Solid Waste Recycling Plants
Solid Waste Recycling Plants
Business Model Description
Invest in the infrastructure and logistics necessary to sort and recycle urban solid waste such as plastic, cardboard, tetra pak, and glass
Expected Impact
Recycling investments could reduce could reduce pollution caused by both legal and illegal dumping on land and at sea, resulting in increased protection of the environment 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.
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Country & Regions
- Tunisia: North-East
Sector Classification
Infrastructure
Development need
Although access rates to infrastructure are high, the quality of Tunisia's infrastructure stock has significantly deteriorated in the past decade, while rural access to infrastructure remains very basic (1). Economic repercussions from the pandemic also generate a need for advanced, sustainable, and resilient infrastructure that supports post-COVID-19 economic recovery and improved value chain integration (2).
Policy priority
Tunisia has begun to establish a credible environment for public-private partnerships (PPPs) by revising its PPP legislation and establishing PPP agencies or specialized divisions within existing institutions for infrastructure investments (2). Public authorities have also established procedures to expedite the execution of large-scale public projects, particularly focusing on infrastructure (3).
Gender inequalities and marginalization issues
Tunisia's public investment is concentrated in coastal areas to the tune of 77%, creating additional incentives for private investment along the coast (4). Improvements to public and social infrastructure, particularly in impoverished interior regions, are also necessary to address the historical divide (5).
Investment opportunities introduction
Tunisia will need to spend 4.4% of GDP annually on infrastructure until 2040 (which will approximate USD 75 billion) to meet the investment gap (2). The COVID-19 crisis has emphasized the need for essential infrastructure investment with a high multiplier effect on growth (6). The prevalence of state-owned enterprises in the infrastructure sector also causes reliance on high subsidies and notable financial losses. (1)
Key bottlenecks introduction
Infrastructure and its administration are often handled by non-competitive firms. The state retains a disproportionate stake of the businesses responsible for a large number of infrastructure and network services (7).
Waste Management
Development need
Despite significant efforts, the waste output is becoming more extensive and diverse, and management techniques are not optimized (8). Only in a limited number of locations is waste separated at the source. About 95% of collected waste is landfilled or dumped (9).
Policy priority
Since 2005, several waste sorting initiatives have been established. In its Nationally Determined Contributions 2021, Tunisia set specific objectives to reduce the average daily amount of household urban waste (kg/capita/day) by 7% by 2030 and reduce the controlled landfill rate for final waste by 54% by 2030 compared to 2020. (10).
Gender inequalities and marginalization issues
At the moment, the recycling industry is almost entirely dominated by informal collectors/waste pickers known as 'Barbechas,' who gather recyclable parts from containers and/or landfills without any legal status (9).
Investment opportunities introduction
Tunisia presently operates 10 landfill sites and 56 transfer stations. There are currently no waste treatment facilities in the country (e.g., mechanical biological treatment or waste incineration plants), highlighting the need for additional facilities (9).
Key bottlenecks introduction
Waste management initiatives have failed due to budgetary and organizational constraints. The challenges include organizational structure and stakeholder responsibilities, lack of data, and lack of incentives for innovation or expansion of Tunisia's recycling sector (9).
Waste Management
Pipeline Opportunity
Solid Waste Recycling Plants
Invest in the infrastructure and logistics necessary to sort and recycle urban solid waste such as plastic, cardboard, tetra pak, and glass
Business Case
Market Size and Environment
2.8 million tonnes of solid waste generated annually
Tunisia generates more than 2.8 million tonnes of solid waste per year, which is growing at a pace of 2.5% each year (12).
Indicative Return
15% - 20%
A gross profit margin of 15-20% is observed for solid waste recycling services in the region based on the existing cases from Morocco (13).
Investment Timeframe
Short Term (0–5 years)
A short investment timeframe between 3 to 5 years is observed in the Tunisian market according to experts in the field.
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Market - Highly Regulated
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
According to the Ministry of Environment, 20% of the total collected residue is improperly dumped, while around 80% is conveniently disposed of (14).
According to a WWF report on plastic pollution, 76% of all waste go to landfills or open dumps, which results in significant adverse environmental effects (15).
Gender & Marginalisation
The waste collection and management sector heavily involves informal workers, "Barbechas" with no access to social protection.
Expected Development Outcome
Investments in solid waste recycling can reduce environmental pollution stemming from the dumping of non-biodegradable and toxic waste into landfills.
Solid waste recycling facilities can increase resource efficiency by increasing the share of recovery and recycling in the waste disposal processes and reducing waste generation through prevention, reduction, recycling, and reuse.
Gender & Marginalisation
Solid waste recycling could help inhabitants from rural and poor areas living close to landfills who suffer from a lack of investment in sanitation and waste management infrastructure.
Primary SDGs addressed
12.5.1 National recycling rate, tons of material recycled
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Outcome Risks
Increasing recycling investments without circular economy and/or waste prevention incentives might increase mass consumption.
Impact Risks
The heavy involvement of local authorities in waste management might risk the probability that the impact could have been achieved with fewer resources or at a lower cost.
Due to the investment timeframes being heavily dependent on the municipalities' duty terms, the required activities might not be delivered for a long enough period to result in the desired impact.
Lack of resources and/or low quantity of waste for recovery might result in local authorities being unable to manage waste, risking the desired impact.
Impact Classification
What
Reduce solid waste levels and increase recycling rates.
Who
Investments in waste recycling are expected to directly serve vulnerable communities living close to wild dumping sites, and indirectly serve industry's clean energy and resource needs.
Risk
While solid waste recycling model is proven, the involvement of local authorities, investment timeframes' dependence on municipalities, and the amount of resources and of waste
Impact Thesis
Recycling investments could reduce could reduce pollution caused by both legal and illegal dumping on land and at sea, resulting in increased protection of the environment and public health.
Enabling Environment
Policy Environment
The National Strategy for the Integrated and Sustainable Management of Household and Similar Waste 2020-2035) aims to increase the material recycling rate of household and similar waste to reach 20% by 2035.
The National Strategy for the Integrated and Sustainable Management of Household and Similar Waste 2020-2035): One of the strategic goals will be integrating household waste management into the circular economy process, relying on local authorities to protect the environment. It will gradually increase the amount of waste being organically recovered to reach a rate of 40% by 2035.
Tunisia in 2025: The Foundations of Growth and Economic Development refers to objectives to improve and develop a waste management system and reach a rate of 10% of waste recycling by 2025.
Financial Environment
Financial incentives: Within a Tunisian-French partnership including ANPE, ANME, and AfD, a subsidized credit line of 40 million EUR (EnviroCred) is available to 3 Tunisian Banks, BIAT, BT, and UBCI to facilitate waste management projects. The loan has a subsidized 4% interest rate and up to 12 years of repayment (16).
Fiscal incentives: Decree 1993-1429 of 23/06/1993 on the suspension of customs duties and value added tax on materials and equipment for garbage collection acquired by companies operating on behalf of local authorities.
Other incentives: The Tunisian Ministry of Environment launched a call for projects in 2021 to construct sorting or recovery centers for household waste.
Regulatory Environment
Law n96-41 of June 10, 1996, on Wastes and the Control of their Management and Disposal
Decree 1993-1429 of 23/06/1993 on the suspension of customs duties and value-added tax on materials and equipment for garbage collection acquired by companies operating on behalf of local authorities.
(ECO-LEF): Since the promulgation of Law no. 96-41, Tunisia has set up several systems for waste management, such as ECO-LEF.
Marketplace Participants
Private Sector
Elec Recyclage Tunisie, Sarem, HSF Industries
Government
The National Agency for Waste Management (ANGED),Ministry of Environment, Local Governments, Rural Councils
Multilaterals
Kfw, the European Investment Bank, the Italian Cooperation, World Bank, the French Development Agency, Korea International Cooperation Agency
Target Locations
Tunisia: North-East
References
- (1) World Bank Group, December 2019. Tunisia Infrastructure Diagnostic. https://openknowledge.worldbank.org/bitstream/handle/10986/35116/Tunisia-Infrastructure-Diagnostic.pdf?sequence=1&isAllowed=y
- (2) OECD, 2021. Middle East and North Africa Investment Policy Perspectives. https://www.oecd-ilibrary.org/sites/49d6211b-en/index.html?itemId=/content/component/49d6211b-en
- (3) Republic of Tunisia, 2018. Economic Recovery Plan 2019-2020. http://www.cae.gov.tn/wp-content/uploads/2019/08/Plan-de-relance-V-Finale-12-oct.pdf
- (4) Bertelsmann Stiftung, 2020. Tunisia Country Report. https://www.bti-project.org/en/reports/country-report-TUN-2020.html
- (5) IMF, 2021. Tunisia Country Report. https://www.imf.org/en/Publications/CR/Issues/2021/02/26/Tunisia-2020-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-50128
- (6) OECD, 2018. Reviving Investment in Tunisia. https://www.oecd-ilibrary.org/economics/relancer-l-investissement-en-tunisie_55b4653d-fr
- (7) General Authority for PPP, 2018. Pipeline of PPP Projects in Tunisia. http://www.igppp.tn/sites/default/files/Fiches_descriptives/03-Fiche%20Station%20d%27%C3%A9puration%20%C3%A0%20Tunis%20Nord.pdf
- (8) Republic of Tunisia - Presidency of the Government, 2018. Economic Recovery Plan 2019-2020. http://www.cae.gov.tn/wp-content/uploads/2019/08/Plan-de-relance-V-Finale-12-oct.pdf
- (9) Prevent Waste Alliance, 2021. Tunisia | ECO-LEF in Tunisia: A case study. https://prevent-waste.net/wp-content/uploads/2021/07/Tunisia.pdf
- (10) Republic of Tunisia, October 2021. Contribution Determinee au niveau National (CDN) actualisee. https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Tunisia%20First/Tunisia%20Update%20NDC-french.pdf
- (11) Elec Recyclage Tunisie, 2021. https://elecrecyclage.tn/
- (12) Agence Nationale de Gestion des Déchets (ANGED). http://anged.nat.tn/
- (13) Ministère de l'Industrie et du Commerce. Banque de Projets Industriels. Projet 231. https://banquedeprojets.mcinet.gov.ma/.
- (14) Chaher et al, 2020. Potential of Sustainable Concept for Handling Organic Waste in Tunisia. MDPI. https://www.mdpi.com/2071-1050/12/19/8167
- (15) WWF, 2019. Stop the Plastic Flood: A Guide for Policy-Makers in Tunisia. http://awsassets.panda.org/downloads/05062019_wwf_tunisia_guidebook.pdf
- (16) Ministry of Environment, 2021. EnviroCred. http://www.anpe.nat.tn/Fr/envirocred_11_53