Cash continues to play a vital role in daily life throughout Africa. Despite the rise of digital payment systems, banknotes remain indispensable for millions of people across the continent's 55 countries and its population of 1.3 billion. But every banknote has a limited lifespan and eventually becomes unfit for circulation. The key question is how these unfit banknotes are handled once they leave the cash cycle.
Our Banknote Recycling Study 2023, involving twelve central banks across Africa, found that landfill and incineration remain the predominant disposal methods in these countries. While not every nation participated, the findings are clear: although these approaches offer security and cost efficiency, they also present significant environmental challenges. At the same time, more African central banks are recognizing the importance of progressing towards sustainable alternatives.
The Banknote Study revealed that in Africa, cotton banknotes still dominate, making up about 50% of all substrates in circulation. Cotton notes are secure and durable, but more challenging to recycle compared to polymer. Alongside cotton, some countries use polymer and composite banknotes, or a mix of these. On 28 February 2007, Nigeria became the first country in Africa to introduce polymer banknotes, launching new NGN 5, 10, 20, and 50 denominations made from this innovative substrate. More than two-thirds of African countries have their banknotes printed abroad — mostly in Europe. Printing facilities in the United Kingdom, France, and Germany alone are estimated to supply around forty African nations with new currency.
This wide variety of substrates makes disposal more complex, but also opens opportunities for different recycling approaches.
The global picture is similar: around 75% of central banks still dispose of unfit banknotes via landfill or
incineration. However, attitudes are shifting. More than 55% of central banks now say they are actively considering a change towards more sustainable disposal methods. Africa is very much part of this positive trend. Would you like to receive the complete report then please contact us.
A clear example of this transition can be seen in Nigeria. For years, the Central Bank of Nigeria disposed of unfit banknotes mainly through open-air burning at twelve sites across the country, producing more than 100 tons of waste every week. Since 2020, however, the bank has taken important steps towards recycling. By issuing Requests for Proposals, the CBN invited certified partners to convert shredded banknotes into usable products such as insulation material or recycled paper goods. This example demonstrates that African central banks are not only aware of the problem, but also actively investing in more sustainable solutions.
At Royal Dutch Kusters Engineering, we support this transition by providing the crucial first step: the secure destruction of banknotes. Our machines ensure that unfit banknotes are shredded and destroyed according to the highest international security standards. This creates a safe and reliable foundation for recycling partners to reuse the material in a responsible way. In this way, our technology helps central banks move from disposal to opportunity, enabling a more sustainable cash cycle in Africa.
Cash in Africa is here to stay. The challenge is to manage its lifecycle in a way that is both secure and sustainable. While landfill and burning still dominate, there is a growing awareness and a clear movement towards recycling and circular solutions. With secure destruction technology, African central banks can take practical steps towards reducing their environmental footprint while ensuring the integrity of the cash cycle.
For countries seeking to strengthen their cash ecosystems, efficiency doesn’t stop at production. Secure destruction and recycling systems form the final link in the banknote lifecycle — ensuring that old or damaged notes are removed from circulation in a safe, compliant, and environmentally responsible way.
At Royal Dutch Kusters Engineering, we believe that sustainability, security, and innovation should go hand in hand. Whether in Africa or anywhere in the world, the journey of a banknote reflects the broader challenge of maintaining trust — from the moment it is printed to the moment it is responsibly destroyed.
Curious to learn how your organization can take the next step towards a sustainable cash cycle in Africa? Contact us today!