2014 Market Intelligent Report: Waste Economy
Summary
The 2014 Market Intelligent Report: Waste Economy by GreenCape provides an analysis of the waste sector in South Africa, with a specific focus on the Western Cape. It details the regulatory shift from 'end of pipe' to 'cradle to cradle' solutions, examines the challenges of waste-to-energy and recycling projects, and outlines municipal initiatives to manage dwindling landfill airspace.
Key insights
- The South African waste economy is valued at approximately R15.3 billion, representing about 0.51% of the GDP. The sector is primarily led by large companies providing consulting and end-of-pipe services such as collection, sorting, recycling, and disposal.
- The National Waste Management Strategy (NWMS) of 2011 established targets to create 69,000 jobs and 2,600 small and medium enterprises (SMEs) within the waste economy by 2016. Additionally, the NWMS aims for a 25% diversion of recyclables from landfills through recovery, recycling, and re-use by 2016.
- South Africa's average recycling rate is 19.6%, which is lower than the global average of 23.3%. Approximately 80% of recyclers obtain their materials directly from landfills, largely supplied by waste pickers.
- Waste-to-energy projects face significant hurdles, including complex licensing and low tariffs. For instance, electricity generated from waste is R15-20/kwh more expensive than Eskom's bulk electricity price, meaning developers cannot sell to municipalities at a premium without NERSA permission. Furthermore, obtaining a waste license and Environmental Impact Assessment (EIA) can take between 9 and 24 months.
- In the Western Cape, 80% of waste is generated in Drakenstein, Stellenbosch, and the City of Cape Town. Landfill airspace is critically limited, with an average remaining lifespan of 8 years across the province and less than 3 years remaining for the Stellenbosch municipality.
- The Tyre Industry Waste Management Plan, managed by REDISA, addresses the 10 million waste tyres generated annually in South Africa by implementing a R2.30/kg levy on manufacturers, importers, and dealers to fund a sustainable recycling industry.
- Project developers struggle to secure feedstock agreements due to municipal procurement regulations like the Municipal Systems Act and Municipal Finance Management Act. These regulations often require feasibility studies and public participation processes that can delay project advertisements for several years, discouraging investors who require long-term security of supply (10-15 years) for payback.
Cite the original document
- APA
- Munganga, G., & Mali-Bolo, S. (2014). 2014 Market Intelligent Report: Waste Economy. GreenCape. https://greencape.co.za/assets/Uploads/GreenCape-MIR-Waste.pdf
- Chicago
- Munganga, Gracia, and Sinethemba Mali-Bolo. 2014 Market Intelligent Report: Waste Economy. GreenCape, 2014. https://greencape.co.za/assets/Uploads/GreenCape-MIR-Waste.pdf.
- Wikipedia
- {{cite report |last1=Munganga |first1=Gracia |last2=Mali-Bolo |first2=Sinethemba |title=2014 Market Intelligent Report: Waste Economy |publisher=GreenCape |date=2014 |url=https://greencape.co.za/assets/Uploads/GreenCape-MIR-Waste.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{munganga20142014, author = {Munganga, Gracia and Mali-Bolo, Sinethemba}, title = {{2014 Market Intelligent Report: Waste Economy}}, institution = {GreenCape}, year = {2014}, url = {https://greencape.co.za/assets/Uploads/GreenCape-MIR-Waste.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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