Circular Economy 2.0 In Practice #1

Case #1 - Hello Tractor

Hello Tractor is a mobile-based service platform connecting smallholder farmers and tractor owners in Nigeria, Kenya, and Ghana, using a collaborative consumption approach.

 

Social Challenges:

Although Africa has one of the largest inventories of uncultivated farmland on earth, it is often that low-income farmers leave their land unploughed due to lack of access to necessary farming tools or labours.

 

Business Model:

Enabling smallholder farmers to have access to tractor services instead of owning a tractor. When farmers need to use a tractor, they send an SMS to Hello Tractor, who will then pair a nearby smart tractor owner to come over and provide the services required. The low-cost, user-friendly smart tractor is equipped with eight types of farming tools and telematics technology to maximise its efficiency.

 

Circular Economy 2.0 adds the social dimension, to the Circular Economy, by designing poverty out of our system on top of designing waste out:

  • The root cause of our environmental challenges is Waste. Waste is designed out in Circular Economy;

  • The root cause of our social challenges is Poverty. Poverty and Waste are both designed out in Circular Economy 2.0;

Both Poverty and Waste do not exist in Nature as it exists in our Human world. Both should be designed out.

To achieve this, the Circular Economy 2.0 proposes three additional Principles on top of the current three “Safe Circular Principles”(1), these are the “Just Circular Principles” (2), using The Doughnut Economy wording.

 

Circular Equity Principle 4

Hello Tractor enables smallholder farmers to own the access to tractors whenever they need the farming service, contributing to reducing inequalities. In addition, thanks to the modular attachments, the smart tractor can adapt to different needs and perform various types of farming tasks.

 

Circular Access Principle 5

Compared with the traditional approach, the smart tractor provides a service that is forty times more efficient and one-third the cost of manual labour. Therefore, low-income farmers are able to lift themselves out of poverty, grow their potential, and further create value within the economy.

 

Circular Ability Principle 6

Hello Tractors creates new types of jobs and utilises manpower locally. As the smart tractor is small, easy-to-use, and affordable, it’s easy for any individual to become a tractor operator and generate income. Tractor owners can also lease their vehicles and hire operators to perform the service.

The ultimate objective of the Circular Economy 2.0 is to Optimize Circular Value (#OCV) since we have now embedded Humans within the model (only Humans perceive Value).

 

(1) The current "Safe Circular Principles" suggested by The Ellen MacArthur Foundation are:

  • Safe Principle #1 "Preserve and enhance Natural Capital by controlling finite stocks and balancing renewable resource flows";

  • Safe Principle #2 "Optimize resource yields by circulating products, components and material at the highest utility at all times in both technical and biological cycles";

  • Safe Principle #3 "Foster system effectiveness by revealing and designing out negative externalities";

(2) In Circular Economy 2.0, we add three socially inclusive principle as we recognize Humans as a valuable assets for our future. We embed them into the concept of Circular Economy thanks to a Humansphere. The additional "Just Circular Principles" are:

  • Just Principle #4 "Equity makes business sense as services could be design to address the needs of all";

  • Just Principle #5 "Developing people's ability promoting any means of exchange is a priority as one should be accessing more with less in a service-based economy";

  • Just Principle #6 "Using labour is innovative as in a systemic regenerative model all abundantly available renewable energies should be considered".

     

     

     

     

     

     

     

     

     

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