Waste Economy

The 2016 Waste Economy Market Intelligence Report by GreenCape analyzes the transition of South Africa's waste sector from a landfill-centric model toward a more sustainable, resource-efficient economy. It highlights significant opportunities for recycling and alternative waste treatment, particularly in the Western Cape, while detailing the regulatory shifts and financial incentives available to greentech investors.

• The South African waste industry is currently dominated by collection and landfilling, with only 10% of waste being recycled. However, it is estimated that 65% of classified waste, approximately 38 million tonnes, is recyclable and could theoretically be diverted from landfills.
• The formal South African waste sector was valued at R15.3 billion in 2012, representing 0.51% of the national GDP. Diverting 20% of industrial and 60% of domestic waste from landfills could potentially unlock an additional R17 billion per year by 2022.
• In the Western Cape, the City of Cape Town (CCT) generates approximately 70% of the province's total waste. Based on 2012 data, the province generates 3.8 million tonnes of waste annually, with an estimated 65% (2.2 million tonnes) being recoverable.
• New regulations coming into effect on 23 August 2016 will ban the disposal of all types of light bulbs at landfills and restrict 'unlined' landfills to only uncontaminated excavated earth and construction and demolition waste (C&DW).
• There are substantial untapped recycling opportunities in the Western Cape across various materials: an estimated 430,000 tonnes of paper, 180,000 tonnes of plastic, 190,000 tonnes of glass (excluding automotive/float glass), and 40,000 tonnes of e-waste.
• Waste-to-energy (WtE) projects in South Africa face several barriers, including low landfill gate fees that make alternative technologies less competitive, low electricity prices compared to developed nations, and difficulties in securing long-term waste feedstock contracts from municipalities, which typically use three-to-five-year procurement cycles.
• The Department of Energy's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) allocated 145 MW for large-scale biogas, biomass, and landfill gas projects. As of the report date, 59 MW of this has been allocated.
• The Atlantis Greentech SEZ in the Western Cape offers incentives to attract greentech manufacturers, including a reduced corporate income tax rate of 15% (down from 28%), an Employment Tax Incentive (ETI), and a 10% per annum building allowance over 10 years.
• Several Western Cape municipalities are exploring alternative waste management through Section 78 processes. Drakenstein has approved a public-private partnership (PPP) for a 12.5 MW WtE facility, while Stellenbosch and the CCT are assessing various projects including landfill gas-to-energy and organic waste treatment.

APA

GreenCape (2016). Waste Economy. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Waste-MIR-2016-3.pdf

Chicago

GreenCape. Waste Economy. 2016. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Waste-MIR-2016-3.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Waste Economy |date=2016 |url=https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Waste-MIR-2016-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2016waste, author = {{GreenCape}}, title = {{Waste Economy}}, institution = {GreenCape}, year = {2016}, url = {https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Waste-MIR-2016-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }