incentives and credit support for firms adopting environmental, social and governance (ESG) criteria.

3. Competitive Advantage

Consumers are paying attention. In urban markets especially, buyers value brands that reduce waste or support local sustainability. This trend influences buying decisions, pricing power and marketing stories.

Limitations and Solutions

Of course, the transition isn’t automatic. SMEs face some limitations:

• Financing gaps: The IFC estimates a funding shortfall in sub‑Saharan Africa exceeding $300 billion for SMEs. 
• Infrastructure deficits: Reliable transmission, storage and connectivity are still uneven, meaning some green tech can’t reach scale without support.
• Skills and capacity: Even affordable tech requires basic training and maintenance skills.

But solutions are emerging. Blended finance, where development finance, private capital and risk guarantees come together, is gaining ground. 

African financial institutions have pledged more than $100 billion for green growth initiatives, aiming to support renewable adoption and sustainable trade. 

There are also targeted funds focused on SMEs. For example, a $150 million solar green bond was launched to support rooftop installations and other productive uses for small businesses.

Policy and Finance: A Macro View

A supportive policy environment is important. Governments that extend tax incentives, import duty breaks on clean tech and clear sustainability standards make it easier for SMEs to adopt innovations. 

National climate strategies that link SME development with energy transition targets align private and public objectives.

At the same time, climate finance flows into Africa are increasing but still far below needs. Recent data show funding grew nearly 50% in a short period, yet meets only about a quarter of the amounts required to fulfil climate commitments by 2030.

Sound policy can bridge that gap, combining international funds with domestic private sector mobilisation.

Across the continent, green tech is already changing business trajectories:

• In rural villages of Mali and beyond, solar mini‑grids are enhancing local commerce, reducing daily energy costs and enabling businesses like welding shops and bakeries to thrive.
• In South Africa, programmes that open the energy market to private producers are expanding renewable capacity and encouraging SMEs to invest in their own energy solutions. 

These are templates, scalable, replicable and profitable.

With Africa’s population projected to approach 2.5 billion by 2050 and energy demand set to surge, green tech adoption is indispensable. 

The renewable transition is a chance to leapfrog legacy infrastructure and unlock prosperity aligned with climate resilience.

SMEs are nimble, they touch communities and can lead this change. They can scale change faster than large firms burdened by legacy systems. So long as financing, policy and capacity building advance together, green tech can be an engine of both sustainability and profit.

What SMEs Should Do Now

1. Get the basics right: Audit energy and resource use to identify quick savings.
2. Explore blended finance: Seek partnerships that de‑risk green investments.
3. Build competencies: Train staff on energy management and digital tools.
4. Tell your story: Document sustainability metrics to unlock premium markets and capital.

SMEs in Africa have long been engines of growth and now they are at the brink of another chapter, 2026, where sustainability is a driver of profitability, not a burden. 

Green tech isn’t just an add‑on but a strategy, and those who leverage it early will thrive well.

In Lagos alone, where over 14,000 tonnes of waste are produced daily, much of it ends up clogging drains, encouraging floods, and releasing toxic fumes into the air. 

Still, every street corner is filled with piles of trash that never quite disappear.

For Anthony Obiorah, founder of TrashDisappears, this was a systems problem begging for a smarter solution, it wasn’t limited to a civic failure.

His Lagos-to-Abuja moving experience stimulated the idea. “I had lots of trash that I needed to dispose of,” he said. “It occurred to me that if I could sell them, I could actually make something from them. But when I went online to look for recyclers, I couldn’t find any. That was when I realised this wasn’t just an environmental issue, it was a connectivity problem.”

That moment birthed TrashDisappears, a young Nigerian startup building what Obiorah describes as a “smart waste ecosystem”, a platform that connects households, waste collectors, and recyclers through a simple mobile app. 

Using AI, the platform maps collection routes, classifies waste, and matches recyclers with verified waste streams.

It reframes waste not as an eyesore, but as data, information that, if organised, could clean cities, reduce emissions, and create jobs.

Nigeria’s waste value chain is greatly fragmented. Informal collectors, municipal trucks, and recyclers usually operate in isolation, without coordination or reliable data. Obiorah saw this gap early on and decided to take what he calls a “systems-level approach.”

“Yes, it was intentional,” he said when asked about his strategy. “We know the whole system has been fragmented. You just have collectors, you just have recyclers. There is no connectivity. What we are trying to do is create that marketplace that connects all the stakeholders.”

TrashDisappears aims to unify this broken chain, starting from the waste generator, to the collector, to the recycler, and back again to manufacturers who use recycled products. The app will allow users to snap a photo of their waste, and through AI, classify it instantly.

“When you use your phone and take a snapshot, the AI model tells you that this waste is in this category, either plastic, metal, or food waste,” Obiorah explained. “That way, it’s easier for you to know what waste you are sorting.”

Once uploaded, the system routes the request to available collectors, who can then find the most efficient route, optimised by AI to reduce cost, fuel consumption, and emissions.

The Power of Data in Dirty Work

In Nigeria, where many see waste management as a “low-tech” problem, convincing users and investors that data is actually important is no small task. But Obiorah insists it’s non-negotiable.

“If we are truly saying that we want to manage waste, data is key, because there’s nothing you can do effectively without data,” he said.

He believes that by digitising waste flow, TrashDisappears could eventually help cities plan better. “You must have a start point,” he continued. “You want to get a cleaner environment? You must know where it’s at the moment and what you need to achieve by a certain point.”

To build reliable datasets, the team collects and verifies data continuously through its AI module and partner networks. “We know it might not be possible for us to get 100%, but at least we have like 90% on how true our data is,” he said.

This data-centric model, he adds, will be invaluable to municipalities and private operators alike, helping them design smarter waste management strategies, forecast collection patterns, and enforce compliance.

A Platform Built on Partnerships

The startup’s partnerships stretch across the ecosystem, formal and informal. “We are collaborating with the municipal waste authorities,” Obiorah explained. “We are also collaborating with the unconventional collectors, the informal ones. One of the things we’re trying to do is to formalise them, bring them into a more organised sector.”

He adds that recycling firms and households are also part of this network. “We’ve had discussions with all the stakeholders in the value chain, because that’s really where we can achieve our goal.”

While bureaucracy is a challenge, TrashDisappears has found creative ways to operate within and around government frameworks. “We’re already having that conversation with them, and at the moment, they are being receptive,” he said. “But we also know that the informal sector is hugely untapped. That area doesn’t require too much government intervention.”

Not Yet Launched, But Already Moving

Interestingly, TrashDisappears hasn’t launched yet, but its plans are well underway. “We have started sensitisation, and we have developed our prototype,” Obiorah revealed. “We’re currently fundraising and have been invited to pitch at the African Innovation Dance Season Two next month. Based on our plans, we hope to launch by February next year.”

The app’s business model is built to balance commercial sustainability with environmental impact. “Part of our revenue streams is through transaction commissions,” he explained. “We’ll also have a freemium model, corporate partnerships, in-app ads, and a gamification feature where people can play games related to waste.”

There’s even a “share sphere” feature for giving out unused materials, whether freely or for a fee. “Our app opens up different avenues for revenue,” he said.

Beyond Waste: Building City Intelligence

For Obiorah, the ultimate vision for TrashDisappears goes beyond waste disposal. “Yes,” he said, “we see TrashDisappears as a potential data infrastructure provider, not just a waste platform. We want to use data for predictive analysis, to advise both generators and municipalities. We’re not just managing waste, we’re reducing it, creating cleaner cities, and educating people.”

The team plans to launch in Lagos and Abuja first, with expansion plans across Africa. “We definitely will explore carbon credit opportunities and regional expansion,” he said. “Our idea is for TrashDisappears to be a global platform.”

But scaling such innovation in Nigeria demands systemic change. When asked what single government policy he would change to support innovations like his, Obiorah paused briefly before saying: “We need to look at proper enlightenment.”

He believes that without public education and consistent enforcement, even the best technologies will fall short.

At its core, TrashDisappears isn’t only focused on cleaning streets, it’s trying to clean systems. It’s betting that data can make Nigerian cities tidier and smarter.

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Vertiv has introduced the Liebert^® XDU, a new generation of thermal management systems that supports liquid-cooled servers and enables the control of liquid quality, flow and pressure.

As high-density computing applications such as data analytics and machine learning increase, rack densities and temperatures are exceeding the cooling capabilities of traditional air-cooled units and require more efficient and sustainable solutions.

The Liebert XDU coolant distribution system enables the deployment of liquid cooled server applications into any data centre environment, from core to edge computing sites. The system is now available across Europe, the Middle East and Africa (EMEA).

“High-performance computing applications such as artificial intelligence and augmented reality are growing in popularity at the same time that data centres are working to reduce their energy consumption and pushing the industry to find new, more sustainable solutions,” said Roberto Felisi, senior global director and EMEA business leader for thermal management, Vertiv. “Many colocation providers who have traditionally relied on air cooling are now hosting applications with higher power processors that require more efficient heat management solutions like liquid cooling. With the Vertiv Liebert^® XDU, our customers can meet the high-density computing demand whilst improving their operational efficiency.”

The Vertive Liebert XDU is an innovative liquid-to-liquid cooling distribution unit available in two capacities, 450kW and a model capable of up to 1368kW, circulating water through liquid-cooled server racks and rejecting the heat from the returning warm water.

The system uses a closed water loop to avoid any waste, and is capable of capturing heat to utilize it to warm nearby offices, homes or farms, supporting the circular economy.

The Liebert XDU utilizes integrated state-of-the-art controls to vary pump speed to optimize supply water temperature and to provide intelligent flow monitoring and alarms.

The compact solution can be placed in the row near the rack it is cooling, or along the room’s perimeter.

Vertiv developed the Liebert XDU in close consultation with data centre operators and server manufacturers, who are deploying ultra-high-density, high-performance computing solutions more frequently across many different types of data centres. The company has defined a strategic roadmap to enhance thermal management technologies that enable liquid cooling adoption as part of its increased investments in research and development.

“Liquid cooling is not a new technology but we’re now seeing a real opportunity in the market to drive more innovative thermal management solutions. The Liebert XDU solution offers the possibility for Vertiv’s customers to introduce rack-level liquid cooling and reap the environmental benefits,” said Jon Summers, scientific lead in data centres at RISE – Research Institutes of Sweden. “We look forward to support Vertiv’s R&D roadmap and to combine their engineering excellence with the rigorous analysis and testing capabilities of RISE as part of our ongoing research partnership. This will bring a deeper technical understanding of sustainable and effective approaches for the data centre industry.”

The challenge is how prepared are the managers of the economy to deal with the sheer volume of waste generated and ensure effective disposal.  

Now, if you have ever wondered why drains are always blocked, dumpsites are created indiscriminately and pollution is the order of the day in many cities across the country, wonder no more. The answer is simply – People. People. People.

This is the heart of the problem – a large number of people generating large volumes of waste without a discernable plan for proper disposal. 

One thing is clear, Nigeria lacks a proper waste management system. Experts argue that the real problem is a large amount of ‘single-use’ items and products which effectively creates a linear economic model. 

The linear economic model involves “take, make, use and dispose of”. Under this model items once used need to be disposed of and they subsequently end up in landfills and waste sites. Fun fact, the largest open waste site in Africa is situated in Nigeria, in Olusosun, Ojota, Lagos State.  

And with the population expected to hit 400 million by 2050, according to the United Nations Population Fund, UNFPA, the quantity of waste generated annually is projected to continue to increase substantially. 

Translation: unless we have a system in place, it is only going to get worse. 

Describing the Nigerian economy as linear means that when raw materials are used to make products, once the item is used, it automatically becomes a waste product and is quickly thrown away.

The linear model is defined as the traditional model where raw materials are collected and transformed into products that consumers use and discard as waste, with no concern for their ecological footprint and consequences.

Of course, the indiscriminate dumping and burning of waste harm the environment. It pollutes the environment, degrades the quality of air, water and soil and contributes to climate change challenges. It equally affects the health of people, impacting productivity and economic development. 

In seeking to effectively control the waste management problem, adopting global best practices in this space makes sense.

The current trend is shifting from mere waste management to wealth creation, economic development and an improved environment. This is the emergence of the circular economy. 

First off, the circular economy grew out of the urgent desire to curtail waste and drive the reuse of materials and waste to create economic value.

A practical instance is where waste paper is used to make new paper and discarded plastic containers are used to make new plastic materials and other useful items for construction. The potential here is humongous. It guarantees that there will be enough raw materials in the immediate future to continue to produce these items. This is precisely what the circular economy is all about.

Under the circular economy, production has as little impact as possible on the environment by leaving less of a footprint. To make it sustainable, it must follow these three principles: reduce, reuse and recycle. The principles are three approaches – reduce (minimize the quantity of resource use); reuse (optimized resource use) and recycle (turnaround and put the resource to use again).

There are several ways to achieve this. Experts insist that with this system, value is created by focusing on value preservation.

The circular economy can almost be viewed as the opposite of a linear economy. It focuses on optimizing the use of a product or service, a concept that is relevant to economic sustainability.

The circular economic model can help promote and achieve environmental awareness, reduce the indiscriminate dumping of refuse and create wealth-making opportunities for the citizens. 

The circular economic model benefits the citizens, the economy and the environment. It ensures that there are enough raw materials, promotes production efficiency and stimulates economic growth. 

The real issue is how to ensure that the circular economy works for Nigeria’s 210 million people. When we consider the principles on which it is based – the circular economy can present innovative ways to recycle products and materials for the future. This can help to conserve the environment, combat climate change and generate endless job opportunities. Perhaps the biggest advantage the circular economy offers is the waste-to-wealth path for sustainable economic growth. 

While the private sector organizations are already building massive in this direction, the government can help through the implementation of appropriate policies to fast-track the emergence of the circular economy across the country. 

Studies indicate that single-use plastic waste makes up a huge portion of waste generated in an economy. So, policies that ban or restrict the importation, production and use of single-use and all variants of non-recyclable plastics will help precipitate the circular economy. 

Eliminating single-use plastic waste from the environment will no doubt curb the clogging of public drains, curtail incidents of flooding and limit harm to the environment. 

The government equally needs to collaborate more with the private sector to drive the circular economy agenda in much the same way it is pursuing and driving the digital economy agenda. The Minister of Environment can take a cue from Prof Isa Pantami, the Minister of Communications and Digital Economy. 

In addition, portions of the ecological fund can be channelled into grants and rewards for firms that actively promote the circular economy through their business practices with widespread impact. 

The introduction and enforcement of extended producer responsibility (EPR) can be another option to reduce waste, especially plastic waste. Consider container take-back programs, an example of EPR that has been effective in many places.

Under this initiative, consumers will pay a small deposit when products are sold (usually beverages), which is refunded when the packaging waste is returned to the retailer. Naturally, the containers go back to the manufacturer for recycling and reuse. 

There is no reason why a state like Lagos cannot adopt this strategy to reduce the volume of plastic waste in the streets and public drains. 

For a country that urgently needs to diversify its economy, the circular economic model provides tremendous value and opportunities for Nigeria.

When a country demonstrates a commitment to the circular economy, the rats don’t need to eat the poisoned holy communion to gain attention. International and multi-lateral agencies will be eager to provide grants to help drive inclusive circular economy projects.  

For 210 million people to participate actively in the circular economy, the government must urgently step up and step in with relevant policies, collaborate with the private sector and engage the citizens. This is the way to go!

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

It is the latest step in BT Group’s Manifesto pledge to move to circular products, networks and operations by 2030, and then extend this across its supply chain by 2040.

The new programme comes as organisations around the world are transforming their network and IT infrastructure to support the latest multi-cloud deployments.

As part of this transformation, BT environmental specialists will work with customers to better understand and map the role of sustainability in a digital world. 

Replaced or decommissioned electronic equipment from a customer’s network will be shipped back to Cisco to be responsibility re-used or recycled through its takeback and reuse programme. Up to 99.9% of what is returned will be re-used or recycled.

BT has Cisco-certified environmental specialists in the UK, US, Italy, Ireland, Switzerland and Singapore to manage the process. Further countries will be added by end of 2022.

The programme adds to BT’s existing take-back and reuse services for smartphones providing an easy way to upgrade, securely dispose and recycle the devices using a single, complete solution that handles everything.

According to the World Economic Forum (WEF), 57.4 million tonnes of e-waste was generated during 2021 with only 20% recycled. If left unchecked, this could rise to 120 million tonnes each year. WEF also reported that 70% of hazardous waste deposited in landfills is from e-waste.

“E-waste is a growing concern and according to WEF now the fastest-growing waste stream in the world. Our customers and partners have made commitments to report on and improve performance in this critical area,” said Hriday Ravindranath, chief product & digital officer at BT’s Global unit. “Creating a more sustainable, circular economy, where we prioritise dematerialisation and avoid equipment going to landfill, is vital. It builds on our leadership in sustainability and will help deliver on our BT Group Manifesto commitments and ambition to connect for good.”