A pilot program led by the International Finance Corporation (IFC), part of the World Bank Group, suggests that recycling textile waste in Morocco could significantly boost economic growth, create jobs, and attract major private investment.
The initiative, known as the Morocco Textile Circularity program, found that scaling textile recycling could unlock up to $1.9 billion in private investment and generate more than 30,000 jobs. The findings are based on pilot trials showing that textile waste can be successfully converted into new materials suitable for commercial manufacturing.
The pilot exceeded expectations, processing 427 metric tons of textile offcuts into reusable materials, with an additional 2,400 tons committed for future recycling. The recycled materials met industry quality standards and could be reintegrated into supply chains without loss of performance.
Environmental benefits were also highlighted. According to the program’s analysis, using recycled textile inputs could reduce carbon emissions by around 18% and cut water usage by more than 60% compared to conventional production methods.
A key focus of the initiative is the role of informal workers in Morocco’s textile sector. More than 80% of textile waste collectors currently operate outside the formal economy, but the program estimates that up to 75% could transition into formal employment within five years with appropriate policy and institutional support.
The IFC emphasized that scaling textile circularity would require significant reforms, including changes to waste classification rules, customs regulations, and the introduction of systems to track recycled materials. Investments in domestic processing infrastructure were also identified as essential to reduce dependence on exporting raw waste for recycling.
The European Union’s tightening sustainability requirements, including upcoming rules on recycled content and digital product traceability, are expected to increase demand for circular textile systems. Since the EU accounts for the majority of Morocco’s textile exports, these regulatory shifts are seen as a major driver for change.
The program brought together government agencies, industry groups, manufacturers, recyclers, and international brands to develop a coordinated approach to textile recycling. Officials involved describe it as an important step toward building a more sustainable and competitive manufacturing sector in Morocco.
Overall, the findings suggest that textile waste, when managed through structured circular systems, could become a significant source of economic opportunity while also reducing environmental impact.
