africa waste week 2015: a case study

Waste Management Business Models in South Africa

Nadine Steyn

Research Analyst in the

Energy & Environment Business Unit at

Frost & Sullivan A trusted global growth partner with over 50 years of experience

Over 40 offices

globally

Market intelligence and

global consulting

services

Global number of

employees: over

2000

12 focus industries

Energy & Environment

Information Communication Technology

Health Care

Automotive

Chemicals, Material & Food

Asked by client to research a certain industry or theme

Waste management business models in Africa

• Cape Town • Johannesburg • Tshwane

Waste defined How waste is defined in South Africa

WASTE

Any waste that containing

organic or inorganic elements

or compounds that may have a

detrimental impact on health

and the environment

Any waste that does not

pose an immediate hazard

or threat to health or to the

environment

Hazardous General

Source: NEMWA (26 of 2014); Frost & Sullivan

Key take away: waste is organised according two defined groups

General waste Examples of general waste

Domestic waste

Commercial waste

Building and demolition waste Inert waste

Source: National Waste Information Baseline Report 2012); NEMWA 2014; Frost & Sullivan

0

10

20

30

40

Per

cen

tage

Waste type

General waste

General waste

Key take away: general waste comprises mainly commercial, building, inert and domestic waste

Hazardous waste Examples of hazardous waste

As South Africa seems to be moving to a more services based economy, Frost & Sullivan believe that this figure of 1% is likely to increase due increases in e-waste

Source: National Waste Information Baseline Report 2012); NEMWA 2014; Frost & Sullivan

Residue deposits

Residue stockpile

Commercial and industrial waste

Hazardous waste

Key take away: hazardous waste comprises mainly commercial and industrial waste, residue stockpiles and residue deposits

55%

44%

1%

Waste Composition as percentage of Total Waste Generated in South Africa,

2011

General

Unclassified

Hazardous

The role of municipalities and private participants in the South

African waste sector

Private versus municipality The types of waste handled by each

Domestic waste

Commercial waste

Industrial waste

Medical waste

Natural waste

Municipality Private participants

Source: COCT 2015 ; Frost & Sullivan

Key take away: hazardous waste comprises mainly commercial and industrial waste, residue stockpiles and residue deposits

The ideal process As observed from the three cities examined

1.Sorting waste on site 2. Collecting and transporting general waste 3. Managing the transfer station 4. Transporting waste to landfill 5. Landfill management 6. Transport recycling 7. Sorting, treating and finally selling recycled material 8.Transport to landfill 9.Transport to compost facility 10. Compost waste 11. The onsite treatment of hazardous waste 12.Transporting hazardous material 13. Neutralise or encase hazardous waste 14. Transport to landfill 15.Collect and transport pre- sorted recycling 16. Waste is disposed of at drop-off sites

Transfer station

Collection

Hazardous waste Treatment

5

2

3 4

1

6

7

8

9

10

11

12

15

Garden site

13

14

Drop-off

16

Key take away: the fundamental investments lie in waste collection, transportation, treatment, minimisation and finally disposal

Waste management in Cape Town

What the municipality offer versus the private sector

Key take away: The municipality in Cape Town actively takes part in all waste activities except for those involving hazardous waste, while the private sector offer all services


Transfer station

Collection

Hazardous waste Treatment reuse

Garden site

Drop-off

Manufacturer

Composter

Landfill

Transfer station

Collection


Garden site

Drop-off

Manufacturer

Composter

Landfill

Source: COCT; COJ; COT; GreenCape Frost & Sullivan

Waste management in Johannesburg What the municipality offer versus the private sector


Transfer station

Collection


Garden site

Drop-off

Transfer station

Collection


Garden site

Drop-off

Key take away: The municipality in Johannesburg, through Pikitup collect general waste, transport it to landfill and offer garden refuse sites as a drop-off point for green waste that is thereafter sold to composter or sent to landfill. The private sector offer all services.

Manufacturer

Composter

Landfill

Manufacturer

Composter

Landfill


Waste management in Tshwane What the municipality offer versus the private sector


Transfer station

Collection


Garden site

Drop-off

Transfer station

Collection


Garden site

Drop-off

Key take away: The municipality in Tshwane collect general waste, transport it to transfer stations and then straight to landfill . The municipality aslso offer garden refuse sites as a drop-off point for green waste however it is sent directly to landfill. The private sector offer all services.

Manufacturer

Composter

Landfill

Manufacturer

Composter

Landfill


Waste management in the informal settlement

Households

Households

Households

Households

No recycling takes place

throughout the process


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Noteworthy initiatives

implemented by big business in

South Africa

-Woolworths -Hotel Verde

Recycle: • in-store signage • carry baskets • plastic hangers (Hangerman recycling

project.) All upgraded shelving is made from recycled materials. Replaced cardboard boxes with reusable plastic solutions The majority of packaging is made from recycled materials Established recycling drop-off sites at Engen Garages and at selected food stores and provides drop-off sites for certain types of eWaste within their stores.

Woolworths

Source: Woolworths Holdings Limited 2014 Good Business Journey Report; Woolworths 2015; Frost & Sullivan

Hotel Verde

Greenest hotel in the world after receiving its second

Leadership in Energy and Environmental Design

Platinum Green Building Certification by the United

States Green Building Council partly for its world class waste

management solutions.

The hotel is one of six hotels in the world and the only one in

Africa.

Verdino in-house sustainability currency.

Source: Hotel Verde 2015; Frost & Sullivan

Future trends in waste management

business models

Municipalities focus on general waste generated

by residents.

Municipalities favour contracting

private players

Private participants waste minimisation services are increasing in demand.

Private participants begun to provide a wider service

offering including treatment and recycling of waste.

Growing need for on site waste management.

The National Waste Management Strategy set

optimistic targets of establishing 2600

new SME’s and 69, 000 new jobs by

2016.

On site waste management has

include waste data management and

reporting.

Source: NWMS; GreenCape Frost & Sullivan

Opportunities in waste management

There is a need for additional

composting facilities

Formalise cooperatives

Intercept waste collected

from the informal settlements for recyclables

Recycling in informal settlements.

There is need for more transfer stations and continued maintenance and upgrading of current infrastructure.

Specialised on site waste management services

There is a noteworthy opportunity in the diversion of waste to landfill. The profile of the type of business most likely to be successful in this space is small, flexible and has access to

innovative project funding models. More garden refuse sites are needed across the country.

Opportunities in recycling

Informal

Informal

Informal

Informal

Low income

Middle income

High income

Manufacturers

Recycled by-products

Policy

Standardised By-laws

Source: Frost & Sullivan

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Thank you

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Nadine Steyn Research Analyst Energy & Environment

+27 (0)21 680 3563

[email protected]

mailto:[email protected]