Sustainable Solid Waste Management Solutions

Sustainable Solid Waste Management Solutions

Photo by UNDP Tanzania

Sustainable Solid Waste Management Solutions

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 ROI)
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.
> 25% (CAGR)
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Sustainable Cities and Communities (SDG 11) Responsible Consumption and Production (SDG 12)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Life Below Water (SDG 14)

Business Model Description

Set up companies that provide sustainable waste management services including establishment of waste collection/cycling facilities, development and operation of commercial dumpsites for the collection, storage and utilization of solid waste, e-waste and sewage from residential, commercial and industrial sources, procurement of modern waste management equipment, such as self-loading trucks, mixers and sorters.

Expected Impact

Reduce environmental harm through decreased waste dumping and increased public awareness which will lead to a cleaner and healthier Zanzibar for all.

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

Explore the country and target locations of the investment opportunity.
Country
Region
  • Zanzibar: Mjini
  • Zanzibar: Kaskazini
  • Zanzibar: Pemba
Learn more

Sector Classification

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

Infrastructure

Development need
Yearly tourist inflow in Zanzibar increases the need of infrastructural development in the country burdening the already existing real estate, infrastructural networks, electricity generation and other utilities. Combined with the archipelago's high vulnerability to the impacts of climate change, the burden on the infrastructure intensifies (1).

Policy priority
The Revolutionary Government of Zanzibar introduced private sector engagement in infrastructure development in line with its strategic growth plan (19), encouraging to develop, build, operate, and maintain fundemental infrastructure and services through attracting private investment and public-private-partnership projects in Zanzibar (2).

Gender inequalities and marginalization issues
Inadequate infrastructure utility impacts the rural poor and women the most. As women are more mobile due to their responsibilities in the household (e.g. water fetching) in Zanzibar, they are more vulnerable and threatened. Women and children spend more than two hours a day gathering water on average; in isolated locations, this time can reach seven hours (1).

Investment opportunities introduction
Through the public-private partnership framework offered by the government and incentives centered on sector operations, the industry provides potential investors a strong growth outlook. The market dynamics of the real estate industry are boosted by incentives offered to purchasers (3).

Key bottlenecks introduction
Despite the official encouragement by the state, the private-public partnership modality has not yet gained solid traction in Zanzibar. Especially, acceleration of technology and knowledge accumulation is one of the challenges that effects private sector's effectiveness in these partnerships (2).

Sub Sector

Waste Management

Development need
Increasing tourist numbers creates a significant pressure on infrastructure, particularly on solid waste (4). An estimated 60% of Zanzibar's solid waste is thought to be improperly collected and processed, which results in the buildup of untreated and potentially dangerous materials in illegal landfills and dump sites (5).

Policy priority
Tourism-oriented establishments, such as hotels and restaurants, contribute disproportionately to waste production, representing roughly 80% of all waste generated in Zanzibar (5). Vision 2020 encourages that sustainable economic development should be accompanied by proper environmental management so that natural resources and heritage are passed on to future generations (7).

Gender inequalities and marginalization issues
Growing tourist inflow combined with rapid urbanization caused by rural to urban migration outstretches resources (4). Already inadequate waste management in the country results in accumulation of waste particularly in coastal areas with a high concentration of hotels and tourist activities (5).

Investment opportunities introduction
Approx. 650 tons of solid waste are produced daily by hotels and resorts (6). As tourism sites and facilities are excluded from municipal waste collection and only a few companies handle the plastic waste generated on coastal tourism sites, an indespensable and increasing need of private sector involvement appears in waste management.

Key bottlenecks introduction
Chronic lack of funding and consequent lack of sufficient and adequate equipment leads to uncontrolled accumulation of solid waste in Zanzibar (4). Tourism sites and facilities are excluded from municipal waste collection and only a few plastic companies, handle the plastic waste generated on coastal tourism sites which is inadequate and not diversified.

Industry

Waste Management

Pipeline Opportunity

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

Sustainable Solid Waste Management Solutions

Business Model

Set up companies that provide sustainable waste management services including establishment of waste collection/cycling facilities, development and operation of commercial dumpsites for the collection, storage and utilization of solid waste, e-waste and sewage from residential, commercial and industrial sources, procurement of modern waste management equipment, such as self-loading trucks, mixers and sorters.

Business Case

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Market Size and Environment

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

> 25%

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

Waste generation is estimated to be 1,594 tons/day (8)

The Municipal waste generation in Zanzibar is expected to increase from 238,712 to 405,156 (tons/year) between 2018 and 2039 (9).

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

15% - 20%

UNDP Stakeholder Consultation with existing private sector entities have revealed that the IOA has an ROI of 15% to 20% (24).

Recycling and composting are both lucrative, according to cost-benefit assessments of four solid waste management methods carried out in Morogoro Municipality, giving positive net present values of 5,600 USD and 1,000 USD, respectively. This corresponds to an IRR of around 20% (10).

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)

An economic analysis of solid waste management options in Morogoro Municipality suggests that in 3 years, the model will breakeven with measurable benefits and/or outputs of the management options, such as for biogas, compost manure and recycled products (10).

Ticket Size

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

USD 500,000 - USD 1 million

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

Lack of skilled personnel for sewerage and waste management system (12).

Market - Volatile

A sizable portion of market traders are not registered (13) and there is a lack of adequate and up to date waste statistics data and information for all regions (12) which causes variations in the market.

Impact Case

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Sustainable Development Need

Underdeveloped waste management infrastructure and low level of awaraness on the issue leads to uncontrolled accumulation of solid waste at sewerage system and illegal dumping sites which are very short distant to the households and tourist attractions.

Unsafe drinking water may spread diseases like cholera, giardia, and typhoid that are caused by waterborne microorganisms that are brought on by poor waste management.

Microplastics have both poisonous and mechanical consequences when digested by marine life, including birds, fish, animals, and plants. These effects include reduced food intake, asphyxia, behavioral abnormalities, and genetic disruption (11).

Gender & Marginalisation

Microplastics' chemical composition is linked to substantial health effects, particularly in women. Changes in human genetics, the growth of the brain, and respiration rates are only a few examples of these (11).

Small islands without a significant inhabitant population do not have waste management systems. Zero management of the sewage increases vulnerability of small islands to the uncontrolled sewage from Unguja and Pemba.

Expected Development Outcome

Sustainable waste management solutions will resolve the environmental and public health issues due to inadequate waste management in Zanzibar (13).

Sustainable waste management solutions will lead to clean environment especially in urban areas and tourist centres, which will increase the quality of livelihoods of Zanzibaris as well as the satisfaction of international visitors.

Sustainable waste management solutions will improve Zanzibaris' waste management awareness.

Gender & Marginalisation

Sustainable waste management solutions will protect local population from the increasing health problems due to microplastics and marine litter, particularly women, as women are more vulnerable to the effects of microplastics.

Sustainable waste management solutions will prevent the spread of uncontrolled sewage to the small islands.

Primary SDGs addressed

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

Maternal mortality ratio was measured as 155/100,000 live births according to Zanzibar Health Bulletin 2018 (15).

Target Value

Reducing the global maternal mortality ratio to less than 70/100,000 live births (15).

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

There is not a concrete data collection but the proportion is estimated to be around 20-25% (9).

Target Value

Increase proportion of solid waste collection and disposal facilities by 80% in 2025 (22).

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

12.5.1 National recycling rate, tons of material recycled

Current Value

N/A

Target Value

N/A

Secondary SDGs addressed

13 - Climate Action
14 - Life Below Water

Directly impacted stakeholders

People

Urban population living in Unguja and Pemba Islands wıll benefit from the cleaner environment.

Gender inequality and/or marginalization

Artisanal fishers as they are one of the main users of inshore marine ecosystem.

Planet

Marine environment as the waste management solutions will decrease the amount of uncontrolled waste ın the sewage.

Corporates

Private companies in the value chain.

Public sector

Municipalities will be benefitted as waste management is actually under their mandate for particular regions.

Indirectly impacted stakeholders

People

Local populations living in rural areas who are also impacted from rapid waste generation in urban areas and the international visitors who will benefit from the cleaner touristic areas.

Gender inequality and/or marginalization

Women who engage more with waste and water utilization due to gender biased role division at the households.

Planet

Coral reef ecosystem of small islets near Unguja and Pemba as the islets are also affected from the uncontrolled waste accumulation on the mainlands.

Corporates

Private companies operating in tourism sector, who will be securing more tourist interaction due to cleaner destinations and marine environment.

Public sector

Government would benefit from the increasing revenues due to increased visitors as the touristic destinations will be more appealing.

Outcome Risks

Incorrect handling of solid waste might endanger both the environment and the employees' health who handle it (14).

Impact Risks

The solutions implemented may fail to provide adequate and up to date data on the output and impact created if the operators skip regular impact measurement practices.

Impact Classification

C—Contribute to Solutions

What

Promoting sustainable services for solid waste management and sewerage systems will decrease the infrastructural pressure on the urban areas while mitigating the risks arising from pollution.

Risk

If the impact measurement is not done by the business operators, impact created may not be assessed.

Contribution

IOA will contribute further to the existing waste management structure and market in Zanzibar as current practices are not adequate and result in uncontrolled waste accumulation.

Impact Thesis

Reduce environmental harm through decreased waste dumping and increased public awareness which will lead to a cleaner and healthier Zanzibar for all.

Enabling Environment

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Policy Environment

Zanzibar Vision 2020: The Vision envisages that sustainable economic development should be accompanied by proper environmental management so that Zanzibar’s natural resources and natural heritage are passed on to future generations (7).

Zanzibar Water Policy: The policy pays special attention to the implementation of environmental monitoring and control, requiring water security, water pollution, waste disposal, hygiene, drainage and sanitation issues towards provisions and supply of potable water (17).

Zanzibar Health Policy: Clean environment, chemical and e-waste management are highlighted in the policy as part of the major constraints to better health communities in Zanzibar including the workforce and communities(18).

Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP-III): ZSGRP emphasizes environmental management issues including the reduction of the environmental degradation and improvement of waste management (19).

Financial Environment

Financial incentives: World Bank has an ongoing project "Boosting Inclusive Growth for Zanzibar: Integrated Development Project" which focus on solid waste management facility of the municipalities in Zanzibar (16).

Fiscal incentives: General incentives are exemption from payment of import duty, excise duty, VAT and similar taxes on capital good. Strategic investors have more comprehensive benefits which consists long-term exemption from duties and tax, resident permit for the investor and her family etc (3).

Other incentives: 100% foreign ownership, 33 to 99 years of land lease agreement, employment of expatriates in key positions, 100% allowance for R&D activities (3).

Regulatory Environment

Urban Municipal Council Solid Waste Management Regulations, 2019: The Regulation is based on the “polluter pays principle” under which the generator has to pay a user fee or service charge on a monthly basis (20).

Public Private Partnership Act, 2015: The Act provides for partnership between the Government and a Private Partner to deliver infrastructure and services that are required in development of the Free Economic Zones (21).

Marketplace Participants

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Private Sector

Zanrec Ltd.

Ministry of Infrastructure, Communication and Transportation, Zanzibar Urban Municipal Council, Zanzibar Environmental Management Authority (ZEMA), Zanzibar Investment Promotion Authority (ZIPA), Zanzibar Water Authority (ZAWA), Stone Town Conservation and Development Authority (STCDA).

Multilaterals

UNDP, UNICEF, World Bank, Nordic Development Fund (NDF), UNEP, UNESCO, Western Indian Ocean Marine Science Association (WIOMSA), World Wide Fund for Nature (WWF) .

Non-Profit

SIDA, Centre for Science and Environment (CSE), Coastal Zone Management Centre (CZMC).

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
urban

Zanzibar: Mjini

Mjini district has the most population density in Zanzibar as well as hosting main accomodation offerings of the tourism sector, thus generating most of the waste. This demonstrates a solid need of and lucrative market for sustainable waste management solutions in the region.
urban

Zanzibar: Kaskazini

Main regions identified in a feasibility study on solid waste are Mjini Magharibi, Kaskazini A and B, Unguja Kusini, Micheweni, Wete and Pemba Kusini, indicating the regions' need for sustainable waste management solutions and puts forward a potential market for those solutions (9).
semi-urban

Zanzibar: Pemba

Main regions identified in a feasibility study on solid waste are Mjini Magharibi, Kaskazini A and B, Unguja Kusini, Micheweni, Wete and Pemba Kusini, indicating the regions' need for sustainable waste management solutions and puts forward a potential market for those solutions (9).

References

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