Assessing the conditions for circularity and entrepreneurship for urban sanitation and waste management in Basrah City

Iraq faces profound water security challenges exacerbated by climate change, environmental degradation and years of conflict. Rising temperatures, declining rainfall and increasing salinity have significantly stressed water systems, with severe implications for public health, agriculture and urban living conditions. In response to these challenges, the Water Innovation for Circularity and Enhanced Resilience (WICER) project was launched to strengthen Iraq’s resilience to water scarcity and climate change through innovative, circular approaches to water and waste management. The WICER project is implemented by the Stockholm Environment Institute (SEI) in partnership with Cewas-Iraq, the Food and Agricultural Organization Iraq (FAO Iraq), World Food Programme Iraq (WFP-Iraq), the Ministry of Water Resources, and the University of Sulaimani, with funding from the Swedish International Development Cooperation Agency (Sida) over the period 2024–25. It is structured around three synergistic workstreams: (A) resilient water management, (B) market-based urban circularity solutions, and (C) rural circularity practices. This report presents a key activity under Workstream B – an assessment of urban sanitation and waste management in Basrah City – designed to identify service gaps, evaluate current practices, and explore opportunities for sustainable and inclusive resource recovery. Key messages: Basrah City’s sanitation and waste management systems have critical service delivery gaps, with existing infrastructure under strain and minimal resource recovery. Most wastewater is inadequately treated, and over 90% of solid waste is recyclable or compostable, yet nearly all is landfilled, burned or disposed in open dumps. Circular economy interventions remain limited but may be growing: pilot initiatives address wastewater reuse, composting and recycling. Planned infrastructure upgrades, such as for the Hamdan Wastewater Treatment Plant and Al-Nakheila waste complex, offer timely opportunities to embed circularity in future systems. The local private sector has a modest but growing role, with enterprises in composting, wastewater treatment and biogas active elsewhere in Iraq, and informal recyclers operating in Basrah City. Public–private contracts already exist, and clearer procurement pathways could unlock further private sector contributions. Market demand for resource recovery products is low but not absent, with opportunities in high-income segments, agriculture and landscaping. Realizing this potential requires regulatory incentives, trust-building with end users, and demonstration of safe, cost-effective products. Building a more enabling entrepreneurial ecosystem via policy and other supports is essential, including improved data systems, targeted business support, and stronger public–private collaboration. Development partners can play a catalytic role through pilot financing, technical assistance, and capacity building to support inclusive, climate-resilient solutions.