The R15 billion economy in South Africa rising from the trash
South Africa is facing a landfill capacity crisis, but amid these challenges lie significant multibillion-rand opportunities for economic growth and sustainability.
Discarded or stockpiled resources are increasingly recognised globally as valuable assets, leading to a rise in the prevelence of the circular economy – a model focused on reintegrating resources into the economy to foster sustainable growth.
It emphasises strategies such as designing out waste, reusing, repurposing, and recycling materials, treating discharge, stockpiling, landfilling, or incineration as last-resort options.
While some see this as ‘trash’, it has proven to actually be a sustainable goldmine.
Globally, the circular economy market is estimated to grow from $554.50 billion (R9.7 trillion) in 2023 to $1.898 trillion (R33.21 trillion) by 2033, at a compound annual growth rate of 13.10%.
This trend is materialising in South Africa, with a particular focus on recycling.
“Recycling is more than an activity that has a positive environmental impact, it is a viable business sector that creates jobs and generates billions for the economy annually,” said L&B Recycling.
“More specifically, the recycling industry generates just over R15.3 billion a year, which translates to 0.51% of gross domestic product (GDP),” they added.
According to the 2023 Market Study of the Circular (& Waste) Economy of South Africa, South Africa generates about 107 million tonnes of general waste each year, with a staggering 90%—or 84 million tonnes—ending up in landfills or stockpiles.
This rapid increase in waste, combined with insufficient management and circular economy initiatives, has led to dwindling landfill capacity and poor waste management practices.
Yet, South Africa’s circular economy currently stands at approximately 7%, slightly below the global average – despite the waste having an estimated total resource value of roughly R25.2 billion a year.
The environmental impact of plastic waste is also significant, with estimated economic repercussions ranging from 0.05% to 0.5% of South Africa’s annual GDP—between R3.5 billion and R34.9 billion per year.
According to the Department of Science and Technology, reducing industrial waste to landfills by 20% and domestic waste by 60% could yield an additional R9.2 billion in economic value for the country’s GDP.
To address these challenges, the Department of Forestry, Fisheries and the Environment (DFFE) introduced that National Waste Management Strategy (NWMS) 2020, aiming to divert recyclables from landfills – with a large focus on the economic potential of the circular economy.
The strategy sets ambitious targets to divert 40% of waste within five years, 55% within ten years, and at least 70% by the 15-year mark.
It also emphasises the importance of clean communities with well-managed, financially sustainable waste services and promotes a culture of compliance and zero tolerance for pollution and illegal dumping.
“Recycling is an important part of waste management in South Africa, as it reintroduces resources back into the economy, and reduces the need to produce more virgin resources,” said the DFFE.
“It also contributes to job creation and economic growth by adding value to the recovered materials, and reducing social and environmental costs of having to manage the materials as waste,” they added.
At the forefront of this recycling movement are informal waste pickers, who play a vital role in diverting recyclables from landfills.
These individuals typically sell materials to buy-back centers, which in turn sell to larger collection companies and the companies may sell directly to recycling firms or pass materials for further processing before they are used in manufacturing, potentially in South Africa or overseas.
Research by the DFFE estimates that between 60,000 and 90,000 informal waste pickers contribute significantly to South Africa’s recycling economy, salvaging up to 90% of post-consumer paper and packaging.
Their efforts support both direct and indirect jobs in the downstream recycling and manufacturing sectors, saving municipalities between R300 million and R750 million annually in landfill costs, often at minimal expense to the government.
A study by Linda Godfrey revealed that payments made by the private sector to the informal waste sector through the purchase of recyclables rose from R625 million in 2012 to R872 million in 2017.
“This private sector ‘investment’ in the local recycling economy has led to direct and indirect job creation and improved livelihoods, particularly for a large, well-established and effective informal waste sector, and has indirectly funded municipal waste diversion strategies, saving municipalities in both the collection and disposal of waste,” said Godfrey.
Despite their critical contributions, waste pickers in South Africa remain socially and politically marginalised, often excluded from recycling and waste management decision-making processes.
Reports emphasise the importance of involving them in discussions that affect their livelihoods and the future of recycling.
The DFFE states that integrating waste pickers into policy-making can enhance democracy and support marginalised communities.
Criticism of waste pickers for not collecting all materials or leaving messes is often misplaced; due to financial constraints, they prioritise higher-value items.
If paid reasonably, waste pickers could expand their collection efforts and work more efficiently.
The DFFE suggests that formal recognition and support from municipalities could further empower waste pickers.
Proposed initiatives include providing training and protective gear, establishing cooperative systems for better organisation, and offering financial incentives.
As South Africa charts its path towards a more circular economy, balancing legislation, community engagement, and practical implementation will be crucial in shaping a sustainable future.
By unlocking the economic potential of waste, the country can create much-needed jobs, inject billions back into its economy, all while protecting its environment.
Loading ...
