Closing the Loop: Morocco’s Path to a Circular Plastic Economy
Article written by the Sustainable Food Systems team at ThirdWay Partners
As global plastic pollution continues to rise, countries across the Global South are looking for practical and inclusive solutions. In Morocco, growing urbanisation, industrial activity, and consumer waste are fuelling the need for systemic change—especially in the plastics sector. But alongside the challenges lies a compelling opportunity: to build a circular economy that not only reduces environmental harm but also creates economic and social value. Morocco’s experience offers valuable lessons for other emerging economies navigating similar transitions.
A Growing Challenge in Waste Management
Each year, Morocco generates more than 570,000 metric tons of plastic waste, making it the 10th largest plastic polluter in Africa. While the country has committed to increasing its recycling rate from 25 percent in 2015 to 70 percent by 2030, the reality on the ground reveals gaps in infrastructure, incentives, and formal collection systems.
Much of the waste collected is unsorted and contaminated, making it difficult to recycle and reintroduce into value chains. As a result, significant volumes of plastic end up in landfills, waterways, and natural ecosystems, threatening biodiversity and contributing to long-term environmental degradation.
The Role of Informal Waste Workers
At the heart of Morocco’s plastic value chain are the waste pickers—informal workers often referred to as bou'âra or chiffonniers. Numbering an estimated 35,000 nationwide, these individuals play a vital role in collecting and reselling recyclable materials.
However, they operate without legal recognition, labour protections, or access to social benefits. Without formal integration into the national recycling framework, their contribution remains undervalued, and the sector lacks the structure needed to become a reliable source of green employment and economic growth.
Global Dependencies and Local Vulnerabilities
Morocco’s plastic industry is shaped by global market dynamics. Volatile prices of virgin and recycled plastic, combined with reliance on imported raw materials, expose the country to supply chain disruptions and economic shocks. A transition to circularity offers an opportunity to reduce these dependencies by developing local recycling and manufacturing capacities.
A circular economy model—where plastics are reused, recycled, and kept in circulation—could help Morocco build a more self-sufficient and resilient industrial base.
The Case for Circularity: A Triple Win
Environmental Benefits
Transitioning to a circular plastic economy can significantly reduce Morocco’s environmental footprint. Improved waste collection and recycling can prevent plastic leakage into ecosystems, reduce demand for virgin plastic, and cut fossil fuel use. Global estimates suggest circular practices can reduce greenhouse gas emissions by up to 25 percent, offering Morocco a practical pathway to meet its climate goals.
Social Impact
Bringing waste pickers into the formal economy can lead to transformative change. Structured cooperatives and inclusive recycling frameworks improve livelihoods, working conditions, and access to benefits. Such integration can also empower marginalised communities and improve household well-being.
Economic Opportunities
Developing a domestic circular plastic industry opens doors for job creation, entrepreneurship, and green innovation. While projections for Morocco are still emerging, global data indicates that middle- and low-income countries could create up to 700,000 net new jobs in the circular plastics sector by 2040. For Morocco, this means thousands of potential new livelihoods across the value chain.
A Policy Framework with Strong Foundations
The Moroccan government has taken several important steps to support a circular approach:
National Strategy for Waste Reduction and Recovery (SNRVD): Targets a 70 percent recycling rate for plastics by 2030.
Eco-Tax on Plastics (2013): Helps fund recycling and waste valorisation efforts.
Law 77-15 (2015): Bans plastic bags and reduces single-use plastic dependency.
These policies reflect a strong national vision. However, more is needed to translate ambition into action—particularly when it comes to enforcement, coordination, and industry incentives.
Policy Reform Unlocking New Potential
One pivotal area of reform is Morocco’s Law 28-00, which currently prohibits the use of recycled PET (rPET) in food-grade packaging. Revising this regulation, particularly Article 5, would align the country with international standards and enable fully circular production models—such as bottle-to-bottle recycling.
The expected amendment would not only reduce waste but also boost investor confidence, encourage local processing capacity, and promote safer and more sustainable packaging practices.
Local Pilots Driving National Change
Several pilot initiatives are already showing what is possible when circular economy principles are applied at a local level:
SWITCH2CE Project: Funded by the European Union, this initiative is formalising 900 waste pickers and integrating them into structured recycling chains.
Attawafoq Cooperative: Backed by the World Bank, it creates safe, dignified work opportunities by formalising waste collection processes.
Essaouira Recycling Project: A community-driven model that involves waste pickers and raises local awareness about recycling.
Meknès Waste Recovery Centre: A structured sorting and reselling initiative that integrates informal workers into a formal framework.
These initiatives offer scalable models that can inform national strategy, improve livelihoods, and demonstrate real progress toward circularity.
Financing Morocco’s Circular Future
Moving toward a circular economy will require a blend of public and private financing, alongside technical assistance and policy support. Fortunately, a range of mechanisms are available:
Grants and Calls for Applications: Initiatives such as the develoPPP programme, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the Danida Green Business Partnership, supported by the Government of Denmark, and the Government of Canada’s Climate Finance for Developing Countries, all provide targeted support for private sector-led sustainable development initiatives
Development Finance Institutions: Institutions like DEG, EBRD, and the International Finance Corporation offer concessional loans to businesses advancing circular solutions, often with flexible terms and technical support.
Innovative Finance Tools: Impact investment funds, green bonds, and revolving credit facilities are emerging tools that can provide capital for circular economy projects while ensuring environmental and social returns.
Looking Ahead
Morocco is demonstrating that transitioning to a circular plastic economy is not only possible but essential! The country’s combination of policy ambition, grassroots innovation, and investment potential creates a promising pathway for sustainable transformation.
As other developing economies face similar challenges, Morocco’s story offers an encouraging example: a shift toward circularity can be a catalyst for climate action, social inclusion, and resilient growth. To fully realise this vision, continued collaboration between government, private sector, and communities will be key.
ThirdWay Partners has a presence in Morocco and provides advisory services to a FMCG company which is making its transition into circularity. The firm supports this transition through policy guidance, unlocking financing, and helping scale the innovations that will shape a more circular and sustainable future.
