Volunteers clean the ocean coast from oil after a tanker wreck. Mauritius

Solid Waste Management

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Solid Waste Management

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).
20% - 25% (in GPM)
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.
Medium Term (5–10 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.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11) Responsible Consumption and Production (SDG 12)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Good health and well-being (SDG 3) Affordable and Clean Energy (SDG 7)

Business Model Description

Provide solid waste management services such as the collection, sorting, treatment and recycling of solid waste, including paper and plastics, sourced from individuals, businesses, and sub-contractors as a producer responsibility organization (PRO) complying with the extended producer responsibility (EPR) regulation, and 2040 single-use plastics (SUP) phase-out policy. Collection networks are developed within the company by establishing logistic networks around designated collection points. Collected materials are transformed into secondary raw materials including but not limited to plastic pellets, wood plastic or recycled plastic raw materials.

Expected Impact

Foster a circular economy and promote a more efficient use of resources and a cleaner environment.

How is this information gathered?

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

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Country & Regions

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Country
Region
  • Mauritius: Countrywide
  • Mauritius: Grand Port
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Sector Classification

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Sector

Infrastructure

Development need
Mauritius' fiscal leeway for infrastructural resilience risks falling short in addressing a multitude of climate-change related shocks (e.g., heavy rainfall, sea-level rise). Utility of country's unique marine assets and scarce water resources is menaced by inadequate industrial and domestic wastewater treatment, wide-spread water leakages and lack of storage facilities (3, 6).

Policy priority
Government of Mauritius allocated 40% of 2021/22 Budget, accounting to some USD 1.5 billion, for infrastructure development, including drainage and social housing projects, which is critical for Mauritius's objective of becoming a high-income country (HIC) (2, 42). USD 527 million financial assistance was received from the Indian government for the Metro Express project (43).

Gender inequalities and marginalization issues
In the context of Small Island Developing States (SIDS), application of circular economy principles and upgrading local infrastructure, especially in healthcare and education, are crucial for an ageing population with specialized needs and opportunities for youth and women (27, 28).

Investment opportunities introduction
For 2021-2022, MUR 2.8 billion (USD 62 million) are earmarked to infrastructure as part of the economic recovery program (2). The Government plans to invest MUR 190 billion (USD 4.3 billion) in social and economic infrastructure until 2026 (25). To stimulate private investment in infrastructure, 34 projects worth USD 1.5 billion are in the pipeline (26).

Key bottlenecks introduction
Being an island, Mauritius has limited land space, which experiences a strong competition between agricultural sector and private promoters (6), leaving little space for the development of infrastructure. Scale impedes profitable investments in circularity as waste segregation is limited and there is insufficient waste for closed loop (7).

Sub Sector

Waste Management

Development need
Mauritius, with a population of 1.3 million, generates 1,488 tons of waste daily and 10.1 tons/person/year of e-waste, mostly being exported for treatment (5, 8, 32). Waste management is critical for government to abide by its vision for circular economy, to address overfilling of landfill and to prevent marine pollution caused by waste, including plastics (3, 33).

Policy priority
USD 17.8 million will be allocated for solid waste management by the government foreseeing 30% of waste generation increase by 2030, of which 80% will have recycling potential (2, 3). Implementing a National Solid Waste Management Strategy is envisioned, and the first composting and sorting facility will operate in Mauritius' northern or western areas by mid-2024 (41).

Gender inequalities and marginalization issues
Most employments in the subsector of waste are informal, increasing the vulnerability of people working in the sector (24). This is especially the case for women, who are disproportionately affected by exposure to dangerous goods and practices, particularly when they are working in e-waste recycling (36). People living in the vicinity of landfills also are facing health concerns (37).

Investment opportunities introduction
About 5% of municipal waste are recycled (5). The total annual cost of waste collection, transfer and disposal is about MUR 1.5 billion (USD 34 million) and is operated almost entirely by the private sector (5). There are investment opportunities for e-waste recycling (containing rare elements) and industrial symbiosis (7).

Key bottlenecks introduction
In Mauritius, an enabling environment is lacking, with no market for recycled material and coherent waste management policy and standards (7, 4). The only landfill of the island cannot process the growing waste and lacks waste segregation capacities (3, 5). Additionally, little public awareness on recycling and illegal dumping limit the recycling potential (7).

Industry

Waste Management

Pipeline Opportunity

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

Solid Waste Management

Business Model

Provide solid waste management services such as the collection, sorting, treatment and recycling of solid waste, including paper and plastics, sourced from individuals, businesses, and sub-contractors as a producer responsibility organization (PRO) complying with the extended producer responsibility (EPR) regulation, and 2040 single-use plastics (SUP) phase-out policy. Collection networks are developed within the company by establishing logistic networks around designated collection points. Collected materials are transformed into secondary raw materials including but not limited to plastic pellets, wood plastic or recycled plastic raw materials.

Business Case

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Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

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

Over 100% increase in solid waste in last 20 years

The average amount of solid waste per capita in Mauritius has increased steadily from 0.6 kg in 2000 to 1.1 kg in 2019, generating around 537,147 tons in total (7).

Mauritius' solid waste increased by 29% between 2010 and 2020 and by more than 100% over the last 20 years. Domestic and commercial waste per capita may further increase by 79% between 2020 and 2030, according to high GDP growth scenario at 6%, creating room for increased solid waste management (7).

The Government spends around MUR 1.5 billion (USD 41 million) annually on the operation and maintenance of the transfer stations and of the landfill site, and on transportation of wastes to landfill (7).

Indicative Return

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

20% - 25%

WeCycle, a company specialized in the collection of recyclable waste, including paper and cardboard Made in Mauritius, recorded a gross profit margin of 24% in 2020 (39, 40).

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.

Medium Term (5–10 years)

The UNDP 2020 Circular Economy assessment identifies a medium term timeframe for investments in solid waste management (7).

Ticket Size

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

< USD 500,000

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

There exist uncertainty and risk of securing raw materials once investment in machinery and equipment has been made, given the existing tender process for providing waste management services (7).

Impact Case

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Sustainable Development Need

Considering Mauritius' limited waste management facilities and recycling potential, with only one landfill, together with the local and tourist population growth, there is a need to address the issue of the foreseen increase in waste generation of 50% growth from 2013 to 2030 (3).

Waste is responsible for air pollution, especially when people dump their waste or burn it (5). In 2019, waste was the second largest contributor to GHG emissions after fossil fuel energy, with 23% of emissions (7), and is expected to reach 635 ktCO2 equivalent by 2030 if business as usual continues (14).

Contamination by illegal dumping of waste is also an issue since it is harmful to both the environment and humans, especially when it contaminates water, notably sources used for human consumption (3). It is estimated that 12% of the solid waste is dumped indiscriminately onto wastelands, bare lands and waterbodies (7).

Gender & Marginalisation

People employed in waste management and recycling often are part of the informal sector, which increases their vulnerability regarding unpaid engagements, illegal working conditions or job loss (24, 12).

Expected Development Outcome

Developing a proper systems of collection, treatment, disposal and recycling of waste through an integrated approach will enable to reach the high recycling potential of waste generated (80% of waste have a recycling potential, but only 5% are currently recycled) and to decouple growth from waste generation (3, 4, 5).

Developing Mauritius' waste management capacities will reduce its dependency on external and foreign waste management services (3), creating employment locally and reinforcing the conditions for building a circular economy so that enough raw materials will be collected for the industry to operate in a close loop system (7, 3).

Enhancing waste management and developing recycling facilities contributes to decreasing harm caused to the environment (5) and pressure on public health (3, 4), notably though CO2 emission reduction: Up to 2.25 million tons of CO2 could be saved annually, with 313 ktCO2eq emissions avoided in the sector of waste by 2030 (9, 14).

Gender & Marginalisation

Employees will benefit from the development of waste management and recycling systems, since it is expected to improve their working conditions, supporting the formalization of employment situations (24).

Primary SDGs addressed

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

11.6.2 Annual mean levels of fine particulate matter (e.g. PM2.5 and PM10) in cities (population weighted)

Current Value

Currepipe: 100% (2009), Port Louis: 98% (2012) (13).

10.5 (with 11.3 for rural areas and 9.5 for urban areas) in 2016 (13).

Target Value

N/A

N/A

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

12.5.1 National recycling rate, tons of material recycled

12.2.1 Material footprint, material footprint per capita, and material footprint per GDP

Current Value

25% in 2013 (9).

N/A

Target Value

50% by 2025 (9).

N/A

Secondary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Good health and well-being (SDG 3)
3 - Good Health and Well-Being
Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

Directly impacted stakeholders

People

General population benefits from less pollution, especially people living near landfill sites, and people working in waste management and recycling.

Gender inequality and/or marginalization

People informally employed in the waste management or recycling sector benefit from the formalization of their jobs and better working conditions.

Planet

The environment benefit from less illegal dumping and consequently reduced soil, air and water pollution.

Corporates

Companies operating in the industrial sector benefiting from new raw recycled materials and market opportunities, companies operating landfills, companies involved in waste logistics.

Public sector

Local authorities, in particular Ministry of Environment, Solid Waste Management & Climate Change, benefit from deployment of private capital and shared waste management responsibilities.

Indirectly impacted stakeholders

People

People working in the industry obtain new employment opportunities under improved conditions.

Corporates

Companies using the recovered sources, as well as businesses operating in the tourism industry through sustainable destination marketing and decreased environmental pollution.

Public sector

Government of Mauritius experiences a strengthened commitment to a circular economy and cleaner environment.

Outcome Risks

The formalization of employment in the waste management sector may deprive informal waste collectors from an income generation opportunity, further exacerbating their vulnerability.

Impact Risks

The investments required in integrated waste management may result in higher service fees, which may be unaffordable for low-income communities who would consequently be excluded from benefitting from the expected impact.

When waste is exported, it is not brought back to the domestic economic system and the opportunities to generate value and create jobs around recycling activities are limited by the lack of a local market for recycled goods.

Impact Classification

C—Contribute to Solutions

What

Solid waste management reduces environmental harm through decreased waste dumping and a more efficient use of resources, and results in a cleaner and more healthy environment for people.

Who

The general population benefits from less pollution and increased job opportunities, and the environment enjoys more efficient use of resources thanks to solid waste management.

Risk

A potential increase in waste management service fees may hinder affordability, and the lack of awareness or the limited nature of the local market for recycled waste may limit scale.

Contribution

Alongside the circular economy benefits of the utilization of waste from industries such as fish processing and textiles, solid waste treatment reduces environmental degradation.

How Much

Solid waste management targets domestic and commercial waste per capita which may increase by 79% between 2020 and 2030 and reach 673 tons, according to high GDP growth scenario at 6% (7).

Impact Thesis

Foster a circular economy and promote a more efficient use of resources and a cleaner environment.

Enabling Environment

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Policy Environment

Maurice Ile Durable (MID), 2013: Mauritius Sustainable Island (MIS) mentions waste management as one of the key actions to take in order to reduce pollution and enhance Mauritius green economy (3).

Mauritius Nationally Determined Contributions (NDC), 2020: Identifies waste, especially solid waste management, as a key sector in Mauritius' strategy for emissions reduction, and sets a target of 313 ktCO2eq of avoided emissions by 2030 for the sector of waste (14).

Government Programme 2020-2024, 2020: Reflect on Mauritius primary strategic objectives toward becoming a high-income and environmentally sustainable country. It advocates for the implementation of a national waste management system (44).

Financial Environment

Financial incentives: The SUNREF program offers both financial and technical assistance for companies’ engagement in green economy, including waste management. The offered loan amount is up to MUR 200 million (USD 5.5 million) (21).

Fiscal incentives: In the Budget 2019-2020, it was announced that all recycling activities will be categorized as manufacturing activities, allowing them to take advantage of various fiscal and other incentive schemes (7).

Other incentives: The Government provides a tipping fee of MUR 300 (USD 7) per ton of waste taken from the transfer stations in order to be recycled by one of the 36 registered recyclers / exporters in Mauritius (22).

Regulatory Environment

The Environment Protection (Banning of Plastic Bags) Regulations, 2015: It was reviewed to further reduce the number of plastic wastes being generated in the country (15).

Environment Protection (Standards for hazardous wastes) Regulations, 2001 and the Environment Protection (Collection, storage, treatment, use and disposal of waste oil) Regulations, 2006: Regulate the disposal, use, treatment, transport and storage of hazardous waste (16) and oil (17).

Local Government (Registration of Scavenging Contractors) Regulations, 2004 and Local Government (Registration of Recycler and Exporter) Regulations, 2013: Regulate the registration of scavenging contractors (18) and the one of recycler or exporter (38).

Environment Protection Act, 2002: Provides national framework for environmental protection and sustainable development (19).

Marketplace Participants

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Private Sector

ATICS, Polyecogroup, Sotravic, Solid Waste Recycling, Island Waste, Sewerage Services, Lux Consult, D.Seeven Ltd.

Government

Ministry of Environment, Solid Waste Management and Climate Change, Ministry of Energy and Public Utilities, Ministry of Local Government and Disaster Risk Management.

Non-Profit

Environmental Protection and Conservation Organization (EPCO).

Target Locations

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country static map
semi-urban

Mauritius: Countrywide

Solid waste management is relevant across Mauritius (in Rodrigues and outer islands as well), where landfill operations are conducted on Mare Chicose single site and transit operations in five transfer stations: Poudre d’Or, Roche Bois, La Chaumiere, La Brasserie and at La Laura (7, 30).
semi-urban

Mauritius: Grand Port

Grand Port comes to the forefront in solid waste management in Mauritius, being the district where the island's sole landfill, Mare Chicose, is located.

References

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