The Role of Sustainable Business Networks in Mainstreaming a Circular Economy in Africa

Transformation of the current patterns of production and consumption will require rapid shifts towards new ways of doing business from unsustainable practices to sustainable ones. Sustainable Business Networks are collaborative entities, which bring together organisations to enhance capabilities in implementing CE practices. In Africa, their role and function has not been assessed. This doctoral dissertation assesses networks in selected Sub-Saharan African countries (Zimbabwe, South Africa and Kenya) to identify strategies for enhancing their impact. The research consists of empirical chapters emanating from different networks. Using case studies, key informant interview techniques, questionnaire surveys, observations and document review, the research concludes that networks occur in different typologies such as industrial clusters, roundtables, business associations, supply chain networks. Their role includes training, capacity building, technical assistance, demonstration projects and dissemination of environmentally sound technologies. The research also concludes that geographical proximity alone does not guarantee network success – rather there are other contextual factors such as governance, business models, network leadership, motivations of members; which are decisive in the long term. Barriers facing networks include lack of financial resources, different priorities, high costs of subscriptions and inadequate technical capacity. The research concludes that the effectiveness of networks is not as high as earlier anticipated and effectiveness is dependent on the context. Gaps exist in business models for financing CE networks and lack of evaluation in most networks. Whilst network participation enhances CE, there are other contextual factors which determine network success apart from collaboration. Most networks rely on subscriptions, but these are not viable due to fluctuations. Other financing models - workshops, conferences, event fees, selling knowledge products and donor funding; require blending with subscriptions to ensure viability. New financing models such as consultancy and crowdfunding are emerging, although with limited application in Africa. The Blended Network Financing Model (BNFM) shows potential to be a basis of strengthening network financing. On the external frontier, the “patron agency effect” plays both a positive and negative role in network demise. The dissertation proposes new models of network governance, management and structure with a financing facility and a Board formulated and controlled by members. The effect of Multinational Corporation affiliation, national law and regional policy regimes influences collaboration. The governance context determines success of network collaboration and the Governance Assessment Tool can be used to assess the collaborative context. Network politics and leadership transitions influence network success. Two patterns of succession were observed - namely electoral succession and succession by appointment. Founder members and choice of succession patterns may affect network collaborative harmony if not effectively harnessed. Due to the dual and multiple network membership of some members, composite effects of network collaboration beyond one entity may be observed.