From Waste to Wealth – How to build a profitable business out of Africa’s huge waste market

What exactly is waste?
Waste is anything that people do not value anymore and would
love to throw away. Waste is the empty box that contained the new
television set you just got or the paper bag you used to carry the
stuff you bought at the supermarket. These things are now waste
because you have no further need for them and would like to
dispose them. However, as you will soon find out in this article,
waste isn’t entirely useless because there are people and
businesses who’ll pay to have them.
Waste will remain a part of our lives for as long as we exist. While
some people may produce more waste than others, everybody
produces it every day as leftover food, dirty water or garbage.
We shall only be considering the solid forms of waste in this article
because they appear to be more reusable than liquid waste. The
most common types of solid waste in Africa are: domestic waste
(garbage and rubbish produced by individuals and households),
commercial waste (solid waste coming from business places such
as stores, markets, office buildings, restaurants, shops, bars, etc.),
and industrial waste (produced by factories and processing plants.
Other forms of waste are agricultural waste, hazardous waste,
health care waste and electronic waste. (photo credit:
loyaltylab.com)
Why is the volume of waste generated in Africa
increasing?
According to recent estimates , the average African individual
generates half a kilogram of waste every day while businesses can
produce up to two kilograms of waste every single day! However,
the amount of waste generated on the continent is estimated to
grow very fast over the coming years. The reasons for this are as
follows:
1. A fast growing population –
Since waste is a product of human existence, it follows that the
more humans we have on the continent, the more waste that is
produced. Africa has one of the fastest growing populations in the
world with an annual population growth rate of nearly 3 per cent
over the last 20 years. With the world’s highest birth rate, its
current population of nearly one billion people is predicted to more
than double in 40 years to 2.3 billion, accounting for nearly half of
projected global growth over that period. For this growth to be
sustainable in a world that has become obsessed with
environmental friendliness, intensive waste management is bound
to play a huge role in Africa’s future.
2. Rapid economic development and urbanization –
More waste is generated in cities and towns than in rural villages.
Recent studies show that the higher the rate of economic
development and urbanization, the greater the volume of waste
produced. Africa is home to some of the fastest growing
economies in the world and the number of people moving to the
cities is growing at a staggering rate. It is estimated that up to 500
million Africans will live in the continent’s cities by 2030.
With its current rate of urbanization at 38 percent, Africa is now
more urbanized than India (30 percent) and nearly as urbanized as
China (45 percent). Currently, 52 African cities have a population
of more than one million people. By 2016, the number of cities with
more than one million people will reach 65. This outcome will
definitely lead to an explosion in the volume of waste generated on
the continent.
3. Rising levels of disposable income -
As the continent’s economy continues to prosper and more
Africans find better-paying jobs in the cities, most people will earn
more money with a little extra to spend. They will spend on, and
consume, more goods and services which lead to higher volumes
of waste. This is exactly the same principle that led to the
explosion of waste produced in China. Due to Chinese
consumption, the country currently produces more than 70 percent
of the 270 million tonnes of waste generated in the whole of East
Asia! As Africa’s consumption expands, so will the size of the
waste we produce.