Sustainable Solid Waste Management Solutions
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
- Zanzibar: Mjini
- Zanzibar: Kaskazini
- Zanzibar: Pemba
Sector Classification
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).
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.
Waste Management
Pipeline Opportunity
Sustainable Solid Waste Management Solutions
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
Market Size and Environment
> 25%
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
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
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
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Market - Volatile
Impact Case
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
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)
Maternal mortality ratio was measured as 155/100,000 live births according to Zanzibar Health Bulletin 2018 (15).
Reducing the global maternal mortality ratio to less than 70/100,000 live births (15).
11.6.1 Proportion of municipal solid waste collected and managed in controlled facilities out of total municipal waste generated, by cities
There is not a concrete data collection but the proportion is estimated to be around 20-25% (9).
Increase proportion of solid waste collection and disposal facilities by 80% in 2025 (22).
12.5.1 National recycling rate, tons of material recycled
N/A
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
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
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.
Who
Local communities will benefit from increase of waste management which will result in improved health conditions.
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.
How Much
Currently Zanzibar's municipal and private waste collection mechanism are not efficient enough. IOA would increase the waste management solutions in Zanzibar significantly.
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
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
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
Zanzibar: Mjini
Zanzibar: Kaskazini
Zanzibar: Pemba
References
- (1) African Development Bank. 2021. Gender Responsive Climate Resilient Solutions in Africa. https://www.afdb.org/en/documents/gender-responsive-climate-resilient-solutions-africa
- (2) Ministry Of Trade and Industrial Development Zanzibar. 2020. Private Sector Development Policy.
- (3) Zanzibar Investment Promotion Authority. 2022. Zanzibar Investment Guide.
- (4) World Bank. 2019. Zanzibar Tourism Integrated Strategic Action Plan. https://documents1.worldbank.org/curated/pt/993701565250577192/pdf/Zanzibar-A-Pathway-to-Tourism-for-All-Integrated-Strategic-Action-Plan.pdf
- (5) Zanzibar Planning Commission. 2020. Zanzibar Blue Economy Policy. http://planningznz.go.tz/doc/new/BE%20Policy-2020.pdf
- (6) World Bank. 2019. Zanzibar Tourism Integrated Strategic Action Plan. https://documents1.worldbank.org/curated/pt/993701565250577192/pdf/Zanzibar-A-Pathway-to-Tourism-for-All-Integrated-Strategic-Action-Plan.pdf
- (7) Revolutionary Government of Zanzibar. Vision 2020. http://www.rodra.co.za/images/countries/tanzania/policies/Zanzibar_Vision_2020.pdf
- (8) International Journal of Current Research, 2014. Municipal solid waste management of Zanzibar: Current practice, the challenges and the future
- (9) RGZ, 2018. Solid Waste Management Strategy for the Zanzibar Archipelago. Available upon request.
- (10) Sokoine University of Agriculture, 2016. Economic Analysis of Solid Waste Management Options in Morogoro Municipality, Tanzania. https://catalog.ihsn.org/index.php/citations/83715
- (11) UNEP. 2021. From Pollution to Solution: A global assessment of marine litter and plastic pollution. https://www.unep.org/resources/pollution-solution-global-assessment-marine-litter-and-plastic-pollution
- (12) International Journal of Current Research, 2014. Municipal solid waste management of Zanzibar: Current practice, the challenges and the future
- (13) Awattif Aboud et al, 2016. Challenges and Problems of Solid Waste Management in Three Main Markets in Zanzibar
- (14) Kajsa Stina, 2012. Assessment of the Waste Management System on Zanzibar
- (15) Zanzibar Planning Commission. 2020. Annual Sustainable Development Goals (SDGs) Implementation Report, 2019/2020 Zanzibar
- (16) World Bank. 2022. Boosting Inclusive Growth for Zanzibar: Integrated Development Project. https://projects.worldbank.org/en/projects-operations/project-detail/P165128
- (17) Revolutionary Government of Zanzibar. 2000. Zanzibar Water Policy
- (18) Revolutionary Government of Zanzibar. 2011. Zanzibar Health Policy
- (19) Revolutionary Government of Zanzibar. 2007. Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP-III). https://planipolis.iiep.unesco.org/sites/default/files/ressources/zanzibar_zsgrp.pdf
- (20) Revolutionary Government of Zanzibar. 2019. Urban Municipal Council Solid Waste Management Regulations.
- (21) Revolutionary Government of Zanzibar. 2015.Public Private Partnership Act. https://zanzibarassembly.go.tz/document/public-private-partnership-act-no-8/
- (22) Zanzibar Planning Commission. 2021. Zanzibar Development Plan.
- (23) ZANREC. 2022. https://www.zanrec.com/
- (24) UNDP Stakeholder Consultations. 2022.