Waste Economy

The South African waste sector is transitioning from a landfill-centric model to one focused on waste diversion, driven by regulatory reforms and limited landfill airspace. While only 10% of waste is currently recycled, significant opportunities exist in the recovery of paper, plastics, glass, e-waste, and construction and demolition waste. In the Western Cape, the City of Cape Town generates 70% of the province's waste, presenting a concentrated market for alternative treatment. Waste-to-energy (WtE) projects face economic and regulatory hurdles, such as low landfill gate fees and electricity prices, but opportunities remain in small-scale biogas and large-scale REIPPPP projects. The report also highlights the role of Producer Responsibility Organisations (PROs) and the availability of green manufacturing incentives in Special Economic Zones like Atlantis.

• The South African waste industry is currently dominated by collection and landfilling, with recycling accounting for only 10% of waste management.
• The formal waste sector in South Africa was valued at R15.3 billion in 2012, representing 0.51% of the national GDP.
• Substantial economic growth is possible through waste diversion; diverting 20% of industrial and 60% of domestic waste from landfills could unlock an additional R17 billion per year by 2022.
• In the Western Cape, the City of Cape Town (CCT) is the primary waste generator, producing approximately 70% of the province's total waste.
• There are significant untapped recycling opportunities in the Western Cape, including an estimated 430,000 tonnes of paper, 180,000 tonnes of plastic, 190,000 tonnes of glass, and 40,000 tonnes of e-waste available for recovery.
• Construction and demolition waste (C&DW) in the City of Cape Town presents a specific opportunity for the crushing industry, as 20-30% of the 43,000 cubic metres of rubble dumped monthly is suitable for road sub-base material.
• Waste-to-energy (WtE) adoption in South Africa is hindered by low landfill gate fees, low electricity prices compared to developed nations, and difficulties in securing long-term feedstock contracts for municipal solid waste.
• The Department of Energy's REIPPPP has allocated 145 MW for large-scale bioenergy projects, with 59 MW already allocated across landfill gas, biomass, and biogas.
• New regulations coming into effect on 23 August 2016 will ban the disposal of all light bulbs at landfills and restrict 'unlined' landfills to only uncontaminated construction and demolition waste and excavated earth.
• The Atlantis Greentech SEZ in the Western Cape offers incentives to attract manufacturers, including a reduced corporate income tax rate of 15% and an Employment Tax Incentive (ETI).

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} }