Two blue overfilled waste bins on wheels for collecting recyclable materials. Pollution and waste disposal. The concept of an ecologically clean environment, garbage recycling.

Integrated Waste Collection & Management Services

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Integrated Waste Collection & Management Services

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Waste Management
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
45% of Eswatini's waste is openly burnt and the textile industry generates 402 tons of waste per month
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Responsible Consumption and Production (SDG 12) Sustainable Cities and Communities (SDG 11) Good health and well-being (SDG 3)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Climate Action (SDG 13)

Business Model Description

Construct, operate and maintain waste collection and sorting facilities or operate controlled dumpsites under the responsibility of local municipalities through public-private partnerships, which include recycling, composting and disposal of solid waste to prevent open burning practices.

Expected Impact

Decrease the environmental burden of waste, improve resource utilisation, and enhance living conditions and public health.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

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Country & Regions

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Country
Region
  • Eswatini: Countrywide
  • Eswatini: Countrywide
  • Eswatini: Countrywide
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Infrastructure

Development Need
Limited infrastructure is identified as a key contributor to poverty and a major obstacle to inclusive development. 35% of road infrastructure are in poor condition, housing, water and waste management are of poor quality, and physical infrastructure is poorly maintained, which curtails growth, prosperity, investment inflows, trade and employment (1, 2).

Policy Priority
Policy priority: The National Development Plan (NDP) and Kingdom of Eswatini Strategic Roadmap 2019-2022 highlight efficient economic infrastructure network as a prioritized national outcome and emphasize investments in infrastructure for improved public and private sector activity to support socioeconomic development (1, 3).

Gender inequalities and marginalization issues
Existing infrastructure such as water, sanitation and hygiene, waste management, road infrastructure and ICT infrastructure in rural and low-income areas is significantly underdeveloped compared to urban and affluent areas and do not address the socio-economic development needs of the poor, with increasing pressure placed on infrastructure in rural areas and expanding low income urban settlements, resulting from urbanization (1, 4).

Investment opportunities introduction
Key investment opportunities for infrastructure in Eswatini include housing, ICT, transportation, water and sanitation, waste management, energy utilities as well as sector specific infrastructure for healthcare facilities, education centers and industries that stimulate economic growth (1, 5).

Key bottlenecks introduction
Fiscal challenges faced by government resulting in limited public expenditure capacity on infrastructure as well as rapid urbanization and extreme climatic conditions place increasing pressure on existing infrastructure (1, 5).

Sub Sector

Waste Management

Development need
The growing waste management problem in Eswatini can be seen as a symptom of industrialization, urbanization, and population growth. Waste collection is limited to urban areas, while rural areas are subject to open-burning, contributing to increased GHG emissions and pollution (18). Plastic waste is also a major threat to the country’s ecosystem especially in rural areas (6).

Policy priority
The Eswatini Environment Authority's primary mandate is to address the issues of growing waste management problem with the use of a holistic approach in waste management, focusing on waste prevention and minimization (8). The Kingdom of Eswatini Strategic Roadmap 2019-2022 also takes plastic waste into consideration, discouraging the use of plastic bags (3).

Gender inequalities and marginalization issues
Growing need for waste management is more visible in rural areas of Eswatini, such as Zikhotheni and Zombodze (Shiselweni) where communities do not have access to waste collection services, and resort to open waste burning or burying. Rural regions that rely on agriculture for livelihoods are more sensitive to pollution caused by lack of waste management (7).

Investment opportunities introduction
Government aims to create special industrial zones for MSMEs to take advantage of manufacturing opportunities, including recycling, while metal recycling is highlighted as an opportunity with a planned E 50 million (USD 3 million) investment from the government (9).

Key bottlenecks introduction
Limited coverage of existing waste management systems, prevalence of informal burning practices and widespread use of plastic material hindering regulation and control, limited land availability due to tenure system are key bottlenecks for waste management interventions.

Industry

Waste Management

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Integrated Waste Collection & Management Services

Business Model

Construct, operate and maintain waste collection and sorting facilities or operate controlled dumpsites under the responsibility of local municipalities through public-private partnerships, which include recycling, composting and disposal of solid waste to prevent open burning practices.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

45% of Eswatini's waste is openly burnt and the textile industry generates 402 tons of waste per month

According to the Waste Characterization Report of 2021, Eswatini's national waste generation per capita was averaged at 27.9 g / day / capita (6). Of the total waste generated in Eswatini, 45% was openly burnt, 25% was sent to landfills and almost 30% was recycled (6).

402 tons of textile waste was generated per month at the Matsapha Industrial Estate, where 80% of Eswatini's garment and textile factories are located (14).

Diverting waste away from dumpsites and landfills towards reuse, recycling and recovery could inject an additional USD 8 billion every year into the African economy, and create significant socio-economic opportunities for the continent (13).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

15% - 20%

Benchmark projects from Turkish waste collection enterprises and sorting facilities exhibit IRRs of 10-15%. South African waste reuse solutions indicate IRRs of 20-25% (30).

A study on the waste management services in the Kwaluseni area (Manzini) reported a willingness-to-pay for waste management services averaging at E 47.71 (USD 3) per month and household (14).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

Waste collection and sorting facilities require less technologically intense investments and can generate return in a short-term period.

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Capital - Requires Subsidy

Established waste collection and management systems are located in urban areas, those seeking to service rural areas where no current activity exists may require subsidies to be commercially viable (7).

Business - Supply Chain Constraints

The informal sector has a large presence in solid waste management, and practices such as back-yard pits and open burning of household waste hinder systematic collection and delivery of waste to processing facilities (29).

Market - Highly Regulated

Eswatini lacks clear policy guidelines for processing facility design criteria, site selection or operational criteria, furthering the informality of the waste management ecosystem (29).

Impact Case

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Sustainable Development Need

Of the total waste generated in Eswatini, 45% was openly burnt, 25% was sent to landfills and almost 30% was recycled (6). With a national waste generation per capita calculated to be 27.9 g / day / capita (6), the growing waste management need has been accelerated by the pressure of population growth coupled with a lack of existing waste management infrastructure (8).

Degradable waste, especially food waste, is the major waste component in the waste generated from both households as well as in dumpsites and landfills (6).

With almost 80% of the textile and garment factories located in the Matsapha Industrial Estate, generated waste reach 402 tons per month in this area, with a collection efficiency of only 36% (137 tons), with the reminder often landing in illegal dump sites (14).

Gender & Marginalisation

Waste collection is limited to urban and company towns in Eswatini, while rural areas are marginalized and do not benefit from waste services (6).

Lack of waste management can pose serious hazard to people and public health, especially for low-income and rural communities, with the spread of diseases but also by contaminating soil, water and air (6).

Solid waste management in urban centers is increasingly becoming a problem due to population growth and rapid urbanization, particularly in low-income areas where infrastructure is inadequate (21).

Expected Development Outcome

Integrated waste management services contribute to reducing the risk of diseases linked with unmanaged municipal waste while reducing GHG emissions from open burning practices standing at 45% of total generated waste (29).

Integrated waste collection and management leads to food waste recycling, which avoid food waste (17), overloading of landfills or CO2 emission, and produces nutrient-rich fertilizer or energy. It also creates a recycling industry for export purposes, which can have financial and human gain, as Tunisia and Senegal earned USD 20 million and USD 30 million in 2007 from exports of scrap metal, aluminium and recovered plastics (16).

Gender & Marginalisation

Integrated waste collection and management with a focus on rural areas benefit marginalized populations, who are currently unserved, as well as creates employment opportunities especially for low-skilled workers.

Integrated waste collection and management and the resultant recycling activities reduce burnt and illegal dumping, thus limiting toxic waste and the risks of diseases associated with lack of hygiene infrastructure particularly prominent in rural areas of Eswatini (21).

Primary SDGs addressed

Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production

12.5.1 National recycling rate, tons of material recycled

Current Value

Of the total waste generated, 30% was recycled in 2017 (6).

Target Value

N/A

Sustainable Cities and Communities (SDG 11)
11 - Sustainable Cities and Communities

11.6.1 Proportion of municipal solid waste collected and managed in controlled facilities out of total municipal waste generated, by cities

Current Value

Of the total waste generated, 45% was openly burnt, 25% was sent to landfills and almost 30% was recycled in 2017 (6).

Target Value

N/A

Good health and well-being (SDG 3)
3 - Good Health and Well-Being

3.9.2 Mortality rate attributed to unsafe water, unsafe sanitation and lack of hygiene (exposure to unsafe Water, Sanitation and Hygiene for All (WASH) services)

Current Value

27.9 per 100,000 population (2016) (31).

Target Value

N/A

Secondary SDGs addressed

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure
Climate Action (SDG 13)
13 - Climate Action

Directly impacted stakeholders

People

Urban residents who generate the most waste and rural communities without adequate services benefit from waste management and collection.

Inhabitants from rural or peripheral settlements with lack access to waste management.

Planet

Environment enjoys improved air, water and soil quality.

Corporates

Industrial producers with high waste generation volumes, such as Kwaluseni industrial areas and its textile industry.

Public sector

The government benefits from human and economic gains, and local authorities enjoy waste collection through service providers.

Indirectly impacted stakeholders

People

Communities near landfills and the general population enjoy reduced harmful impacts of current open waste burning practices, low-skilled and informal workers obtain employment opportunities.

Gender inequality and/or marginalization

Rural communities benefit from income through recycling for domestic use, especially of plastics.

Planet

Environment benefits from efficient resource utilization.

Corporates

Secondary businesses benefit from managed waste as inputs to resource production.

Outcome Risks

The existing informal market of waste collectors may be disrupted, which may marginalise smaller and informal waste collectors and lead to a rise in unemployment in the short term.

If interventions do not incorporate an element of recycling or sustainable waste management, waste may end up in limited number of landfills, which may have adverse environmental impacts (21).

Impact Risks

The prevalence of informal waste management practices coupled with a lack of quality sector reporting reduces the measurability of the generated impact (14).

Overlapping mandates of private entities and municipalities caused by the poor regulatory framework prevents effective delivery of waste management services and associated positive impact.

Persistence of informal waste collection and burning practices may limit the expected impact of formalized services on the environment.

Impact Classification

C—Contribute to Solutions

What

Integrated waste collection and management services decreases the environmental burden of waste, improves resource utilisation, and enhances living conditions and public health.

Risk

While the model of integrated waste collection and management services is proven, policy and regulatory frameworks and continued informal waste collection require consideration.

Impact Thesis

Decrease the environmental burden of waste, improve resource utilisation, and enhance living conditions and public health.

Enabling Environment

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Policy Environment

National Development Plan, 2019/20 – 2021/22: Strengthens waste management programs and develops a framework to address hazardous waste. The plan emphasizes the adoption of a circular economy to improve recycling and waste separation, as well as mechanisms to access funding (1).

National Environment Policy, 2000: Contains the guiding principles underpinning environmental management in the country, promotes the enhancement, protection and conservation of the environment and the attainment of sustainable development in Eswatini (23, 24).

State of the Environment Report, 2020: Identifies key driving forces that influence environmental change, including waste management; highlights the limitations of state funds allocated for new waste management developments, such as integrated waste management infrastructure (18).

Financial Environment

Financial incentives: The National Environment Fund aims to promote environmental sustainability in Eswatini, with chemical and waste management as the priority areas. It awards grants of up to E 300,000 (USD 20,000), with at least 80% for environmental activities and 20% for administrative tasks (25).

Other incentives: Among the listed projects of the government's Post-Covid-19 Recovery Plan is the planned investment of E 50 million (USD 3.3. million) for a Steel and Metal Recycling Plant (9).

Regulatory Environment

Waste Regulation, 2000: Regulates the management of solid waste and liquid waste in Eswatini. It also provides detailed guidelines on waste management and stipulates fines for failure to comply (22).

Environment Management Act, 2002: Establishes a framework for environment protection, regulates waste licenses, import, export, and trade in waste, as well as waste management’s functions of the Eswatini Environment Authority (EEA), local authorities and waste service providers (19).

Litter Regulations, 2011: Regulates prohibition of littering, manages litter offences, and grants responsibility to different entities for the provision of waste receptacles (26).

Legal Notice No. 324 the Public Procurement Act, 2020: Regulates the procurement of goods, works and services by procuring entities, including for waste management, to ensure transparency, accountability and promote diverse private sector participation in public procurements (28).

Marketplace Participants

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Private Sector

Envirowise Waste Management, Eco-Buzz, Eric Slabbert Agencies, Eclipse Environmental Solutions.

Government

Eswatini Environment Authority (Ministry of Tourism, Environment and Communication), Ministry of Housing and Urban Development, Ministry of Natural Resources and Energy, Water Services Corporation, City Councils.

Multilaterals

United Nations Development Programme (UNDP), UN Environment, Food and Agriculture Organisation (FAO), United Nations Industrial Development Organization (UNIDO), African Development Bank (AfDB).

Non-Profit

Institute of Waste Management of Eswatini (IWMEswatini).

Public-Private Partnership

Eclipse Environmental Solutions, a municipal and landfill waste management company, has been awarded the contract for the maintenance of the Manzini Controlled Dumpsite by the Municipal Council of Manzini with a contact volume of E 4.2 million (USD 279,000) (12).

Target Locations

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country static map
semi-urban

Eswatini: Countrywide

Coverage of waste management systems in the form of landfills or dumping sites is less than 20% of the coverage required for the country (7).
rural

Eswatini: Countrywide

Although rural areas generate 58% of Eswatini's waste (137,409 tons), there are no waste collection and management systems in place; waste disposal takes place mostly indiscriminately or through backyard burning (7).
urban

Eswatini: Countrywide

Urban areas constitute 42% of the total waste generated (29), 80% of the waste generated in Eswatini's urban areas is combustible material; mostly domestic waste constituting of plastic, food packaging, paper and cardboard (7).

References

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