Recognising The Informal Waste Sector

Table of Contents
Contents i
List of Tables iii
List of Figures iii
Acknowledgements iv
Acronyms v
Glossary 1
1
Introduction 3
1.1 Background to the advanced integrated solid waste management (AISWM) programme 4
1.2 Relationship between knowledge products in this series 4

1.3
Municipal socio-economic challenges with SWM 5
1.4 Perspectives on involving the informal waste sector 6

1.5
Focus of this knowledge product 8

1.6 International IWS integration models 9
2 The informal waste sector in South Africa 10

2.1 Defining the informal waste sector (IWS) 11
2.2 Background on the informal waste sector in South Africa 12
2.2.1
Activities of the IWS 12

2.2.2
Where the IWS operates 13

2.2.3
Factors driving the IWS 13

2.2.4
Misconceptions 14
2.3 Overview of the South African solid waste management sector 16
2.3.1
Municipalities 16

2.3.2
Formal recycling companies 17

2.3.3
Informal waste sector ` 17

2.4
Socio-economic realities of the IWS 18
2.5 Formal vs. informal differences 21
3 Approaches to and benefits of integrating the IWS in AISWM systems 25

3.1
What is meant by IWS integration? 26
3.2 Benefits of including the IWS in AISWM systems 29

3.3
SWOT analysis on IWS integration 30
Recognising the Informal Waste Sector in Advanced Waste Treatment i

4 Inclusion of the IWS 32

4.1
Mobilise the IWS 33
4.1.1 Planning and implementation phase - mobilisation 33

4.1.2
Operations phase - continued consultation 34
4.2 Coordinate the activities of the public, IWS and the formal recycling sector 35
4.2.1 Coordinate recycling activities of the general public with the informal and formal
recycling sector 35
4.2.2 Coordinate activities of the IWS with activities of the formal
recycling sector 35
4.2.3 Appointing a liaison officer 37

4.2.4
Facilitate a recycling forum 38
4.3 Include the IWS in a stepwise manner 39

4.4
Facilitate housing relocation assistance 40

4.5
Low-cost, short-term integration approaches 40

4.6
Facilitate procurement and ease of business 41
4.6.1 Municipal actions threatening the IWS 41

4.6.2
Facilitate a conducive business environment 42
4.6.3 Building organisational capacity of the IWS 42

4.7
Training and skills development 43

4.8
Developing outlets for reclaimed materials 43
4.9 Possible long-term integration and formalisation models 47
4.10 Considerations for facilitating formalised business models 54
4.10.1 Deciding on type of formal business model 54
4.10.2 Key success factors of a formalised business model 56
4.10.3 Getting assistance to establish a formal business 56

4.10.4
Gaining business support 57
4.11 Monitoring and evaluation rollout of pilot integration model 60

4.11.1
Monitoring during pilot project integration 60
4.11.2 Integration impact evaluation 61
5 Concluding remarks 63
References 65
Useful publications 66
Annexure 1 Where to go for assistance and support? 67

1.
Business support organisations 67

2.
Sector support partners 67
ii Recognising the Informal Waste Sector in Advanced Waste Treatment

List of Tables
Table 1 Misconceptions of informal waste reclaimers 14
Table 2 Differing perspectives of socio-economic realities of the IWS 19
Table 3 Formal versus informal waste sector differences 22
Table 4 SWOT analysis of integrating the IWS 30
Table 5 Different levels and locations of intgration opportunities 46
Table 6 Opportunities for integrating the IWS in an AISWM system 49
Table 7 Models of IWS integration 50
List of Figures
Figure 1 Relationship between knowledge products in this series 5
Figure 2 One-dimensional versus multi-dimensional approach to municipal solid
waste management (SWM) 6
Figure 3 SWM process flow in a typical South African municipality 16
Figure 4 Municipal solid waste collection by Pikitup in the City of Johannesburg 17
Figure 5 Informal waste reclaimers in the City of Johannesburg 18
Figure 6 Existing vs. improved working conditions at a material recovery cooperative 28
Figure 7 Speak to the expert 34
Figure 8 Role of the liaison officer 37
Figure 9 Opportunities for integrating the IWS in an AISWM system 48
List of Case Studies

Case Study 1
Brazil – CEMPRE NPO Model 14
Case Study 2 Costa Rica – Strategic Action Informal Sector Intergration 21
Case Study 3
Pilippines – Iloilo City 28
Case Study 4 City of Johannesburg Metropolitan Municipality 31
Case Study 5
Ekurhuleni Metropolitan Municipality 36
Case Study 6
Philippines – Linis Ganda Initiative 41
Case Study 7
Rustenburg Local Municipality 44
Case Study 8
India KKPKP and SWaCH 55
Case Study 9 uMgungundlovu District Municipality (UMDM) 58
Case Study 10 Wildlands Wastepreneurs programme 60
Recognising the Informal Waste Sector in Advanced Waste Treatment iii

Acknowledgements
The Department of Environmental Affairs would like to thank the following partners and/or individuals who have
contributed and supported the development of this document on recognising the informal waste sector in advanced
waste treatment.
◘ Dr Heino Vest: Infrastruktur und Umwelt - Professor Böhm und Partner.
◘ Dr Linda Godfrey, Researcher: Council for Scientific and Industrial Research (CSIR).
◘ Gernod Dilewski and team, Infrastruktur und Umwelt.
◘ Shenaz Moola, Project Manager: Mott MacDonald PDNA.
◘ Torben Kristiansen and team, COWl.
◘ Vuka Nkoza, General Manager: Vukuzenzele and Nkoza drop-off and sorting cooperative
in Actonville.
◘ Riaz Jogiat, Technical Manager: uMgungundlovu District Municipality.
◘ Jan Theron, Coordinator: Labour and Enterprise Policy Research Group: University of
Cape Town.
◘ Roelf De Beer, Marketing Manager: Pikitup.
◘ Richard Rajah, Manager: Waste Management, Msunduzi Local Municipality.
◘ The officials of the Branch: Chemicals and Waste Management, Department of Environmental
Affairs, for review.
◘ Jenitha Badul, Leanne Richards and Elizabeth Ntoyi (Greening Programmes and Fund Team),
Department of Environmental Affairs, for review.
◘ Brian Chapole, Department of Environmental Affairs, layout and design elements
◘ Bernhard Schenk, Julia Crause and Christian Vosseler, KfW Development Bank, for review.
This document has been produced for the department by Nanja Churr, from Kayamandi Development Services Ltd,
is the lead author of this knowledge product. Other contributing authors include Andrew Whiteman, Cosmin Briciu
(RWA), Stuart Gower-Jackson, John Coetzee (J&G) and Raimund Vogelsberger (ERM).
We apologise if we have excluded an individual or organisation.
iv Recognising the Informal Waste Sector in Advanced Waste Treatment

Acronyms
AISWM Advanced Integrated Solid Waste Management

AWT Advanced Waste Treatment
CIISC Brazilian Interministerial Committee for Social Inclusion of Waste
Reclaimers (translated from Portuguese)
CODEMAS Conselhos Municipais de Desenvolvimento Ambiental de Minas Gerais
COPAC Cooperative and Policy Alternative Centre
CSIR Council for Scientific and Industrial Research
DEA Department of Environmental Affairs
DGRV Deutscher Genossenschafts- und Raiffeisenverbande e.V.
DTI Department of Trade and Industry
EMM Ekurhuleni Metropolitan Municipality
FNLC National Waste and Citizenship Forum (Brazil)
ISWM Integrated Solid Waste Management
IWS Informal Waste Sector
KKPKP Kagad Kach Patra Kashtakari Panchayat
KP Knowledge Product
LM Local Municipality
MBT Mechanical Biological Treatment
MRF Material Recovery Facility
MSW Municipal Solid Waste
NEMWA National Environmental Management Waste Act
NGO Non-Governmental Organisation
NWMS National Waste Management Strategy
PPE Personal Protective Equipment
PPP Public Private Partnership
RLM Rustenburg Local Municipality
SANACO South African National Association of Cooperatives
SEDA Small Enterprise Development Agency
SEIA Strategic Environmental Impact Assessment
SMME Small, Medium and Micro Enterprises
SWACH Solid Waste Collection and Handling (cooperative)
SWM Solid Waste Management
SWOT Strengths Weaknesses Opportunities and Threats
UCLA Uswag Calahunan Livelihood Association
UMDM uMgungundlovu District Municipality
UNICEF United Nations Children’s Fund
VS Versus
WCT Wildlands Conservation Trust
WIEGO Women in Informal Employment, Globalising and Organising
Recognising the Informal Waste Sector in Advanced Waste Treatment v

Glossary
Terminology Definition
Advanced Integrated Solid The coherent and sustainable application of approaches and solutions
Waste Management that reduce the amount of waste that needs to be landfilled.
A specific technology or facility that alters the characteristics of waste

through physical, thermal, chemical, and/or biological processes either
Advanced Waste Treatment prior to, or in place of, landfill. AWT broadly includes the recycling and/or
recovery elements of the waste hierarchy.
Business-to-Business Supporting value-adding activities such as the production of final goods

Value Chain Interventions from recycled waste.
Cherry Picking Selective picking of the most valuable materials.
An economy where solid waste is valued as inputs into the economy

Circular Economy
without exiting the economic flow of goods after initial use.
Contaminated Recyclables Recyclable materials mixed with, or ‘contaminated’ by, other types of waste.
Corporate Social Investment Proportion of companies’ profits injected into poor communities.
The continuing commitment by businesses to behave ethically and con-

Corporate Social tribute to economic development while improving the quality of life of
Responsibility the workforces and their families as well as of the local community and
society at large.
All jobs with normal hours and regular wages that are recognised as
Formal Sector
income sources on which income taxes must be paid.
Legalising and ensuring compliance with business regulations, tax laws,

Formalisation
etc.
Aimed at addressing the most basic human rights (the right to work in a
Human Rights Interventions
safe environment).
Individuals, families or (informal) small private sector entities whose

Informal Recycling Sector activities are not organised, sponsored, financed, contracted, recognised,
managed, taxed nor reported on by the formal solid waste authorities.
That part of an economy that is not recognised or monitored by government,

Informal Sector
often not taxed, or captured in national statistics.
Methods to organise or formalise the informal recycling sector as part of

Informal Sector Integration
official waste management strategies.
1 Recognising the Informal Waste Sector in Advanced Waste Treatment

Terminology Definition
Entrepreneurs providing small-scale waste collection and cleaning

Informal Service Sector
services in rural and poor areas.
Recovery of recyclables and small-scale manufacturing by the informal

Informal Valorisation Sector
sector.
An all-encompassing term that captures the totality of informal economic
Informal Waste Sector activity in the cleaning, waste management services and recycling
sectors.
The coordinated use of a set of waste management approaches and
Integrated Solid Waste solutions, each of which has a functional role in an overall solid waste
Management management system, and that combine together as a recognisably
coherent whole.
Recyclers who go door-to-door, collecting, buying or bartering for

Itinerant Waste Buyers
materials, before they have entered the official waste stream.
Labour Force People who are able and willing to work.
An economy where solid waste exits the economic flow of goods once
Linear Resource Economy
generated.
A facility where recyclable materials are recovered and sorted. At a dirty

MRF, recyclables are sorted from mixed waste input feedstock; at a clean
Material Recovery Facility
MRF, recyclables are sorted from a separately collected mixed-dry-recy-
clable input feedstock.
A combination of mechanical and biological processes used to pre-treat

Mechanical Bioloical
the input feedstock, and produce outputs including recyclables, refuse-
Treatment
derived fuel, and/or biologically stable compost.
Formal or informal entrepreneurs and companies buying recyclables

Traders from individual waste reclaimers or companies and reselling them into
the recycling value chain.
The collection of waste from the point of generation (e.g. household or

Primary Collection commercial premises) and its transport to community containers or other
places of secondary collection, or final disposal.
Professionalisation Imparting professional skills and capacities.
Waste fraction with good combustion properties that can be used as

Refuse-derived Fuel
fuel.
The collection of waste from a place of temporary storage that is distant

Secondary Collection from the point of generation (e.g. community containers or other locations)
and transport to transfer station, treatment or landfill.
Sorting of different materials at the source of generation (households,

Separation at Source
businesses, etc.), before collection.
An integrated set of options dealing with waste generation and the

Waste Management Hierarchy disposal thereof in order of preference: Reduce generated waste, reuse,
recycle and compost, recovery of energy and disposal.
Recognising the Informal Waste Sector in Advanced Waste Treatment 2

Chapter No. 1
INTRODUCTION
1 Introduction
1.1 Background to the AISWM programme
The South African government, in partnership with the German Development Cooperation, is implementing
an advanced integrated solid waste management (AISWM) programme for the Republic of South Africa.
The programme sets out to prepare projects in pilot municipalities and disseminates knowledge,
experience and practical application of advanced waste treatment (AWT) and broader AISWM systems in
the context of South African municipalities.
AISWM is not a universally known term but is used to describe integrated solid waste management
(ISWM), making use of AWT technologies, within a framework of policies, legislation and practices that
reduce dependency on landfill for the disposal of waste. The programme defines AISWM as the coherent
and sustainable application of approaches and solutions that reduce the amount of waste that needs to
be landfilled.
AISWM is the process of advancing waste management practices up the hierarchy away from landfill and
towards creating energy, recycling and composting, reuse and reduction. AISWM does not necessarily
demand the use of sophisticated and expensive technology; rather it involves a blend of management
systems and appropriate technologies that succeed in sustainably diverting waste away from landfill.
The Department of Environmental Affairs (DEA) coordinates the programme nationally, with the Rusten-
burg Local Municipality (RLM) and uMgungundlovu District Municipality (UMDM) partnering locally. Each
of the partner municipalities receives tailored consultancy support for the preparation of AISWM projects
that may be integrated into, and be sustainable in, their local situation.
The programme intends to implement successful AISWM systems in municipalities and undertake
KNOWLEDGE DISSEMINATION AND TRAINING ON BEST PRACTICES, EXAMPLES AND LESSONS
LEARNT from the projects.
Five knowledge products (KPs) are prepared to support capacity building on AISWM across South Africa.
The KPs provide clear, concise and factual information to support decision-making on AWT and AISWM,
so that municipalities and their partners can plan and implement the next generation of facilities.
1.2 Relationship between knowledge products
KP3, RECOGNISING THE INFORMAL WASTE SECTOR IN ADVANCED WASTE TREATMENT, builds
on KP1: An introduction to advanced waste treatment, and KP2: Appropriate technology for advanced
waste treatment. It raises considerations for including the informal waste sector (IWS) in the recycling
and/or recovery elements of AISWM systems. The full suite of KPs is illustrated in Figure 1.

KP1:
An Introduction
to Advanced
Waste Treatment
KP5:
KP2:
Operator Models
Appropriate Tech-
for Advanced
nology for Advanced
Waste Treatment
Waste Treatment
Advanced
Integrated Solid Waste
Management Knowledge
Base
KP3:
KP4:
Recognising the
Financial Implica-
Informal Waste
tions of Advanced
Sector in Advanced
Waste Treatment
Waste Treatment
Figure 1. Relationship between knowledge products in this series
1.3 Municipal socio-economic challenges with solid waste management
South African municipalities face multiple challenges, which influence the status quo of solid waste man-
agement (SWM) practices, and their ability to implement new legally compliant systems that are compat-
ible with policy objectives. These include:
◘ Rapid population growth, urbanisation and consumerism, leading to increasing quantities

of solid waste.
◘ System capacity constraints for collection, treatment and disposal of solid waste.
◘ Lack of capital finance for new infrastructure and equipment.
◘ Lack of operational revenue linked to low levels of fees.
◘ Inefficiencies in service delivery caused by lack of organisational reform.
◘ Limited ability to locate and develop new landfills due to strong public reaction against such facilities.
◘ Reduced public awareness and buy-in to new approaches.
◘ The entry into the market of numerous operators, cooperatives, NGOs and waste traders, often
with competing or conflicting interests.
◘ Increasing numbers of informal waste reclaimers working on the fringes of the waste management
system, often living and working in poor conditions.
Traditionally, SWM has been regarded one dimensionally, with waste being collected and disposed of at
‘sinks’ that we know as landfills or dumpsites. However, since the inception of the National Environmental
Management Waste Act 59 of 2008 (NEMWA), municipalities are urged to adopt an integrated
multidimensional approach to SWM by applying the principles of the waste management hierarchy
in the development of their ISWM systems. The hierarchy includes waste reduction, reuse, recycling

and composting, creating energy (recovery) and disposal – with reduction being the most desirable and
disposal the least. Both approaches, one-dimensional and multidimensional, are presented in Figure 2.
Figure 2. One-dimensional versus multi-dimensional approach to municipal SWM

(Source: Adapted from DEA 2012:18)
1.4 Perspectives on involving the informal waste sector
Irrespective of the remaining landfill capacity, for municipalities to meet the goals set in the National Waste
Management Strategy (NWMS), they will have to shift practices towards multi-dimensional AISWM. This,
in turn, requires a paradigm shift in the way we think about waste and resource management. It requires
serious consideration of how existing waste management systems and practices can be changed and
improved.
Waste management systems are often complex, not necessarily technologically, but in terms of social
and economic dimensions. Working inside the system are diverse actors and stakeholders, each playing
different roles and, crucially, sometimes competing for the valuable materials in the waste stream. A new
waste management system must shape the way in which materials are managed. A new facility or
technology in that system must receive sufficient feedstock to meet its purpose and assure its viability.
Ensuring that what is planned can be implemented in reality is the art of the waste management
practitioner. Good planning requires participatory and inclusive approaches that consider all the
dynamics and different stakeholder perspectives, whilst providing an attractive climate for investment in
new systems and facilities.
The IWS is a key stakeholder group in the overall waste sector. The IWS is often unseen or disregarded
in the planning process for waste management. However, informal waste management contributes
significantly to existing levels of landfill diversion and recycling, and is much more deeply embedded in
the existing systems than many might think.
Ignoring the IWS in the planning and implementation of new, more technologically advanced SWM systems
is perilous. The IWS is very active and dynamic, driven by basic survival needs that act as a very powerful
incentive to get to the valuable materials before anyone else. On numerous occasions, well-meaning
waste management projects have failed as their planning did not take into account the existence of the IWS.
Investment projects that rely for their financial sustainability on revenues from recyclables or on capturing
the higher-calorific value materials and converting them into fuel or energy need to think very carefully
about the supply chain for these materials. To the serious investor, therefore, it is an obvious advantage
to work together with stakeholders in the supply chain, and in the waste management business that
means engaging with, or at least recognising, the IWS.
Once a decision is taken to involve the IWS in a more advanced waste management system, the next
step is on building on an existing recycling system in a way that incentivises the type of change desired.
To the investor, new AWT facilities need the feedstock they are designed to receive, so the key is to
capture the materials and ensure that the supply chain is reliable and dependable at stable cost. To the
policymaker, the social dynamic offers a chance to improve livelihood opportunities, promoting
entrepreneurship and creating decent jobs.
Key socio-economic questions:

The selection of best options for including the IWS in AISWM needs careful assessment.
Municipalities have to address key SOCIO-ECONOMIC questions:
◘ How big is the IWS and what activities does it perform?

◘ Should the IWS be included, absorbed, integrated or formalised? If so, how?
◘ What conditions are required for integrating the IWS?
◘ How can socio-economic conditions of the IWS be enhanced?
◘ What are the risks and opportunities involved in integrating the IWS?
◘ What contributions are expected from the municipality?
◘ Are there benefits and do they outweigh the costs?
◘ Can the IWS be a valuable and significant partner in SWM service provision?
◘ Which underlying socio-economic structures (social/ethnic groupings, child/adult, men/
women, etc.) and business dynamics (middle-men, dependency on transport/logistics,
price fluctuations, objectives of buy-back centres, capital and infrastructure support, etc.)
impact the performance of the IWS?
◘ Where in the value-chain do the recyclers/reclaimers and other members of the IWS operate,
should all be retained, and where are they likely to be most effective?
Exploring solutions to these questions is crucial given that survival strategies of IWS depend on their
ability to collect and trade recyclable materials with market value to earn daily income. These people are
among the most vulnerable members of society and often have very few, if any, alternative livelihood options.
Municipalities increasingly want to include informal waste reclaimers, but they have minimal knowledge of
what should be done, how it should be done and what options exist.

1.5 Focus of this knowledge product
KP3 covers a wide range of issues, from understanding the working conditions of informal waste re-
claimers to recognising their benefits, and possible suggestions for municipalities to include the IWS in
advancing SWM practices and reducing dependency on landfill.
The insights offered are based on a review of several mainstream studies, experiences in the two partner
municipalities, cases elsewhere in South Africa and internationally. Consultations were undertaken with
specialists with relevant experience of informal sector integration in the South African waste
management sector.
Exploring the possible contribution of the IWS in modern waste management systems is challenging.
Whilst there is increasing recognition globally of the importance to support the IWS, and the need to
design new SWM systems around existing systems, rather than to replace them, it is an emotive subject
on which there has been very little substantive research and that is lacking quantitative data.
KP3, therefore, attempts to capture and distil the best available information on the subject, in the hope
that greater understanding will lead to pragmatic decision-making and more practical and resilient AISWM
systems.
The aim of this document is to consider whether to include, recognise, organise or formalise
the IWS (in AWT and AISWM), currently functioning without proper structure, and suggest
how this can be successfully undertaken.

1.6 International IWS integration models
To have a clear view of available integration models, several international and national case studies were
reviewed to find and understand integration options, lessons to be learnt and benefits of IWS integra-
tion. Five international case studies are presented in this KP, interspersed through the text.
International IWS integration models
1. Costa Rica – Strategic Action 2. Brazil – CEMPRE 3. Philippines – Iloilo City

Informal Sector Integration (Business Commitment for Inclusive and efficient model for
Ensure continued employ- Recycling) Non-Profit Model organising waste reclaimers
ment for informal workers in Social inclusion through recycling
a renewed SWM system
4. Philippines – Linis Ganda 5. India – Kagad Kach Patra Kashtakar Panchayat

Social inclusion and protection of (KKPKP) and Solid Waste Colletion and Handling (SWACH)
informal waste pickers and recyclers Waste reclaiming as a socially relevant, economicaly
productive and environmentally beneficial activity

Chapter No. 2
THE INFORMAL WASTE
SECTOR IN SOUTH AFRICA
2 The informal waste sector in South Africa
2.1 Defining the informal waste sector
The IWS has played an important role in SWM for centuries. Informal recyclers extract materials with a
positive market value from different parts of the waste management system and form an integral part of
the value chain for these materials.
Their work represents a net saving to municipal budgets, through diversion of waste away from landfills,
as the management of extracted materials is a financial cost to municipalities. Nevertheless, the activities
of the IWS currently fall outside of the tax-net of society, and therefore the direct financial contribution to
municipal balance sheets is negligible.
The indirect social and economic contribution of the IWS is hotly debated. Some consider the informal
waste economy a poverty trap that needs to be eradicated in a modernising economy. Others maintain
that informal reclamation provides an accessible livelihood opportunity for the poor, which is needed to
enable people to earn a living and provide for their families.
The National Waste Management Strategy (NWMS) of 1999 tried to eliminate informal salvaging at
landfills. There is now recognition that the government has a growing social responsibility to try and
support the IWS to sustain livelihoods.
So what actually is the informal waste sector?
In simple terms, the IWS can be defined as: ‘individuals, families or (informal) small private sector entities
whose activities are neither “organised”, sponsored, financed, contracted, recognised, managed, taxed
nor reported upon by the formal solid waste authorities ’.
Another definition for the IWS is ‘individuals or (informal) small and micro-enterprises that intervene in
waste management without being registered and without being formally charged with providing waste
management services ’.
(Source: GIZ 2011:8 and Medina From GIZ 2011:8)
The informal sector is a part of an economy that is not sponsored or monitored by any form of government,
nor taxed, nor included into the gross domestic product, unlike the formal economy. The majority of the
IWS consists of self-employed waste reclaimers working individually, as groups or as families.
Informal work provides crucial livelihood opportunities for the poor, alleviates poverty and functions as a
buffer between employment and unemployment. Most people working as small farmers, street vendors/
hawkers/traders, micro-entrepreneurs, home-based workers, street reclaimers and artisans belong to the
informal sector.

2.2 Background on the informal waste sector in South Africa
The waste sector, like many other commercial sectors in South Africa and other middle income countries
around the world, has a very active informal sector that has been reclaiming and recognising ‘waste’ as
a resource for decades.
The IWS does function, at times, with a surprising degree of internal co-operation. On the working face
of a landfill site, for example, there is often some form of order within apparent chaos. Division of access
rights to materials is common, which reflects on the status of the reclaimer within the social group, and
the business relationships each individual has within the recycling value chain. On the streets, different
informal reclaimers often concentrate on different materials based on their commercial relationships
within the supply chain networks they serve.
2.2.1 Activities of the IWS
The IWS can be categorised according to four types of activities it performs1:
1. Waste collection and transport: Occurs in low-income areas not served by municipal waste
collection services. Entrepreneurs provide this service and might charge a pick-up fee to
residents. Long distances and the lack of transport are key stumbling blocks and tend to prevent
the IWS from growing organically and financially.
2. Cleaning services: Sometimes informal workers perform other waste-related services such as
street sweeping and cleaning of public facilities.
3. Recovery of recyclables: The most common activity in South Africa in which itinerant waste
buyers go door-to-door, collecting, buying or bartering for valuable materials, prior to formal
collection, or “cherry picking” of materials (ie extracting the most highly valued materials) from
landfills or bins and bags placed out on streets prior to municipal collection for reuse or recycling.
4. Manufacturing activities: Individuals or informal enterprises sometimes make use of unprocessed

recovered material as raw materials (e.g. aluminium and textile waste). This may include formal
enterprises that have contracts with businesses. Businesses now regard the waste hierarchy as
a means of improving their bottom lines.
Informal waste collection and transport (item 1 above) and the provision of other waste related services
(item 2) are referred to as the informal service sector and these activities are found mostly in unserviced
areas (including rural, urban and informal settlements) in South Africa. The recovery of recyclables
(item 3) is the largest informal waste activity in the country, whilst manufacturing activities (item
4) occurs sporadically. Whilst the IWS is involved with all of the earlier-mentioned activities, the most
relevant activity for many municipalities is item 3, recovery of recyclables, and this is also the focus of
KP3.
Informal reclaimers extract solid waste with value for either personal or commercial re-use, re-use with
repair, recycling or composting. By engaging in these activities, the IWS creates environmental and
1
Source: Adopted from GIZ 2010

financial benefits for municipal authorities, helping them to reach recycling targets, minimise the need
for waste collection and disposal and save valuable and expensive landfill space. No relevant data is
available, but global research has shown that the IWS can save up to 20% of a municipality’s SWM
budget 2.
The informal sector in general makes up a significant portion of the economy in South Africa, and employs
approximately 2.5 million people (18%) of the labour force (Statistics South Africa, 2014). The full extent of
the specific IWS activities is hard to quantify due to lack of proper data.
Nonetheless, considering the global benchmark estimate for low- and middle-income countries3, that 1%
of the urban population in developing countries survives by reclaiming recycled material from waste, the
IWS in South Africa is conservatively estimated at approximately 150 000 people4 (approximately 0.4%
of the total urban population, or 6% of the total informal sector).
2.2.2 Where the IWS operates
Recyclables in South Africa are recovered from four main sources: Landfill sites, dumpsites, kerbside
(household or communal bins) and businesses. Cherry picking often occurs. This entails the selective
picking of the most valuable materials. Street picking by the IWS is often associated with littering, as the
reclaimers sift through valuable waste, which in turn increases the municipal workload and associated
collection and street cleaning costs.
Despite recycling efforts by formal companies and informal waste reclaimers, 90% of solid waste in South
Africa, for which data is collected, still arrives as mixed waste on landfill sites. The IWS is, therefore,
attracted to landfills, and often live on or next to landfill sites. When the IWS operates from the working
cell of a landfill, especially in busy city landfills using heavy machinery, the recyclers encounter significant
health and safety hazards and impede site operations.
2.2.3 Factors driving the IWS
The IWS in South Africa is driven purely by financial or economic incentives. For some reclaimers, it is
the only income possibility, while for others it remains a first choice given the low entry barriers, low skill
requirements and relative freedom of the sector. The IWS collects recyclables and sells them to brokers
or private recycling companies for a daily income. Informal waste reclaimers are typically poor South
Africans and illegal immigrants.
2
UN Habitat 2010: 1
3
UN Habitat 2010: 1
4
This is a rough estimate based on field observations of numbers of landfill recyclers, and the application of a ratio of 1:2 for
landfill recyclers to collection recyclers. This is a conservative estimate as it focuses only on the recyclers and not on other
parts of the IWS (i.e. service providers and cleaners). However, more structured and extensive analysis would be required for
a more accurate figure.

Case Study 1 — Brazil – CEMPRE NPO Model
Brazil has approximately one million people working in the recycling sector (formal and informal). Only
10% of informal waste reclaimers are well organised and the majority work and live under very poor
conditions. With the establishment of the National Solid Waste Policy, the situation changed. The policy
supports recycling with the participation of informal waste reclaimers in cooperatives or as associations
– a model that is currently implemented in many countries.
The goal was to mobilise waste reclaimers and equip them and the waste picker cooperatives to
exercise the role they have in the new SWM system. The cooperatives are responsible for the sorting
and preparing of recyclables for advanced recycling processes further down in the value chain. The
new SWM system limits opportunities for exploitation by traders, reduces risks, increases income for
waste reclaimers and increases the quantity and quality of recyclables. Workers are also trained and
qualified.
Sorting of waste in Brazil
(Source: CEMPRE 2010: 3)
2.2.4 Misconceptions
The existence of the IWS is undervalued and largely ignored by society. Its contribution to the formal
SWM system is associated with several misconceptions, as described in Table 1.
Table 1: Misconceptions of informal waste reclaimers
Misconception Reality
Informal waste reclama- Internationally, the IWS has been in existence for thousands of years.
tion and recycling are Indeed, the whole topic of waste management was largely informal every-
recent phenomena where up until recent modern times. For centuries, people have melted
leftover gold, copper and bronze to make new objects. In South Africa, the
fact that the IWS was addressed as a concern in the 1999 NWMS suggests
that the existence of the IWS has been officially recognised for at least 20
years.

Misconception Reality
All informal waste Informal waste reclaimers are often misjudged due to their appearance
reclaimers are indigent and lack of hygiene, which is caused by the nature of their work. Although
some informal waste reclaimers are extremely poor and earn less than the
and extremely poor minimum wage, others earn more than a minimum wage, and some can be
quite wealthy. Being an unregulated sector, traders or other intermediary
agents often exploit frontline reclaimers, and underworld hierarchies thrive.
Informal reclamation Informal waste reclamation plays a significant role in supplying raw materials
and recycling are for industries. Many downstream industries depend on materials extracted
insignificant activities by the IWS. Data for South Africa shows that 70%-90% of glass, plastic and
paper is recovered by the informal sector for recycling (BMI, 2013).
Recycling cooperatives Recycling cooperatives are becoming increasingly active in selected

are not involved in services. Often they are not working on the basis of a structured procure-
providing SWM services ment contract. Hence, they can be vulnerable to manipulation and control
of those that want to profit from unregulated working practices. By their
structure, cooperatives in general are open to conflict, dissent and dis-
agreement and are, therefore, not strongly placed in positions demanding
efficiency, entrepreneurship, strong leadership and toughness in
negotiations.
Informal waste reclama- Even though most informal waste reclaimers are not affiliated to a formal
tion and recycling are organisation, they have specialised systems of division – territorial divisions
disorganised activities and agreements with residents, stores and industries. They also work in
groups depending on the types of materials they collect. Sometimes entire
families work in this sector, and have done so for generations.
Informal waste reclamation The economic impact has not been accurately quantified, but the financial
and recycling have minimal footprint is larger than anticipated due to the sheer quantities of waste
economic impact extracted and recycled. In Brazil, the IWS is estimated to have an annual
turnover of more than $3 billion. The World Bank estimates that more than
15 million people in urban areas in developing countries are active in the
IWS.
Informal waste reclaim- Informal waste reclaimers can leave a messy trail. However, their livelihoods
ers are a nuisance that depend on their activities and efforts to replace them in formal recycling
must be eliminated schemes often fail. An unregulated IWS will always get to the valuable
materials before the formal collections, regardless of what measures are
taken to prevent them from doing so. Currently, the IWS is permitted on
sanitary landfills, but this practice is extremely hazardous and disruptive
to daily operations. As regulatory controls become stricter and AISWM
systems are implemented, there will be fewer “rich pickings” on the landfill
and the practice of dumpsite picking will gradually reduce.
Informal waste reclamation Even if AWT techniques are adopted, the role of informal waste
and recycling have no reclaimers will remain important. The IWS provides a low-cost, labour-in-
place in modern waste tensive approach to AWT systems and income opportunities to those who
management systems may not wish to be formalised. Informal waste activities should be taken
into consideration in the design and implementation of waste management
systems, or there is no guarantee that new systems will work as envisaged.
Informal waste re- Most informal waste reclaimers prefer receiving income daily rather than
claimers would prefer weekly or monthly – they depend on cash in hand for day-to-day living.
a higher income paid Many also note the benefit of flexible working hours when they work for
monthly or weekly themselves. Some informal waste reclaimers are reluctant to take part in
a system where their income patterns will change and they will become
dependent on employers.
(Source: Adapted from Medina undated from GIZ 2011)

2.3 Overview of the South African solid waste management sector
The existing SWM process flow in a “typical” South African municipality is shown in Figure 3.
Figure 3. Solid Waste Management System Process Flow in a Typical South African Municipality
(Source: Adapted from CSIR Guidelines for Human Settlement Planning and Design Volume 2 Chapter 11: 1)
In most municipalities in South Africa, solid waste is not being separated at source, resulting in reduced
market value for extracted “dirty” recyclables from the mixed waste stream. After the waste generation
point, there are three key players that influence and define the specificities of the SWM system:
Municipalities, formal waste management operators and the IWS. The roles of these three entities are
described below.
2.3.1 Municipalities
Legislation prescribes SWM as the responsibility of municipalities. Despite enactment of the NEMWA,
the SWM system in many parts of South Africa remain similar to that of a typical developing country. The
Act urges municipalities to implement the waste hierarchy, but in practice municipalities are compelled
by the constitution only to ensure waste collection and disposal, a de facto one-dimensional approach to
municipal SWM that focuses on the collection of solid waste from source and transport to landfill sites.

Figure 4. Municipal solid waste collection by Pikitup in the City of Johannesburg
(Source: www.joburg.org.za; www.pikitup.co.za)
Currently, the majority of MSW still ends up on landfill sites or dumpsites, with very few alternative formal
systems for diverting materials (reduce, reuse, recycle) in place to manage solid waste.
A select number of municipalities do, however, have small-scale recycling systems, but these are mostly
in their infancy. Waste sorting and recycling are entrusted to formal recycling companies in the private
sector and the IWS.
INDUSTRIAL SECTOR: COMMUNAL DROP- PRIVATE HOUSEHOLDS:

Largest quantity of OFF BINS: Marginal Marginal collection from
waste collection (large waste collection from households separating
shopping centres, bins placed by the waste at source.
banks, industries, etc.) company.
2.3.2 Formal recycling companies
After collection, recyclable materials are taken mostly to private facilities for further sorting and processing.
Once recyclables are processed, they re-enter the production economy as input materials.
In some cases, solid waste goes through a material recovery facility (MRF), which is a mechanical or
manual separation plant, specialising in extracting recyclables. A distinction is made between a “clean
MRF”, which accepts waste streams that have already been separated at source (e.g. recyclables and non
-recyclables), and a “dirty MRF”, where mixed municipal waste arrives at the facility. MRFs are developed
mostly by formal recycling companies, but selected municipalities in South Africa already have MRFs or
are establishing them.
2.3.3 Informal waste sector
The IWS collects recyclables mainly from landfills, dumpsites and waste containers.

Informal waste pickers
The IWS in South Africa can be seen as a by-product of South Africa’s economy, which is currently
unable to meet the employment needs of society, prompting individuals and communities to
seek income from valuable materials in the waste.
Due to the large number of informal waste reclaimers in the sector, the quantity of materials collected by
the IWS is by no means minimal. The recyclables are either self-used or sold directly to private recycling
companies or to traders such as recycling brokers, dealers or wholesalers. These recyclables then follow
the processing and production cycle in Figure 3.
Figure 5. Informal waste reclaimers in the City of Johannesburg

(Source: Kayamandi 2013)
2.4 Socio-economic realities of the informal waste sector
Perspectives on the socio-economic realities of the IWS differ. Table 2 provides general comments to six
different socio-economic factors from the perspectives of IWS members, municipal leaders/managers
and the general public. The responses are simplified and partly stereotypical, but provide a useful basis
for understanding the differing views and positions of these key stakeholder groups towards the IWS.

Table 2: Differing perspectives of socio-economic realities of the IWS
FACTORS
IWS MUNICIPALITIES PUBLIC
Attractive livelihood because Where informal waste re- Want reliable waste col-
of ease of entry. claimers collect waste, they lection service delivery.
Limited “other” opportunities don’t provide a reliable See informal waste
LIVELIHOODS AND
because of limited skills. service- leaving the munici- reclaimers as a

EMPLOYMENT
Work for themselves with pality to clean up after them. nuisance because they
freedom of movement. The IWS has no access to can leave a mess.
Appetite for risk is low with unions or regulatory bodies. Perceive IWS to be linked
low rate of job change often Due to the informal nature, to criminal activities such
following lead of family. taxpaying jobs and taxpaying as housebreaking.
businesses are unable to
compete with the IWS.
Unhygienic and dangerous Aware of unhealthy, Perceive landfills and

conditions, exacerbated by the dangerous and unhygienic drop-offs as unsafe
public habit of mixing dirty waste living environments. and use these public
HEALTH AND SAFETY
with valuable materials. Safety at landfills has a major areas with caution.
Health issues from poor and harsh impact on landfill operations Informal reclaimers are
working conditions. and risk/liability to the seen as a threat to health
IWS unaware of health risks and municipality. and safety due to nuisance
potential for lower life expectancy. Waste reclaimers often from cherry picking.
blamed for vandalism Perceive kerbside col-
(breaking down of fences, lectors as introducing
theft of infrastructure). crime into suburbs.
Unaware of the
long-term benefits to
themselves or the IWS.
Intense physical labour under Cause operating problems for The public choose not to
harsh conditions (sun, heat, rain). landfill managers. see working conditions –
CONDITIONS
Long hours (early mornings and Realise lack of regulation/ oblivious to the working
WORKING
into the night), often to avoid legislation on working condi- conditions of the poor.
persecution or the elements. tions. Wants to regulate activi- Public perception of working
Great distances to walk to ties at landfills, but can’t easily conditions of the IWS is
collect and sell recyclables. control access and does not limited mostly to street
want to impede on livelihoods. reclaimers.
Live on landfill sites, informal set- The government has a con- The public are oblivious to
tlements or on the streets as close stitutional responsibility to people living in and among
as possible to their source of improve living conditions and waste at landfills in makeshift
LIVING CONDITIONS
livelihood (waste). provide access to decent housing made from waste.

Shelter often constructed from housing. Informal waste reclaim-
waste materials. Legislation makes no provision ers sleep in the streets,
Often no distinction between for reclaimers on landfill. under boxes, wherever
working and living environment. they can, and cause a
Often have right of tenure on the nuisance and an eyesore .
landfills but experience increasing The public is not aware
opposition. that reclaiming is an often
a consequence of poverty
or homelessness.

FACTORS
IWS MUNICIPALITIES PUBLIC
Complete families, women Municipal officials have very The public misjudge waste re-
and children are involved. little status quo information on claimers due to the way they
Men are often involved in the the IWS. look and lack of hygiene.
more manual labour such as Often turn a blind eye to Perceptions limited to what
pushing heavy street trolleys. aspects such as child labour. is seen in the streets - trolley
DEMOGRAPHICS
Women can, however, work Immigrants cause havoc, pushers, homeless, etc.
equally hard (if not harder). upheaval and social tension in Often unaware that women
Women can work and communities. and children are involved, or
earn an income, while turn a blind eye.
taking care of children and Child labour is frowned upon
other household tasks. by the general public.
Attracts many immigrants
due to absence of systematic
checks on working visas.
Informal recyclers are, to a large Do not know how best to deal The general public perceives
extent, poor and low skilled. with the IWS. trolley brigades as a nuisance
They do not have the financial Have very little information to drivers, as they take up
VULNERABILITY AND OBSTACLES
means or technology to advance and data of the IWS and thus space on the roads and cause
on their own in the recycling a vague understanding of the traffic hazards.
sector. sector dynamics.
Informal recyclers are prone to Reluctant to acknowledge and
economic fluctuations given that accept the reality of the socio-
solid waste is linked to economic conditions faced as
consumption, and the value this requires implementation
chain linked to global commodity of policy actions to address/
prices. integrate/include the IWS.
Limited transport capabilities,
therefore reclaim only material
that takes up the least space and
will give them the most money.

Case Study 2 — Costa Rica – Strategic Action Informal
Sector Integration
The integration of the informal sector was chosen as a priority area in the country’s newly developed
Solid Waste Management Strategy – especially the facilitation of recycling systems in municipalities. The
economic feasibility of recycling facilities was carefully considered in each municipality before several
buyback, sorting and recycling centres were established, which are managed by small enterprises con-
sisting of former informal waste reclaimers. Informal waste reclaimers also benefited from public and
private social programmes.
Best practices include:
◘ Integration of enterprises in the overall municipal SWM systems.

◘ Establishment of social programmes aimed at creating special productive linkages.
◘ Gives support to innovative activities of micro-enterprises.
◘ Creation of alternative employment programmes.
Micro-enterprises in Costa Rica
(Source: GIZ 2011: 28)
2.5 Formal vs. informal differences
The IWS in South Africa is unofficially accepted or at least tolerated as part of the current SWM system.
However, harsh realities and inequalities are noted when comparing it to the formal sector. Key differences
are summarised in Table 3.

Table 3: Formal versus informal Waste Sector differences
Attribute Informal Sector Formal Sector
Demographics No restrictions on participants. Participation is regulated by labour

Profile typically includes: Illegal law and all employees must be of
immigrants, migrants from working age. Immigrants must have
neighbouring countries or rural work permits.
areas, children, laid-off workers,
elderly, who do not receive enough
pension, disabled, who cannot find
regular employment, etc. Consists
of either families working together
or individuals (Source: GIZ 2011).
Can also include community groups
that want to see their areas clean.
Entry Barriers No formal barriers to entry, any Must have a formal agreement or
individual/group can get involved. contract in place.
There is, however, a pecking order.
Obstacles to entry include: Low
market prices, long distances and
limited transport, exploitation by
middle men, and limited access to
buyback centres.
Logistics No or poor transport means Have typically invested in good

dependence on intermediate traders logistics systems as this is key to
for transport of materials over long their business.
distances.
Skills Use self-accumulated, streetwise May have more advanced skills and/
skills not part of formal schooling or formal qualifications.
system. Highly skilled in various Labour is organised and costly.
waste streams, knowledge of
locality, politics, pecking order, etc.

Health and Safety Participants face high risk High cost of implementing health
accompanied with low life expec- and safety measures.
tancy. No regulations or health and Low risk of health and safety due
safety measures. Workers are often to regulated circumstances as well
ill-informed regarding hazards. as safety and health measures
Usually they receive no vaccination required by law.
and no health checks. Access to personal protective
equipment (PPE).
Living Conditions Informal reclaimers often reside on Improved living conditions in

or adjacent to landfill sites or illegal general.
dumping sites with precarious living
conditions and limited to no access
to basic services.
Vulnerability Highly vulnerable to social and Less vulnerable to shocks with more
economic conditions. Operate social and economic certainty.
individually. Limited or no access to Work collectively with a pool of
social security schemes and no pro- resources available.
fessional recognition. Can, however, be vulnerable as
have invested considerable funds
into business.
Market Prices The market is highly unregulated. Formal players have greater ease of
Informal sector is often exploited access to more diversified markets
by middlemen and formal recycling to negotiate better market prices
companies and often has to accept based on economies of scale
the lowest non-market related and prospects for direct sales to
prices. recycling companies.
Income They gain relatively low and/or Formal employment is associated

irregular income. It does, however, with more regular and reasonable
constitute a livelihood and survi- levels of income, but higher costs of
valist strategy with minimal operation.
to no operating costs.

Competition Competition for valuable materials Competition is lessened since

among themselves and with other formal players work collectively.
individuals in the informal market as Workers still compete with the IWS
well as from the formal market. for valuable materials to earn an
extra income. Can easily access
funds.
Technologies Manual, labour intensive methods Formal sector uses a combination

are employed by informal workers. of labour and technology. More
They lack working- and PPE. More advanced collection and transport
effective, efficient or productive in equipment. More costly, more
collection at lower cost. overheads, lower productivity.
Working Conditions Poor working conditions in unpleasant Average conditions with work hours
and dangerous conditions. Irregular, regulated by South African labour
long and sporadic working hours. law.
Legislation Informal players are unprotected by Formal players have legal protection.
labour legislation.
The attributes of the informal and formal recycling sectors are, in many cases, starkly different. Entry into
the IWS is unrestricted, health and safety measures are unregulated, income is irregular and working
hours are sporadic, to name but a few.

Chapter No. 3
APPROACHES TO AND
BENEFITS OF INTEGRATING
THE IWS IN AISWM SYSTEMS
3 Approaches to benefits of integrating the IWS in AISWM systems
3.1 What is meant by IWS integration?
Competition for recyclables in low-and middle-income countries around the world between the IWS and
formal waste management systems, and specifically between informal recyclers and the public sector
service chain and private waste management companies, often trigger interventions based on the
concepts of integration or formalisation.
The most widely adopted generic types of integration approaches, each with a subtly different aim
(with the exception of formalisation), are:
◘ Welfare-based interventions: Aimed at improving day-to-day socio-economic conditions, such

as focusing on daily needs of waste reclaimers and their children. The political and social forces
that influence waste reclaimers’ position are, however, not addressed.
◘ Human rights interventions: Aimed at addressing the most basic human rights, such as the
right to work in a safe environment, or the right to have access to basic services.
◘ Adaptation interventions: Aimed at advancing and improving IWS activities in SWM systems
and making the SWM system more efficient. One example is the municipal adaptation of by-laws/
regulations and incentivision of formal recyclers that partner with the IWS.
◘ Business-to-business value chain interventions: Supporting value-adding activities such as
the production of final goods from recycled waste.
◘ Professionalisation interventions: Aimed at providing professional skills to the IWS and
helping informal waste reclaimers to advance their position. An example is assistance with setting
up contracts or partnerships between the formal and informal sector.
◘ Formalisation interventions: Aimed at legalising the IWS and ensuring compliance with
business regulations, tax laws, etc., such as establishing a formal cooperative.
Integration initiatives have been implemented through various interventions from national and interna-
tional organisations. Projects with a long and sometimes successful history can be found in many parts
of the world and are starting to become more common in South Africa.
Integration equals recognition

Integration means to provide reclaimers and other members of the IWS with recognition for the role
they play in SWM and to involve them more greatly. Recognition is often guided indirectly by the rights
of workers in the formal recycling sector, which include a stable labour programme and conditions,
income security, social protection and the right to associate and organise.
(Source: WIEGO 2010)

Whatever the approach, multiple and meaningful choices need to be offered to the IWS. Informal waste
reclaimers have different skills sets, personal needs, circumstances and aspirations. Furthermore, not all
waste reclaimers can or wish to be ‘’integrated’’. Interventions, therefore, require a combination of
approaches, with the selection process driven by the reclaimers themselves.
An understanding and a measurement of the informal sector activities are imperative. A useful first step
is to register reclaimers on a municipal database to enable the municipality to gather information on
recyclables in the development of accurate waste information systems.
Once a decision has been made to pursue an AWT project, the role of the IWS in the eventual ISWM
system should be considered. Competition between the IWS and formal waste management systems,
and specifically among informal recyclers, the public sector service chain and private waste management
companies, needs to be considered in project design. Studies can be integrated in the project planning
process to build the understanding and essential data required during initial conceptualisation and more
detailed feasibility stages of project preparation.
Whilst analysing the current situation, understanding the inter-relationships between different parts of the
system is critical. In the end, all parts are related to one system, and the interventions designed for one
specific part will affect all other parts as well.
There is no one solution that fits all. Integration initiatives need to be tailored to the local situation.
Win-win solutions are needed that benefit municipalities, the formal recycling sector, the local
community and informal reclamiers.
Progress often depends on who controls the integration initiative; who “owns” the process, and how it is
“framed”. Analytical questions that can be raised include:
◘ What is the desired change in the service and value chains?

◘ Will there be reduced or restricted access to recyclable materials?
◘ Which materials need to flow where to make the project work?
◘ Are there safeguards in place to assure that the materials required for a certain AWT project will
actually flow in the desired direction? Are these realistic?
◘ Which stakeholders are likely to benefit and which will be put at risk?
◘ Have the potential contributions and needs of waste reclaimers been considered?
◘ How will the change be implemented and measured?
Integration initiatives need to be professionally managed, drawing on past experiences. As time progresses,
these interventions can be adapted to better fit local dynamics and experiences of what works and what
does not work. The bottom line is that specific local solutions have to be found for existing problems and
objectives. Figure 6 illustrates the IWS at work: Existing vs. improved working conditions.

Case Study 3 — Philippines – Iloilo City
The Iloilo City Municipality and the GIZ re-energised an informal waste reclaimers group at a disposal site
in Iloilo. They assisted the group of 140 reclaimers with registering as a formal incorporated association,
called Uswag Calahunan Livelihood Association, Iloilo (UCLA). Group members received training in the
sorting of alternative fuel resources in cooperation with the cement manufacturer HOLCIM, and in sewing
recycled bags together with alternative self-initiated livelihood activities.
The group initiated other income-generating activities and also established a training centre, through
which it was also able to provide social facilities such as childcare and health checks.
Best practices included:
◘ Trust-building efforts (IWS, municipality, private sector).

◘ Good communication, consensus and frequent meetings.
Sorting waste in the Philippines
(Source: GIZ 2011: 33)
Figure 6 illustrates unimproved vs. improved working conditions
Figure 6. Existing vs. improved working conditions at a material recovery cooperative

(Source: www.joburg.org.za; Kayamandi 2014)

3.2 Benefits of including the IWS in AISWM systems
The IWS is very active and effective in recovering and valorising resources, in many cases more so than
the formal sector. The IWS can implement recycling activities at a much lower financial cost than
the formal sector.
As a result of their established role in the industrial value chain, informal entrepreneurs have considerable
experience and can relatively easily learn to divert and process whatever material is not already claimed
and valorised. The IWS has a high degree of specific knowledge about identifying the value of materials,
marketing and making use of them in a flexible manner.
Job creation potential
According to research carried out in the Mokattam District of Cairo, Egypt, where the Zabaleen
community recycles part of the city’s waste, a daily ton of waste can produce up to seven direct,
indirect, and induced jobs. This is driven by the larger number of jobs created per ton of material that
can be recycled, traded and used for downstream manufacturing of products.
Social, environmental and economic benefits of IWS
Social benefits
◘ Improved working conditions, decreased health and safety risks and increased productivity.
◘ More regular and stable income.
◘ Improved living conditions for informal waste reclaimers and their families.
◘ Reduced opportunity for exploitation.
◘ Better access to healthcare facilities.
◘ Increased identity and self-worth.
◘ Access to microfinance, enabling small, medium and micro enterprises (SMMEs) to form and grow.
◘ Personal development and career prospects.
Economic benefits (to society)

◘ Saving on public budgets from avoided waste collection and downstream (formal) recycling,
treatment and disposal.
◘ More customer-responsive source separation services.
◘ Increased quality and value of recyclables.
◘ Stimulated downstream manufacturing economy.
◘ Contribution to the government’s economic growth, development and employment goals.
Environmental benefits
◘ Reduced dependency on landfill, with associated reduction in environmental impacts.
◘ Reduced CO2 equivalent emissions through reduced demand on virgin resources.
◘ Recycling services brought closer to the community catalysing environmental awareness.
Various approaches can be taken to integrate the IWS into the SWM system, and these can bring social,
economic and environmental benefits. As previously presented, the integration of IWS activities into
AISWM systems is worthwhile, if not essential. Possible benefits are summarised as follows:

3.3 SWOT analysis on IWS integration
A municipality has to consider the route of integrating the informal sector, particularly key Strengths,
Weakness, Opportunities and Threats (SWOT). Table 4 elaborates on the IWS through a SWOT
analysis.
Table 4: SWOT analysis of intergrating the IWS
BENEFICIAL ASPECTS HARMFUL ASPECTS
STRENGTHS OF INTEGRATION WEAKNESSES OF INTEGRATION
• Collective skills and exchange of knowledge. • Prefer self-employment (‘I want to be my own boss’).
• Little regulation and few rules in informal

• Shared vision and decision-making.
sector.
• Pooled resources and increased capacity. • Revenue and profits need to be shared.
• Enhancement of skills and knowledge. • Increased overhead cost.

INTERNAL ORIGIN
• Overcoming individual limitation. • More discipline and less freedom.
• More resources (labour, equipment) available. • Potential for disagreement, disputes, conflict.
• Protected by labour law. • Irregular waste collection.
• Potential housing issues (many waste reclaimers

• Regulated and organised activities.
live on landfills).
• Higher/regular/more stable income. • Stifling effectiveness or efficiency by regulation.
• Poor business acumen threatens sustainability,

• Improved working conditions.
which threatens service delivery.
• Improved social protection and healthcare.
• More efficient system.
OPPORTUNITIES OF INTEGRATION THREATS OF INTEGRATION
• Improved bargaining and negotiation powers. • Global recession and fluctuating markets.
• Competition between formal and remaining

• Improved market access.
informal, with cherry picking of waste.
• Access to new market segments. • “Underworld” and informal hierarchies.

EXTERNAL ORIGIN
• Shortage of entrepreneurial skills to develop

• Less exploitation.
potential marketable items from waste.
• Mechanisation (high-tech, low-labour means

• Diversification of SWM activities.
of minimising waste).
• Improved livelihoods.
• Reduced poverty levels.
• Less conflict and competition.
• More awareness of peers and public benefactors.
• Provides a low-cost, labour-intensive

approach to AWT.
Municipalities need to be mindful of potential weaknesses and threats from integrating the IWS and
safeguard that these harmful aspects do not outweigh potential benefits.

Case Study 4 — City of Johannesburg
Metropolitan Municipality
Food for Waste and Separation at Source - Pikitup, the company responsible for the City of Johannesburg’s
SWM, is implementing Food for Waste and Separation at Source projects, both with a strong approach on
empowering the poor and marginalised.
Food for Waste is a SWM project aimed at reducing household waste collection backlogs, while creating
work opportunities to reduce poverty. Beneficiaries of the project collect recyclables and exchange them
for a daily food parcel. Food for Waste’s focus is on clearing illegal dumping sites in informal settlements
in the municipal area, while addressing food security issues and, ultimately, converting cleaned sites into
community food gardens where possible. The beneficiaries are drawn from the city’s Expanded Social
Package Register (database of indigent/vulnerable households in the municipal area).
Separation at Source is aimed at diverting recyclable waste away from landfills/dumpsites to save valuable
airspace, reduce transportation cost of waste, reduce littering and illegal dumping, contribute to the city’s
poverty alleviation efforts and promote active citizenship. The business model clearly distinguishes
between the extension of the separation of recyclable waste at source to middle- and high-income areas,
and low-income areas and informal settlements.
Informal waste reclaimers in lower-income areas receive capacitation through the establishment of
cooperatives/non-profit organisations, construction and allocation of satellite sorting/buyback facilities.
The cooperatives collect recyclable waste from households in the Separation at Source project areas,
and collect waste from designated areas. Pikitup supplies the buyback centres managed by cooperatives
with caged waste collection vehicles, as well as PPE. The collected recyclables are sorted into different
wastestreams at the buyback centre/cooperative facility, from where the waste processed (baled or pal-
letised) and sold directly to large recyclers.
Clean MRF in the City of Johannesburg following Separation at Source by households
(Source: www.pikitup.co.za)

Chapter No. 4
INCLUSION OF THE FORMAL
WASTE SECTOR
4 Inclusion of the IWS
4.1 Mobilise the IWS
Section four offers numerous suggestions to assist with including the IWS in an AISWM system. The first
step is to mobilise the IWS.
The best functioning SWM systems across the world involve multiple stakeholders in the planning,
implementation and operations of projects or interventions.
When integrating the IWS into an AISWM system, members of the informal sector are key stakeholders
and should have a voice in determining their own future. A participatory approach requires consultations
during planning, implementation and operations phases. The goal and subsequent method of communication
with the IWS will differ during these phases:
◘ Planning and implementation phase: Information required to make decisions. The goal is to
gain knowledge of the local context, which will entail more detailed enumeration of the
demographics, livelihoods, and the current and future needs and desires of the IWS.
◘ Operations phase: Information required to monitor and adapt decisions. The goal is to continuously
monitor progress in integration and to understand the successes, challenges, opportunities and
potential threats.
4.1.1 Planning and implementation phase - mobilisation
The principles of SWM systems across the world are similar, but every SWM system is unique. Even
though it is not necessary to reinvent the wheel when choosing an integration approach and method, it is
important to understand the local context and circumstances, and adapt accordingly. Potential methods
of consultation with members of the IWS (and other stakeholders) in the SWM system include general
assemblies, focus groups and one-on-one meetings and enumeration.
General assemblies Focus groups One-on-one meetings

and enumeration
General assemblies allow for Carefully chosen representa-
an unlimited number of informal tives of the different groups One-on-one meetings are
recyclers to come together, of informal reclaimers come conducted when highly detailed
be briefed and share broad in- together for detailed discus- information is required. This
formation on a topic. General sions about a topic. These involves interviewing either a
assemblies are often followed meetings help with understan- sampled number of informal re-
by more detailed inquiries with ding qualitative issues based claimers or a whole population
smaller groups of individuals. on the different perspec- of informal reclaimers. Municipal-
The idea is to obtain general tives of the informal reclaim- ities may find it useful to develop
information that will help with a ers. Focus groups help with a database of reclaimers.
more detailed investigation later. creating an in-depth under-
standing of the status quo
as perceived by the IWS.

Figure 7 emphasises the importance of seeing informal waste reclaimers as the “expert” in the
integration process.
Figure 7. Speak to the expert

(Source: Adapted from Reinhold undated GIZ) 2011: 29)
4.1.2 Operations phase - continued consultation
Consultation with the IWS is not a once-off activity conducted during the data-gathering phases. The
long-term sustainability and efficiency of integration depends on continuous consultation with all key
stakeholders and the IWS.
A typical method of communication in this instance would be representative councils and forums.
Representative councils and forums
Representative councils and forums are usually long-term bodies elected to represent all stakeholders.
The goal is to continuously discuss issues and challenges and to keep track of progress, changes and
opportunities. These councils are a type of “support-group” for members in a specific sector, which
facilitate communication among members.

Establishing collaboration with the informal sector could be challenging. It creates a dilemma since
cooperation may be interpreted as accepting the actions of the informal sector that contravene existing
rules and regulations while, on the other hand, it is an important aspect of a democratic governance
approach. It is also a challenge to determine exactly who are legitimate representatives of the many
diverse members of the IWS.
Challenges in collaborating with the IWS
◘ Managing the expectations of the IWS.

◘ The IWS may resist any change.
◘ The IWS might have been consulted many times and not interested in participating.
◘ Representatives of the IWS might provide misleading perceptions.
◘ The IWS might be controlled by certain power structures that do not “allow” members to participate.
◘ The IWS might be wary of working with political leaders and members of another social class.
Despite the challenges, collaboration with the IWS can bring about significant advantages and ensure
better decision-making.
4.2 Coordinate the activities of the public, the IWS and

the formal recycling sector
The SWM system should be streamlined and the activities of the different roleplayers coordinated to
ensure mutually beneficial relationships that are sustainable and efficient.
4.2.1 Coordinate recycling activities of the general public with the informal and formal
recycling sectors
The recycling activities of the public should support the activities of the IWS and the formal recycling
sector. This would typically involve the separation of recyclables at source, which retains the value of
recyclables and, thus, benefits both the formal sector and the IWS.
4.2.2 Coordinate activities of the IWS with activities of the formal recycling sector
It is important to create links between the IWS and the formal recycling sector. Once opportunities have
been identified to organise informal waste reclaimers along the solid waste value chain, a structural
relationship should be created between the opportunities and the formal waste sector — before
implementation. The output of the IWS should be absorbed somewhere along the value chain to be
processed where necessary and to re-enter the economy. For example, links should be created between:
◘ Valorisation opportunities and drop-off, buyback and sorting facilities.

◘ Drop-off, buyback, sorting facilities and AWT processing facilities.

Identifying markets and securing agreements with drop-off, buyback and sorting facilities are crucial, as
are meeting buyer specification by finding an outlet for the recyclable materials.
Most IWS reclaimers interact with buyers of recyclable material (buyback centres). By focusing on buyback
centres, an opportunity will be created to interact with the IWS where it matters most (price for the goods).
Case Study 5 — Ekurhuleni Metropolitan Municipality

Promoting job creation through community-based waste collection and recycling
Prior to the implementation of the Vukuzenzele and Nkoza drop-off and sorting cooperative pilot project,
the Ekurhuleni Metropolitan Municipality (EMM) did not engage informal waste reclaimers in any recycling
activities. Recycling was driven on a small scale by private companies and the IWS. Informal waste
reclaimers operated on landfill sites/dumpsites and picked waste from kerbside and commercial bins. The pilot
project aimed at developing an ISWM strategy for community-based recycling to foster job opportunities for dis-
advantaged groups in Wadeville and Actonville, two bordering lower-income neighbourhoods in Benoni, through:
◘ Development of an operative plan to integrate recycling as a service assigned to

co-operatives at no cost to EMM.
◘ Selection and training of community-based cooperatives.
◘ Building a drop-off centre for waste recycling, entrusted to cooperative with service-level
agreements.
◘ Awareness raising in target communities.
This waste collection and recycling project is one of several pilot projects driven by Netsafrica
(www.netsafrica.org), a networking agreement between Italian and South African local au-
thorities aiming to improve community participation in initiatives to reduce poverty and provide
access to basic services. The pilot project is expected to be duplicated across the metro juris-
diction. Since the implementation of the project, a shift in the development of micro-enterprises
has been observed in the municipality due to a pro-poor approach in solid waste management.
EMM provided a property for the Vukuzenzele and Nkoza drop-off and sorting cooperative and the
programme provided infrastructure (facilities, buildings, machinery and bicycles). Recyclables are
collected in nearby neighbourhoods by members equipped with specially adapted bicycles. Households
are provided with reusable recycling bags to be filled for pick up once a week. The cooperative, which has
received several awards, has recorded the following integration achievements:
◘ Establishment of a training unit in the EMM.

◘ Assistance, training and ongoing mentoring.
◘ Incorporating advice from Italian local authorities with past experience in solid waste management.
Vukuzenzele and Nkoza Drop-off and Sorting Cooperative in Ekurhuleni Metropolitan Municipality
Source: Kayamandi 2014 site visit interview with cooperative members and Netsafrica 2012: 9 and 46-51

4.2.3 Appointing a liaison officer
The SWM system functions as a whole and changes in one component of the sector may severely affect
other stakeholders.
To ensure efficient and sustainable functioning of the AISWM system, the municipality can appoint a
liaison officer to coordinate and streamline the activities of the formal and informal sectors and be the
interface between the sectors and the municipality. The text box below details the job description of the
liaison officer.
Job description for Liaison Officer:

◘ Implementing the IWS integration initiative.
◘ Identifying potential stakeholders and beneficiaries.
◘ Identifying productive synergies between the formal and informal recycling sectors.
◘ Liaising and communicating with the stakeholders to build trust.
◘ Facilitating agreements (where possible).
◘ Being the interface between the municipality and service providers, capturing experiences and
feeding back into municipal planning and decision-making.
◘ Providing support to SMME start-ups.
◘ Providing support on technical and logistical issues, including business planning.
◘ Identifying and facilitating sources of funds to support initiatives.
◘ Tracking progress, capturing data and reporting.
Communication will be streamlined if the liaison officer communicates with representatives from the
formal sector, informal sector and the public. Figure 8 illustrates the role.
Activities of
the IWS
Liaison
Officer
Activities of Recycling
the Formal Activities of
Recycling the General
Sector Public
Figure 8. Role of the Liaison Officer

4.2.4 Facilitate a recycling forum
A recycling forum provides opportunity for discussions and debates. Forum stakeholders could include:
◘ Informal waste reclaimers.

◘ Buyback centres and recyclables traders.
◘ Processing and treatment centres.
◘ Municipal SWM representatives (e.g. liaison officer).
◘ Formal recycling companies.
◘ Local industries and businesses.
◘ Other civil organisations.
In the box below an example of a recycling forum in Brazil is discussed
Municipal Waste and Citizenship Forum:

A platform for social inclusion in participation - Brazil
In 1998, under the leadership of the United Nations Children’s Fund (UNICEF), the National Waste
and Citizenship Forum (FNLC) was launched in Brazil with the following objectives: Eradication of
child and adolescent labour in open dumps, elimination of open dumps, reclamation of degraded
areas and implementation of landfills. The FNLC also promoted partnerships between local governments
and organisations of (informal) recyclers in recycling programmes.
The size of Brazil and its regional peculiarities led to the creation of national, state and city forums
on which different governmental and non-governmental organisations could coordinate their actions.
The FNLC, at its peak, brought together 56 institutions. In 2003, a federal interministerial committee
for social inclusion of waste reclaimers (CIISC in Portuguese) was created. This committee comprised
representatives of several ministries (e.g. social development, employment, science and
technology, environment). CIISC holds regular meetings with representatives of the National
Movement of Recyclers. Soon after the creation of CIISC, the FNLC became less active and even-
tually ceased to exist. However, there are still some forums on solid waste and citizen participation
in many states and cities throughout the country. Some participatory bodies on solid waste manage-
ment issues have adopted principles formulated by the FNLC, albeit with other abbreviations, such
as the Conselhos Municipais de Desenvolvimento Ambiental de Minas Gerais (CODEMAS).
Important gains can be attributed to social mobilisation initiated by the FNLC, among them the
creation of a national law legitimising the activities of recyclers as service providers of recovering
recyclable materials, support for the process of organisation of recyclers, and the development of
public policies for inclusion of cooperatives in formal solid waste management systems. Many of the
achievements related to the integration of waste reclaimers in the formal management of solid waste
over the past years in Brazil, as well as increased social activism of recyclers, have been attributed
to the existence of a new approach started by the waste and citizenship forums. This platform has
legitimised the claims of recyclers to guarantee access to recyclable as a “right to the city”.
(Source: Directly from Cohen: 2013)

The goals of the forum could include:
◘ Disseminating and communicating knowledge and experience.

◘ Identifying opportunities to enhance recycling, building local markets and creating jobs.
◘ Networking among the different stakeholders.
◘ Encouraging the community to recycle.
The agenda could include slot discussions of how the management of solid waste can ensure the rights
of recyclers to gain a livelihood from gathering and processing recyclables as well as the improvements of
their working conditions5. To keep administrative and financial issues to the minimum, and retain openness
and flexibility, a recycling forum would not be constituted as a legal entity.
Municipalities could consider attracting some core financing from local businesses as part of their
corporate social responsibility programmes. These industries may support the IWS in numerous ways,
potentially including financial assistance to be used for infrastructure, equipment as well as skills training
and development.
The municipality could initiate the following actions to establish a municipal recycling forum:
◘ Undertake initial discussions with all the key stakeholder groups.

◘ Obtain agreement in principle from stakeholders for such a forum.
◘ Enlist one key stakeholder to spearhead and lead the forum.
◘ Agree on the objectives of the forum.
◘ Identify key projects to be addressed by the forum, such as skills development, integration
options/location.
◘ Provide support to face challenges as and when they arise.
4.3 Include the IWS in a stepwise manner
The type of integration intervention will depend on several

factors, but it should be undertaken in small increments Factors determining the type
(following a gradual, phased approach). Informal waste of integration intervention
reclaimers cannot be bombarded with a complex business or local opportunities
model or advanced processing plants without experience ◘ Available skills and knowledge.
and training. Furthermore, the IWS cannot merely register as ◘ Needs and preferences of the
individuals or organisations. A well thought-out strategy with IWS.
goals, and methods to achieve these goals, is required. ◘ Available resources.
At first, simple (to implement, execute and maintain), low-cost (both start-up and maintenance) and
low-tech (more easily managed by the recyclers themselves) approaches should be implemented aimed
at merely regulating and assisting the IWS. This includes recognition, light regulation, enhancing activity
and limiting exploitation. These approaches should go hand in hand with training and developing the skills
of the IWS to prepare it for more advanced integration.
5
Cohen 2013: 108

Once the initial integration efforts are successfully implemented, more advanced approaches can be considered,
such as forming legal entities and possibly using high-tech processes. If there is an intention to use
high-tech processes in the longer term, this needs to be transparently communicated upfront.
Informal waste reclaimers may initially be wary of joining in the initiative, due to the many reasons outlined
earlier. Reclaimers who may not want to join may have chosen a “wait-and-see” approach, to understand
what the risks and benefits are before committing themselves. Others may choose to withdraw from the
process, but should be encouraged to realise that they will continue, unsupported, with their individual
capacities.
Creating quick-wins through well-targeted and meaningful pilot projects will help to build trust and keep
as many members of the IWS as possible in the process.
4.4 Facilitate housing relocation assistance
In many instances, informal waste reclaimers live illegally in poor conditions on landfill sites and in
“makeshift” housing on the streets. Initiatives aimed at IWS integration should also consider the issue of
housing. Municipalities should engage with the Department of Human Settlements on the implementation
of the Emergency Housing Programme.
4.5 Low-cost, short-term integration approaches
Initial solutions for integrating the IWS in an AISWM system should be based on addressing the key
limitations prohibiting the IWS from integrating. Low-cost and low-tech approaches can be
targeted, such as:
Constraints on IWS
◘ Access to dedicated land/property where waste can be sorted. integration
◘ Sorting facilities for reclaimers to sort their recyclables under
controlled conditions. ◘ Little capacity.
◘ Equipment and infrastructure to add value, including handbailers, ◘ No equipment.
◘ Lack of funds.
storage lockers/containers where trollies and belongings can be ◘ No sorting facility.
locked up and collection bikes or trolleys adapted to carry half a ◘ Exploitation.
ton with shading. ◘ Lack of knowledge
◘ Reduced distance reclaimers have to drag their one-ton bags and skills.
or wheelie bins.
◘ Smartphone applications (apps) to share market price information.
◘ Communication mechanisms to call for forum meetings and general discussion platforms. These
should be coordinated by the liaison officer/s and communicated to IWS entities.
◘ Providing PPE (gloves, masks, etc.), reflective jackets and nametags.
◘ Training on maintaining the quality of recyclables and sorting the recyclables.
◘ Providing e-wallet systems so that recyclers do not have to carry cash.
◘ Providing durable bags or sacks for recyclables, which the IWS can pick up from door to door.
◘ Providing durable trolleys or other primary collection equipment for transporting recyclables
short distances.
Great inroads to limitations faced by the IWS can be achieved with affordable quick-win solutions.

Case Study 6 — Philippines - Linis Ganda Initiative
Linis Ganda, which means “clean and beautiful city”, is a non-government organisation (NGO) founded in
1983 and is currently active in all 17 cities that comprise the Manila Metropolitan region - one of the most
populated metropolitans in the world. The metro has a population of approximately 12 million people,
50 000 to 150 000 of whom are informal waste reclaimers.
Linis Ganda was initiated to improve waste collection, to enhance cleaning up of the metro, to recognise
the importance of waste reclaimers and to improve their working and living conditions. This was done by:
◘ Improving links between middle dealers and itinerant buyers.

◘ Organising recycling groups into cooperatives.
◘ Formalising scavenging and promoting recycling among schools and households.
◘ Promoting information campaigns that support recycling.
◘ Providing funding assistance for the informal sector.
The Linis Ganda operational model was designed with 17 junkshop cooperatives, one shop in each city.
These junkshops are the middle dealers that buy recyclables from eco-aides, who are registered informal
reclaimers collecting and buying waste from households with money given to them daily by the coopera-
tives. Linis Ganda then identifies local and foreign enterprises to which these recyclables can be sold. It
also provides loans and equipment to the cooperatives.
Strengths of the Linis Ganda model include:
◘ The ability to incorporate as many actors as possible in the recycling chain.

◘ Large contribution to economic output, employment and income.
◘ The provision of loans considering different equity options to cooperatives at short notice.
◘ Eco-aides being free to participate in junkshop training sessions.
◘ Facilitation between cooperatives and eco-aides, resulting in less exploitation and price manipulation.
◘ The ability to include the whole spectrum of recyclable materials.
(Source: IWPAR undated) The integration of the informal sector was chosen as a priority in the country’s
newly developed Solid Waste Management Strategy – especially the facilitation of recycling systems
4.6 Facilitate procurement and ease of business
4.6.1 Municipal actions threatening the IWS
To assist the successful integration of IWS into AISWM systems, municipalities should foster ease of
business for IWS activities. Current laws and regulations and other red-tape issues in some municipalities
are not pro-IWS:
◘ Many municipalities have bylaws regulating waste ownership. The collection of recyclables is
often subjected to municipal procurement processes and outsourced to established service providers.
◘ Linked to issues of procurement, supply-chain regulations do not support municipalities to
conduct business with the IWS, unless they are formally registered with a track record or
company profile.

4.6.2 Facilitate a conducive business environment
Municipalities should facilitate a favourable business environment for the IWS to either conduct business
with the municipalities as part of the AISWM system or to merely secure start-up business support.
The following interventions may support the activities of the IWS in the municipality:
◘ Identifying and locating all IWS members in the municipality and invite/compel registration.
◘ Developing a support system for a special new stream of business that may remain informal, but
operates under an agreement with the municipality, and hence needs to be monitored for certain
compliance aspects, such as health and safety.
◘ Updating bylaws to accommodate the organised IWS.
◘ Identifying and addressing regulatory constraints (i.e. red tape) that impede business relationships
with municipalities. Partnering with business forums or support organisations to identify and
prioritise constraints in the local business environment.
◘ Communicating business-related information and procurement processes and regulations.
◘ Limiting direct and indirect transaction costs associated with registration and compliance for
SMMEs involved in the recycling sector.
◘ Assisting with the establishment of formal businesses.
◘ Establishing a “buy local” campaign, which is a preferential public procurement strategy to
improve government supply chain procurement and, more importantly, to support economic
growth through incentivising local sourcing and content.
◘ Considering subsidising the recycling sector through deferred savings from landfill costs.
◘ Creating internship opportunities in the municipality’s SWM system.
◘ Linking the organised IWS that is awarded contracts/franchises with support organisations to
increase their likelihood of success.
◘ Providing advice and training courses.
◘ Establishing links with end of pipe recyclers to secure/guarantee the IWS better prices and
avoid/minimise middleman exploitation.
By facilitating a conducive business environment, municipalities can actively support localised

manufacturing, procurement and consumption.
4.6.3 Building organisational capacity of the IWS
Organisational capacity refers to measures that support the development of organisations. The Brazilian
integration scenario (further elaborated on in Chapter 2, along with other models) is a demonstrative
model that has been adopted in countries across the world. There are six types of interventions that
support informal recyclers. The following are interventions used elsewhere that could be adapted for
South Africa:
◘ Policy: Formally recognise informal recyclers in the ISWM policies and plans of municipalities,
and encourage municipalities to consider IWS integration.
◘ Incentives: Fiscal and financial incentives geared to support recycling.
◘ Procurement: Design procurement policies and bidding clauses that fit the low organisational
and financial capacity of the IWS, and encourage bidders to demonstrate integrated IWS approaches.
◘ Level playing field: Registered SMMEs would have free access to recyclables through

having their access rights protected by simple and legally enforceable contract/franchise
agreements.
◘ Communication: Communication channels, including representative forums for
stakeholders in the SWM sector – both formal and informal sectors.
◘ Capacity-building: Establishing capacity-building initiatives targeted at the IWS,
including business planning, legal support and health and safety training.
4.7 Training and skills development
Training and skills development are crucial for the integration of the IWS into an AISWM system. A
skills audit can be undertaken to identify gaps in the knowledge and skills of informal recyclers.
Some general fields of training that might be required include:
◘ Basic reading, writing and comprehension skills.

◘ Waste management collection and recycling value chain.
◘ Understanding the AISWM system and the opportunities it presents.
◘ Health, safety and environmental standards.
◘ Understanding business models and commercial law and contracts.
◘ Aspects relating to competition in the waste recycling industry.
◘ Business and financial management.
◘ Municipal procurement processes and regulations.
◘ Legal requirements and formalisation procedures.
◘ Access to credit.
◘ Networking with stakeholders from the formal sector.
Actions required for education and training, include:
◘ Skills base assessment

• Vocational skills: Core skills required for recycling services.
• Business skills: Non-core skills enabling an SMME to conduct its core activity.
◘ Identify skills gaps.
◘ Map out sources of education and training, and costs involved.
◘ Identify positions per operational area.
The type and level of skills development will depend on the type of intervention (light regulation or formal
entities).
4.8 Developing outlets for reclaimed materials
Identifying markets, securing agreements with material brokers and end-users and meeting buyer
specifications are some of the most difficult, yet important, tasks. Finding an outlet for recyclable
materials collected is crucial to support integration of the IWS. Market analysis needs to be both a
planning and ongoing activity as even the most successful recycling programs can be severely affected
by market fluctuations.
Outlets for recyclable materials include:

◘ Public drop-off sites.
◘ Recycling kiosks or buyback centres.
◘ MRFs.
◘ Processing companies for recycling materials in the longer term.
Many collection/sorting initiatives are not viable on their own and need to integrate/link with related up/
downstream revenue-generating opportunities, and/or rely on subsidies/incentives. At industry level, this
calls for local market development for the uptake of recyclables. The drive should be to meet manufactur-
ers’ requirements for accepting recycled materials as inputs to production – for example, constant supply
needs to be guaranteed.
The IWS reclaimers sometimes transport their recyclables over long distances and their income opportunities
may be limited to the daily load they can manage. Decentralised or mobile manual sorting buyback centres
can provide opportunities for the IWS reclaimers to collect a second or multiple loads and enhance their
income. Members of the IWS may also chose to upscale their activities by setting up buyback centres of
their own.
The municipality can assist by:
◘ Linking ISWM planning with wider economic development planning, and recognising that the two
are interlinked.
◘ Establishing a central register of SMMEs that can be invited to participate in waste-related
service contracts.
◘ Encouraging strategic partnership agreements between assisted IWS members and existing
private sector organisations to encourage capacity building with partners for mutual benefit.
◘ Supporting entities to link members to regional networks focusing on specific activities, for
example collection and refurbishment of furniture/small implements to offer scaled-up services.
◘ Nurturing local community innovation and identifying opportunities for pro-poor recycling services.
◘ Constructing decentralised sorting buyback centres.
Case Study 7 — Rustenburg Local Municipality
1. Background on the AISWM system for Rustenburg Local Municipality
As part of the South African-German cooperation, the Rustenburg Local Municipality (RLM) is
currently exploring the feasibility of an AISWM system. A feasibility study was undertaken during
2008/09 to develop and evaluate various waste treatment options and identified the most
likely solution as a clean MRF with separation at source paired with a mechanical biological treatment
(MBT) facility with a biological drying process to produce refuse-derived fuel.
In 2013, the KfW Development Bank, through the DEA, extended financial support to RLM to improve
the efficiency of municipal SWM services through an AISWM system and to implement the MRF and MBT
in support of a broader AISWM system.
The assistance is centred on the construction of the new Waterval Sanitary Landfill to replace

the Townlands Landfill site and several communal landfills/dumpsites. The proposed advanced
waste treatment facilities will be located at the new landfill site. Currently, Rustenburg has a large
IWS with many households’ livelihoods dependent on the collection and selling of recyclables. Once the
Townlands Landfill site is decommissioned, members of the IWS will be left jobless. Therefore, the
project is also addressing the possible integration of the large IWS into the proposed AISWM system.
2. Informal waste reclaimers in RLM
Currently, waste picking by separation of recyclables takes place in the streets and settlements
of Rustenburg, at the current landfill site and at some smaller dumpsites. While some reclaimers
separate recyclables from municipal waste provided by households and businesses along the streets
for collection by the municipal waste trucks, the majority sort waste at the current landfill site. It
is estimated that between 1 000 and 1 200 reclaimers work permanently or temporarily at the landfill.
There are about 700 local residents (70% females and 30% males) and 500 immigrants (80% males
and 20% females) working on the landfill site, the majority of whom have worked there for five to 10 years.
Reclaimers work jointly based on their nationality.
Approximately 85% live next to the landfill in formal or informal settlements, while an estimated
15% live directly on the site.
The collected recyclables are sold either to traders who come directly to the landfill or to buyback
centres in the town. The activities of the reclaimers on the landfill and those recovering recyclables
from households and shops, indicate that there is a well-established market for various kinds of
recyclables in Rustenburg. This is true not only for common materials such as scrap metal, glass,
plastic and paper/cardboard, but for wood, food waste and specific items such as printer cartridges.
The informal reclaimers describe their working and living situation as quite difficult, characterised by
exposure to violence (within the IWS community) and:
◘ Security concerns (theft of collected material, personal goods and/or money).

◘ Challenges experienced with buyers (buyers do not pay well and refuse to buy from some
groups or people).
◘ Issues of gender (men push women away from the trucks or from good sources of recyclable
material).
◘ Issues of ethnicity (reclaimers from Zimbabwe and Mozambique feel discriminated against by
the other groups).
Despite these concerns, picking recyclables at the landfills forms the centre of their working
and private lives.
Once the new sanitary landfill site is operational and the existing landfill site is decommissioned, most
of the reclaimers will not only lose their livelihood but a select number of those who live on or next
to the site will also lose their homes. If some of the affected waste reclaimers transfer their activities
to areas where other waste reclaimers are currently active, there could be potential for conflict.

3. Informal sector integration options for RLM
The waste reclaimers may play an important role in any future waste management scenario, but to effectively
manage and control the extent of SWM services assigned, they will need to undergo a registration and
formalisation process.
The municipality has deliberated on a potential proposal for individual reclaimers to continue to work as
independent “entrepreneurs”. This may require the issuing of licences and authorisation to conduct their
activities. For example, certain areas of the town shall be allocated to them to collect recyclables.
While some waste reclaimers may continue to work individually, others will need to form some kind of
organisational structure, e.g. cooperatives, to render effective services. The legal status of each waste
picker is of concern. However, the municipality will consider the involvement only of South Africans and/
or those with a residence or work permit.
Options for involvement of waste reclaimers are outlined in the table below.
Table 5: Different levels and locations of integration opportunities
Location Description and level of potential job opportunities
Individual street collectors/cooperatives serving entire townships.

Recyclable transporters (truck recyclers).
Rustenburg Municipality
Buyback centres.
Processing companies for recycling material.
Rehabilitation contractors required to employ reclaimers temporarily.

Closed Townlands Landfill Site
Composting plant to be established.
RLM is considering the establishing an MRF/MBT at the new Waterval

MRF/MBT at the New Waterval Sanitary Landfill Site.
Sanitary Landfill Site Workers for the MRF may be recruited from the group of former landfill re-
claimers.
4. Implementation principles
The following guiding principles for the implementation of an operational plan have been identified:
◘ Start negotiations and discussions with the IWS early enough before initiating operations at the
Waterval landfill.
◘ Integrate the project with all other related projects.
◘ Constantly engage with informal reclaimers.
◘ Obtain good data to make solid decisions.
◘ Know what is being lost in terms of the current SWM system.
◘ Compensate in kind, especially where housing is lost.
◘ Offer multiple and meaningful choices.
The following initial actions are envisaged:

◘ Investigate waste reclaimers’ structures and situations.
◘ Consult the IWS and assist with registration and permits.
◘ Address housing and social issues.
◘ Assist IWS in forming cooperatives.

4.9 Possible long-term integration and formalisation models
Plans, initiatives and opportunities for improving the recovery of recyclables from waste, and plans to
boost involvement of the poor, need careful coordination and integration.
As mentioned, IWS integration initiatives should be guided by a liaison officer to allow for both bottom-up
and top-down approaches. Experience has shown that the modernisation and integration of ISWM
systems cannot be sustainable, fair and efficient if the IWS does not form part of this modernisation
process. This will enable the systematic restructuring of the recycling sector to initiate identification and
facilitation of recognition, integration, formalisation and job creation.
Formalised businesses (SMMEs) should be able to deliver in bulk to buyback centres and negotiate better
prices, or even deliver directly to recycling companies. The entities could also be involved in processing
reclaimed materials, adding value to the collected materials and securing better market prices.
The opportunities for integrating the IWS are detailed in Figure 9, as aligned to the process flow of waste
and recyclables. The figure presents the formal and informal steps in SWM, the key players and how the
processes interact across sectors. This view of solid waste and recycling systems provides a basis for
understanding a modernisation model where recognition and integration of the informal sector is
simply one more variation that leads to the optimal functioning of the whole system.
The individual steps and opportunities for IWS integration as shown in Figure 9 are further elaborated on
in Table 6.

Figure 9. Opportunities for integrating the IWS in an AISWM system

Typical integration models, from mere recognition to formalisation (which require registration), are captured in Table 6.
Table 6: Opportunities for integrating the IWS in an AISWM system
Number Opportunity Description
Individual informal Informal waste reclaimers not interested in organising or formalising

1 waste reclaimers can operate on their own as usual. Recyclables can be sold to traders
or directly to buyback companies.
Registered Informal recyclers wishing to be more organised can register as waste

individual informal reclaimers, but still work individually. Designated collection areas
2 waste reclaimers can be demarcated. Recyclables can be sold to traders or buyback
companies.
Informal waste Informal waste reclaimers can work collectively in formalised business
reclaimers in formal models, such as cooperatives. Formalised entities or registered individ-
3 business model uals can serve entire township areas that are not served by municipal
waste collection systems. Recyclable transporters (truck recyclers)
can also be established.
Formal waste collec- Entities based on formal business models can collect recyclables and
tion and sorting MRFs then sort them. A clean (mechanical and manual) or dirty MRF can
4
be established. Activities can include, separation, sorting, grading,
cleaning, baling, etc.
Traders Opportunities for individual or collective informal waste reclaimers
5 as traders between registered individual waste reclaimers, formal
business models and buyback companies.
Buyback companies Informal waste reclaimers can be assisted to establish buyback
or recycling kiosks centres. Formal entities can be supported to open up recycling kiosks
6 (small buyback centres) at public drop-off facilities or in designated
areas that can also specialise in buying recyclables.
Processing Involvement in recyclable processing companies, such as:

1. Composting.
2. Dismantling of electronic waste.
3. Recycling of waste tyres.
4. Refurbishment of furniture/bicycles/small equipment.
5. Repair of electrical devices (ovens, refrigerators, heaters, etc.)
7
6. Rubble crushing and crushing of colour-sorted glass.
7. Paper choppers, paper briquettes, egg and fruit trays from wastepaper.
8. Production of clean and sorted PET chips and PE/PP regranulate.
9. Extrusion of waste bags from recycled plastic.
10. Waste to energy.
11. Composting.
Rehabilitate Informal waste reclaimers can be subcontracted temporarily to assist

landfills and city with the mining of landfills, landfill rehabilitation, clearing and construc-
cleaning services tion related components. Municipalities may contract collective re-
8
claimers to assist with city cleansing, clear illegal dumping sites and
oversee cleanliness at communal drop-off facilities.

Table 7: Models of IWS integration
Model Description Advantages Disadvantages Registration
Recognition refers to any activity aimed at dig- Low cost intervention. Perceived municipal acceptance of informal
nifying informal recycling as a profession, even More control over waste re- waste-reclaiming activities.
though it remains informal in nature. Such claiming with limited status quo Such recognition might attract more informal
actions can include provision of identity cards alteration. waste reclaimers.
or nametags, reflective clothing, improved Address a large number of Does not address the “informality” of informal
collection equipment, and changing policy to waste reclaimers at the same reclaimers. No direct potential for advancing
1. Recognition
address job security, income security, working time. career.
conditions, social protection, etc.
Agreements can be made between municipali- No legal requirements or The IWS remains uncontrolled.
ties and informal waste reclaimers. Informal contracts – informal waste re- There is no contract forcing stakeholders to
waste reclaimers can be assigned to certain claimers remain self-employed. adhere to the agreements.
areas, townships and informal settlements to Municipal collection backlogs Working conditions of informal waste reclaim-
freely collect recyclables and sell them. Agree- might be improved as well as ers are not necessarily improved.
ments can be made between businesses, in- collection costs.
dustries and municipalities to give all recycla-
bles to informal waste reclaimers for selling.
Also, informal agreements can be made with
2. Informal agreements
large recycling companies to buy recyclables
from informal waste reclaimers at market-re-
lated prices.
Social impact bonds can be implemented, This intervention directly This might be an expensive exercise, as mu-
whereby the municipality remunerates informal addresses social issues such nicipalities need to pay reclaimers with funds
waste reclaimers for the money their activities as income and livelihoods. they might not have.
Recognising the Informal Waste Sector in Advanced Waste Treatment

save the municipality, including reduced waste Municipal waste and social Working conditions are not improved
collection costs and space saved at landfills. issues are addressed through
Other social agreements could include remu- one intervention.
50
neration in the form of food parcels, vouchers,
3. Social agreements
or social impact bonds
grants, etc.
51
An association is any group of people who The association has a constitu- An association is not a legal person/entity and,
have joined together under some agreement tion regulating member activi- thus, has limited capabilities.
or constitution or set of rules to carry out a ties and and representating The association itself cannot benefit from
common objective. Associations are groups members’ interests through formal government procurement contracts.
that represents the interests of members lobbying.
according to a defined constitution and are are
4. Associations
non-profit businesses.
A formal business or an SMME is an often-proit- Formal businesses or SMMEs Generally, more management and business
driven organisation structured according to are more organised and work experience is needed to establish a business
legal requirements. The type of business or conditions are regulated. or a SMME. Many reclaimers do not have
SMME will depend on the number of members Members have improved these skills or knowledge.
involved, the objectives of the members and income stability, job security The capitalistic nature of some businesses
the type of activity. and social protection. may not be applicable for reclaimers.
The business has potential
to expand its activities and
advance the careers of informal
5. Formal business models

waste reclaimers.
A partnership exists where two or more people An easy way in which people Partnerships are not suitable for large organi-
agree to work together, and share their profits can formally work together. sations.
and losses. It is, thus, the simplest way in which The IWS will have a more All partners are individually and severally re-
people can work together, in that it is not even sustainable income, while the sponsible for debt and responsibilities.
necessary to have a written agreement to con- capacity of the formal sector The formal sector is often reluctant to partner
stitute a partnership. In return, municipalities could increase. with the informal sector.
can assist these businesses to conduct their Less competition. Once a partnership is ended, the specific
activities by capacitation and/or training. Improved municipal service business may close down.
5.1 Partnerships
delivery.

A cooperative is an association that operates A cooperative is focused on A cooperative can become difficult to manage,
as a business or enterprise in accordance with the needs and capabilities of especially when it has a large number of
cooperative principles flowing from coopera- its members. members.
tion rather than competition among members. Members are directly responsi- Management and business skills are required.
Cooperative principles are set out and adopted ble for their earnings. Disagreements between members can easily
by the international cooperative movement: Cooperatives are easy to break up the cooperative.
Concern for community; cooperation among register and the capital contri-
cooperatives; education, training and informa- bution is flexible to the needs
tion; autonomy and independence; member of its members.
economic participation; democratic member Greater bargaining power than
control; voluntary and open membership. The an association.
Cooperatives Act, No 14 of 2005, provides One member has one vote re-
5.2 Cooperatives
for the registration of cooperatives that have gardless of capital contribution.
adopted a constitution that complies with Easier to gain funding and pro-
cooperative principles. Various forms exist: curement contracts with mu-
Worker cooperatives, services cooperatives, nicipalities.
primary and secondary cooperatives, etc.
A social enterprise is a non-profit or profit or- Work conditions and the dignity Reclaimers may not find this option attractive
ganisation whose aim is to improve the social of informal waste reclaimers as they will be only employees in the organisa-
conditions of their employees. Such organisa- are restored. tion and recipients of benefits.
tions often include NGOs aimed at providing Improved job security, income Legal requirements are difficult to manage.
services or products to a community to improve security and social protection. Social enterprises have to adhere to strict rules
the livelihoods of members or employees. and regulations. They will have less freedom.

Depending on the type of social enterprise,
registration as a formal business or an SMME
might be required.
5.3 Social enterprise
52
53
A company is an entity registered in terms A memorandum of association, Rights of members to transfer shares are re-
of the Companies Act, 2008 (Act No 71 of which is the company’s consti- stricted.
2008). The Act provides for various kinds tution, can easily be esta- Many legal requirements, which might be
of companies, including non-profit organi- blished to regulate activities. beyond the capability of reclaimers.
sations wishing to register as a company, Up to 50 shareholders. Decisions can be made by a majority share-
private companies, state-owned companies A company is a legal person holder, which might influence other sharehold-
and public companies (shares traded on the that can act on its own behalf ers negatively.
stock exchange). According to the Act, the separate from its shareholders.
purpose of a company is ‘for the aggregation Shareholders risk losing only
of capital for productive purposes, and for the their shares and no personal
5.4 Companies
investment of that capital in enterprises…’ A assets.
share gives a member the right to interest
in the company, assets and dividends. The
company is managed by a board of directors,
while shareholders make decisions (control) at
an annual general meeting.

All formal business models require business registration, with the exception of a partnership, since it
entails a formal agreement or relationship. Nonetheless, pro-poor Public Private Partnerships (PPP) can
be established between businesses, the public sector, and the IWS to clean-up and collect recyclables in
townships, informal settlements or poor communities.
4.10 Considerations for facilitating formalised business models
Past experience has shown that bottom-up, organically grown businesses are more likely to succeed
than top-down, artificially established businesses. Therefore, existing organisational structures should be
strengthened rather than new formalised business models created.
Care needs to be taken not to push informal waste reclaimers into an organisational (operator) model
without the business skills to survive. An entity/organisation model that is imposed on an informal group
is unlikely to succeed without support and training initially in organisational development.
Ultimately, a municipality’s intention should be to provide the tools and framework to facilitate the
sustainable transition of individuals and small groups of informal reclaimers out of the IWS into the formal
recycling/SWM sector.
4.10.1 Deciding on type of formal business model
Formal business models involve a lot of hard work and discipline, and often require more skilled members
managing the business. The type of business model chosen, such as partnerships, companies or coop-
eratives, should be determined through stakeholder consultation. The decision to organise the IWS into
formalised businesses should be based on a sound understanding of the dynamics and the following key
questions asked:
◘ Do proposed members understand the details and essentials of the proposed business?
◘ Is the proposed business profit driven or not?
◘ Are proposed members aware of the positive and negative aspects of forming a formal
business?
◘ Are the proposed members considering the business voluntarily or are they being forced?
◘ Are the proposed members aware that they will have to commit to the skills and expertise
of other members?
◘ Are proposed members aware of and do they agree with how remuneration will take place?
◘ Are there any entrepreneurial and management skills among the proposed members? What
capacity and skills are available?
◘ How many proposed members will be involved?
◘ Are there any additional costs and taxes involved?
◘ Are the proposed members aware of the greater responsibility involved in the business?
◘ Is there a market for the business to survive?

Case Study 8 — India – KKPKP and SWaCH
Kagad Kach Patra Kashtakari Panchayat (KKPKP) is a waste picker trade union established in 1993.
KKPKP has 6 000 to 8 000 registered current members, all from Pune and Pimpri. Since inception, the
union has assisted 11 000 reclaimers and has established the Solid Waste Collection and Handling Co-
operative (SWaCH) of 3 500 members, which has increased by 31% diversion rates in the two cities.
KKPKP provides the IWS in Pune and Pimpri, which consists of 70% uneducated women and children
(the poorest of the poor), with a voluntary trade union with the capacity to work towards providing informal
reclaimers with the same benefits enjoyed by workers in the formal sector. Although KKPKP is women-
centric, it is open to all waste reclaimers, regardless of race or religion.
SWaCH was established as a pilot project in 2006 and aims at improving the livelihoods of reclaimers and
to build better relationships among reclaimers, households and the municipality. It also supports continu-
ous training and education of members, especially women. Members operate in teams of two reclaimers
and one driver (motorcycle-like vehicles), who collect recyclables from households in designated areas
for sorting at recycling shelters provided by the municipality and sale to scrap shops, of which KKPKP
owns three.
Strengths of the KKPKP and SWaCH model include:
◘ Provision of a sense of community and restoration of dignity and respect of informal reclaimers.
◘ The results of research being incorporated and used as bargaining chips to argue for better work
and living conditions.
◘ Provision of educational and work opportunities for children of informal reclaimers in more
advanced stages of waste collection.
◘ Informal reclaimers being involved in the whole value chain – from reclaiming to transport,
sorting and selling.
◘ Driving waste picker trucks provide women with a sense of empowerment.
◘ Organised demonstrations to highlight the plight of the informal waste sector.
◘ Reduced child labour.
(Source: IWPAR undated)

4.10.2 Key success factors of a formalised business model
Preliminary planning is crucial to the success of formal businesses and should be conducted before the
business is established. There is usually a leader or a group of people initiating the establishment of a
formal business. Once the potential members of the business are identified, the objectives, principles and
plan for the business should be collectively discussed.
These operational guidelines are key to the success of the business and should include the following:
◘ Principles
◘ Objectives
◘ SWOT
◘ Plan
The text boxes elaborate further on the key elements.
Principles
Principles describe how the business will operate and are closely related to the objectives. The prin-
ciples guide the operations of the business and the behaviour of its members, including how they
conduct business, who may join the business, how members are treated, etc. The principles should
be democratic and drawn up collectively.
Objectives
A collective decision should be made on the objective of the formal business. To ensure commitment,
the objective should support the interests of all proposed members. The objective should clarify the
type of activity, with whom will business be done and profit/remuneration issues.
SWOT Plan
D eter mining t he st rengt hs, weak ne s se s, A plan or strategy should be developed detailing
opportunities and threats of the business assists the objectives, principles and operations of the
m ember s w it h p roac t ive de c isi o ns, put s business. The plan is not a legal requirement
precautionary measures in place and allows the but constitutes a central document to assist the
business to capitalise on advantages. business owners with making decisions and
solving potential issues. The plan is also useful
in marketing, and is essential in obtaining any
external financing. Apart from the principles, the
plans should be flexible.
4.10.3 Getting assistance to establish a formal business
Establishing a formal business is not easy and a third party could be appointed to assist. The municipality
has an essential role to play as promoter, facilitator and coordinator and this role must be clearly defined.

A decision is needed on whether the integration effort will be initiated:
◘ Internal/in-house by the municipality: By training and/or reallocating existing personnel.

◘ External: Through contracting a team of facilitators or experts, or an association or parastatal,
e.g. the South African National Association of Cooperatives (SANACO).
Expertise required for an IWS integration initiative can include:
◘ Coordination and administration.

◘ Local social specialist with cultural and informal livelihoods knowledge.
◘ Public participation expert with conflict-resolution experience.
◘ Waste management and/or recycling specialist.
◘ Small business development expert.
◘ Environmental education specialist.
◘ Health and safety specialist.
◘ Legal specialist.
◘ Accounting specialist.
◘ Awareness raising and communication expert.
4.10.4 Gaining business support
As a formal business, it is easier to obtain funding from the government, NGOs and other formal entities
as part of their corporate social responsibility. Funding is often a major constraint in start-up businesses
and directly influences the expansion and advancement of the business.
Business support can also be obtained through partnerships between informal recyclers and their support
organisations on the one hand, and brand owners, compliance schemes under extended producer
responsibility and product stewardship initiatives, on the other hand. In general, the goals of such
partnerships are to:
◘ Improve recycling and reuse performance, and meet global recycling targets for products
and packaging.
◘ Improve working conditions and health and safety provisions, ensure recognition for informal
recyclers, and stabilise their livelihoods as recycling entrepreneurs.
◘ Preserve or strengthen the positive impacts of informal reclamation and recycling.
◘ Improve resource efficiency and streamline marketing of secondary resources.

Case Study 9 — uMgungundlovu District Municipality (UMDM)
1. AISWM systems in uMgungundlovu
As part of the South African-German cooperation, uMgungundlovu District Municipality (UMDM)

and local municipalities (LMs) in the district collaborate closely to implement AWT projects.
Despite there being six landfill sites in the district, in Mooi River, Richmond, New England Road, Curry’s
Post, Impendle and uMshwathi, the district still has a relatively low refuse collection rate. Approximately
47% of the total solid waste is collected by the municipalities, 7% of which is recycled, with the remainder
landfilled. The uncollected solid waste is illegally dumped or burnt.
2. Informal waste reclaimers at UMDM
The district has about 1 000 active waste reclaimers, ranging from kerbside reclaimers to those at landfills
and illegal dumpsites, who sell their recyclables to buyback centres, private recycling companies and
traders.
Private recycling companies are also active. An estimated 70 000 tons of recyclables are generated
annually, with only 22 000 tons collected and recycled. Approximately 8 000 tons of these recyclables are
collected, recovered and sorted under the UMDM Small Recyclers Support Programme.
The programme supports formalisation of informal reclaimers by:
◘ Building unity and organising small recyclers into trading associations.

◘ Lobbying for policy change.
◘ Providing greater transparency in pricing among small recyclers and buyers.
3. UMDM Small Recyclers Support Programme model
The programme is based on the following model:
◘ Introduction of household, public and business source separation.

◘ Assistance to small-scale recyclers (typical waste reclaimers) to collect recyclables.
◘ Waste reclaimer cooperatives to separate and package waste for sale to end-users, which may
include former informal reclaimers.
◘ The local municipality supplies clear plastic bags for collection and separation of recyclables.
◘ Small recyclers supply waste picker cooperatives.
◘ Income from the sale of recyclables is paid to waste picker cooperatives.
◘ Local municipality will subsidise costs of electricity, water, fuel and maintenance for an MRF if and
when operational.

Founding principles for IWS integration could include:
Recognise the presence of the IWS and its role as the base of the
recycling value chain as these informal recyclers are responsible for
Recognition
most of the materials that are captured, processed and sold into the
value chain.
The IWS has the practical experience and knowledge to maximise

Competence recycling under local (market) conditions, and to adapt quickly to new
value chains and market opportunities
Treat informal sector recyclers as subjects, not objects, of interven-

tions. They have opinions, expertise and experience. Acknowledge
Participation them as key stakeholders in the design, monitoring and evaluation
of recycling and valorisation systems, and the definition of quality
standards. Always keep in mind “nothing about us without us”.
Assume source separation is feasible, if well designed. Build on, or

Source separation introduce, upstream separation of recyclables, organics and residuals
at households or businesses.
Build on existing recycling systems, rather than assuming that every-

thing has to be built from scratch, or replace existing informal systems
Find what is working
with parallel formal ones. Work with informal recyclers to collect data
on both waste generation and recycling rates.
Bring insights and ambitions of informal recyclers together with global

ideas of sound practice to achieve practical, feasible and context-
Safe and dignified
sensitive improvements in environmental, health and safety working
working conditions
conditions of informal recyclers. Promote dignified working conditions
along with improvements in productivity and earnings.
Work with informal recyclers who are parents, and with their children,
to ensure that children go to school, and that recycling activities by
Eliminating child labour
children under the legal age of adulthood in the country are con-
strained, supervised, reduced or eliminated.
Prioritise and intervene to improve marketability of difficult materials,
Improving recyclability to strengthen local markets, and where existing recycling processes
are dangerous, polluting or illegal.
Involve informal and SMME recycling enterprises as competent

business partners; give priority to business-to-business initiatives over
Business-to-business
PPPs that involve the government other than as a host community.
before private public
A formal business is more likely to receive procurement contracts
partnership (PPP)
from municipalities, given that current procurement and supply-chain
processes are not designed to deal with the informal sector.
Transfer experiences Disseminate and transfer sound practices of partnership with informal
and good practices recyclers.

4.11 Monitoring and evaluation rollout of pilot integration model
The monitoring and evaluation of the integration model are crucial to inform the implementers of progress,
challenges, successes and potential changes needed. Feedback should then be given to all stakeholders,
while lessons learnt should be considered for future rollout.
4.11.1 Monitoring during pilot project integration
Pilot project design can usefully include:
◘ A set of clear, relevant and easily measurable indicators.

◘ Procedures for measuring indicators.
◘ The types of data to be collected and methodology to be employed.
◘ A strategy for follow-up and recording of progress, results and problems.
◘ Institutional roles and responsibilities.
◘ Implementation timetable.
◘ Reporting arrangements.
◘ Procedures and timeline for sharing results with key stakeholders.
◘ Budget.
Internal monitoring procedures should be in place to allow implementers to compare the actual progress
of the intervention to the targets, milestones and timetables in the implementation plan.
Case Study 10 — Wildlands Wastepreneurs programme
The National Green Fund approved R60 547 930 to support the three-year Wildlands Wastepreneurs programme,
which facilitates and funds community waste collection in KwaZulu-Natal and Gauteng (encroaching into Mpumalanga). It
also provides capacity development for participants on best practice methods of collection and sorting various
environment-polluting waste streams.
The programme builds on a pilot undertaken in 2010 in the Msunduzi Local Municipality, which demonstrated that
unemployed community members could be motivated to collect a range of recycling materials in exchange for credit
notes or barter items such as bicycles, building materials and other livelihood support items of their choice. The
model has since been further developed and now issues credit notes or cash (deposited into bank accounts), which
can be used at selected stores.
The Wildlands Wasterpreneurs project, developed by the Wildlands Conservation Trust (WCT), is managed by
regional managers and facilitators who work closely with drivers, loaders and waste sorters. The programme
targets were the avoidance of 20,500 tCO2e emissions and collection of 13 200 000 kg of recyclable waste over four
years. The programme has exceeded its targets, avoiding 19 256 tCO2e emissions to date and recycling
26 263 907 kg between January 2014 and July 2016. Furthermore, the programme has empowered 7 815 waste-
preneurs, 17 full-time drivers, and 104 permanently employed individuals agaist targets of 4 400 wastepreneurs, 14
full-time drivers and 93 individuals and against a target of 38 loaders/sorters, 154 have been appointed. The project
is popular in the communities, with 92 schools participating in waste separation at source and further recycling.

It is also contributing to alleviating the pressure on service delivery from municipalities for waste collection in unser-
viced areas, while creating employment opportunities for local communities.
National Green Fund funding has been used to leverage other corporate funding, which has boosted the sustainability
of the programme, allowing it to continue to grow the network of wastepreneurs and undertake waste sorting and
recycling activities, while providing relevant training to project staff and beneficiaries.
(Source: Department of Environmental Affairs, 2015)

Pictures courtesy of Wildlands Conservation Trust
4.11.2 Integration impact evaluation
Following the implementation of the chosen pilot intervention, a focused socioeconomic impact
assessment (SEIA) should be conducted to evaluate the impact on the IWS, the economy and
other stakeholders. Identified impacts, both positive and negative, should be assessed in terms of nature,
extent, duration, intensity, frequency and probability of occurrence. The SEIA should include:
◘ Impact on households: Long-term savings on refuse removal costs, educational value and
increased awareness of reuse and recycling/reduction of waste.
◘ Impact on integrated (former) informal waste reclaimers: Sustainable employment, skills transfer,
income levels, women and youth development initiatives, business growth and entrepreneurship,
new business development and food security.
◘ Impacts on informal waste reclaimers not integrated: Income, livelihoods and quantity of
recyclables collected.
◘ Impact on formal recycling companies: Change in profits and employment.
◘ Impact on community and environment: Health, clean environment and awareness/educational
value.
◘ Impact on other important stakeholders.
Lack of appropriate post-implementation support is a key reason why many entities struggle on
survivalist margins due to no or limited access to services, support, finance, credit, suppliers, markets,
skills and information. Most entities require multidimensional support, the nature and degree of which will
vary. However, it is advised that continuous improvement after initial integration be fostered, which may
include:
◘ Troubleshooting and problem solving.

◘ Follow-up and reporting on progress.
◘ Development of key performance indicators to measure successes and failures, to be monitored
regularly, with intermittent debriefing.

◘ Provision of ongoing advice and technical support to ensure sustainable outcomes.
◘ Development of an exit support strategy to gradually reduce the intensity of support, while
fostering sustainability.
Post-implementation support to assist with efficiency, productivity and profitability could entail, inter alia:
◘ Expanding the client base and extending existing activities by helping to find new buyers and
negotiating agreements.
◘ Raising productivity through improved organisation, division of labour, etc.
◘ Increasing economies of scale by assisting to organise individual activities into collective
arrangements.
◘ Diversifying business lines such as composting.
◘ Bypassing intermediaries by promoting collective selling, negotiating agreements with buyers
and sellers, providing storage spaces, taking actions to defend rights, etc.
◘ Using technology, such as adapted trolleys, purpose designed collection bags and community
storage spaces.
◘ Enhancing transport economics for reclaimers.
Care needs to be taken to not create dependency relations between the previous informal waste reclaimers
and the liaison officer, as the reclaimers in the newly formalised structure may not develop autonomy and
capacity for independence.

Chapter No. 5
CONCLUDING
REMARKS
5 Concluding remarks
The NWMS promotes waste management practices up the hierarchy, setting recycling targets to drive
the process. South African waste management practices are being adapted to a new, more sustainable
paradigm, where dependency on landfilling is reduced, and energy generation, recycling, composting,
reuse and reduction are encouraged.
Parallel to this process, there is a need for significant funds for continued modernisation of waste man-
agement infrastructure and services across the country. Part of the challenge is working with the IWS in
a “fair deal” where materials are directed away from landfills, while preserving livelihood opportunities,
improving health and safety conditions and ensuring dignity of work.
The need for integration of the IWS with mainstream waste management systems is being increasingly
recognised, as the IWS plays a significant role in diverting materials away from landfill, contributing to
recycling targets, providing livelihood opportunities for poorer communities, and feeding the downstream
manufacturing industry with high-quality source-separated material. All this happens at no financial cost
to society. On the contrary, the IWS saves South African municipalities (and, therefore, citizens) money
that would otherwise have to be spent on collecting, transporting and disposing recyclable materials.
The IWS, however, operates in an unregulated world where personal injury, poor health, violence and
profiteering are commonplace. The commercial relationships for materials trading through the value chain
can be sophisticated, and what can seem to be an unorganised low-value business can actually have
surprisingly high levels of organisation and differentiation, akin to an industry.
More than 150 000 reclaimers are estimated to be active in the South African IWS6 , working within and
parallel to the formal waste management system. This is a significant workforce, and one that until now
has not been officially recognised in national statistics. Very little research has been carried out on the
IWS, and data on the quantities of materials extracted and valorised by this sector are completely lacking.
It is anticipated that there will be some resistance to formalisation from the IWS. Therefore, trust needs
to be built from the bottom up, which will take significant time and effort. However, there seems to be no
pragmatic alternative. After all, without recognising and understanding the IWS, how can we be sure that
new AWT facilities will actually receive the expected feedstock materials?
They may resist while the political pressure is on, but over time the market prevails, and materials will tend
to flow in the direction of most benefit to the front-line collectors and reclaimers, and the traders working
through the recycling value chain. In conclusion, working with the IWS is an essential part of good project
planning and implementation.
6
The global benchmark estimate for low- and middle-income countries (UN Habitat 2010: 1) is that 1% of the urban
population in developing countries survives by reclaiming recycled material from waste. The IWS in South Africa
is conservatively estimated at 150 000 people (approximately 0.4% of the total urban population, or 6% of the total
informal sector).

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Netsafrica. 2012. Guidebook – Learning from Practice: Experience of Netsafrica Programme to Enhance
Local Development in South Africa.
Statistics South Africa. 2014. Quarterly Labour Force Survey – third Quarter.
Thompson-Smeddle, L. Undated. Solid Waste Management in South Africa.
UMDM. 2013. The Story of Recycling within uMgungundlovu.
UMDM. 2014. Advanced Solid Waste Management uMgungundlovu: Monthly Progress Report 1.
UMDM. 2014. Advanced Solid Waste Management uMgungundlovu: Workshop Report.
UN Habitat. 2010. Solid Waste Management in the World’s Cities.
Vest, H. 2014. Assisting Informal Sector Activities within the Rustenburg Local Municipality AISWM
System: With a Particular Focus on the Reclaimers of the Townlands Landfill Site.
WIEGO. 2009. Refusing to be Cast Aside: Waste Reclaimers Organising Around the World.
WIEGO. 2010. Options for Organising Waste Reclaimers in South Africa.

Website
www.joburg.org.za
www.pikitup.co.za
www.iwpar.org - Informal Waste Pickers and Recyclers
www.wiego.org - Women in Informal Employment Globalising and Organising
Useful publications
CSIR.2011. Municipal Waste Management: Good Practices.
GIZ 2011. The Economics of the Informal Sector in Solid Waste Management,
GIZ. 2012. Recovering Resources, Creating Opportunities: Integrating the Informal Sector into Solid-
Waste Management.
Netsafrica. 2012. Guidebook – Learning from Practice: Experience of Netsafrica Programme to Enhance
Local Development in South Africa.
UN Habitat. 2010. Solid Waste Management in the World’s Cities.
WIEGO. 2010. Options for Organising Waste Reclaimers in South Africa.

Annexure 1 Where to go for assistance and support?
A municipality cannot realistically integrate the IWS on its own. This annex lists several business support
organisations, sector support partners and useful publications that can help municipalities to further
unpack the process of engagement with other stakeholders and methods of securing buy-in from various
umbrella organisations.
1. Business support organisations
Relevant business support organisations in South Africa include:
◘ Cooperative and Policy Alternative Centre (COPAC) – An NGO providing training and advice on
establishing cooperatives.
◘ DGRV South Africa – a project of the German cooperative federation, the DGRV, provides
training and advice on managing cooperatives.
◘ Funda Education and Training Cooperative – education and training for cooperatives.
◘ groundWork – an NGO working specifically with recycling and SWM.
◘ Small Enterprise Development Agency (SEDA) – agency of the Department of Trade and
Industry (dti). SEDA develops, supports and promotes small enterprises throughout South
Africa, ensuring their growth and sustainability in collaboration with various roleplayers,
including global partners to avail international best practices to local entrepreneurs.
◘ Tembeka Social Investment Company – assistance to various initiatives to empower people from
poor communities.
2. Sector support partners
Municipalities have infrastructure backlogs and may not have the sufficient time or funds to pursue an
IWS integration initiative. There are various NGOs or donor support organisations that may be able to
provide support. Other than local NGOs and donors, some other supporters include:
◘ African Centre for Migration and Society.

◘ Alive2Green.
◘ Collection and Transport Interest Group.
◘ Institute of Waste Management of Southern Africa.
◘ National Recycling Forum.
◘ Socio-Economic Rights Institute of South Africa.
◘ South African Waste Information Centre.
◘ South African Waste Reclaimers Association.
◘ Waste Management Bureau.
◘ Waste Management Section of Women in Informal Employment, Globalising and Organising
(WIEGO).

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Table of Contents

1.2 Relationship between knowledge products in this series 4

1.4 Perspectives on involving the informal waste sector 6

2 The informal waste sector in South Africa 10

2.2 Background on the informal waste sector in South Africa 12

2.3 Overview of the South African solid waste management sector 16

2.5 Formal vs. informal differences 21

3 Approaches to and benefits of integrating the IWS in AISWM systems 25

3.2 Benefits of including the IWS in AISWM systems 29

Recognising the Informal Waste Sector in Advanced Waste Treatment i

4.1.1 Planning and implementation phase - mobilisation 33

4.2.2 Coordinate activities of the IWS with activities of the formal

4.2.3 Appointing a liaison officer 37

4.3 Include the IWS in a stepwise manner 39

4.6.1 Municipal actions threatening the IWS 41

4.6.3 Building organisational capacity of the IWS 42

4.9 Possible long-term integration and formalisation models 47

4.10 Considerations for facilitating formalised business models 54

4.10.1 Deciding on type of formal business model 54

4.10.2 Key success factors of a formalised business model 56

4.10.3 Getting assistance to establish a formal business 56

4.11 Monitoring and evaluation rollout of pilot integration model 60

4.11.2 Integration impact evaluation 61

Annexure 1 Where to go for assistance and support? 67

ii Recognising the Informal Waste Sector in Advanced Waste Treatment

Table 1 Misconceptions of informal waste reclaimers 14

Table 2 Differing perspectives of socio-economic realities of the IWS 19

Table 3 Formal versus informal waste sector differences 22

Table 4 SWOT analysis of integrating the IWS 30

Table 5 Different levels and locations of intgration opportunities 46

Table 6 Opportunities for integrating the IWS in an AISWM system 49

Table 7 Models of IWS integration 50

Figure 1 Relationship between knowledge products in this series 5

Figure 2 One-dimensional versus multi-dimensional approach to municipal solid

waste management (SWM) 6

Figure 3 SWM process flow in a typical South African municipality 16

Figure 4 Municipal solid waste collection by Pikitup in the City of Johannesburg 17

Figure 5 Informal waste reclaimers in the City of Johannesburg 18

Figure 6 Existing vs. improved working conditions at a material recovery cooperative 28

Figure 7 Speak to the expert 34

Figure 8 Role of the liaison officer 37

Figure 9 Opportunities for integrating the IWS in an AISWM system 48

List of Case Studies

Case Study 2 Costa Rica – Strategic Action Informal Sector Intergration 21

Case Study 4 City of Johannesburg Metropolitan Municipality 31

Case Study 9 uMgungundlovu District Municipality (UMDM) 58

Case Study 10 Wildlands Wastepreneurs programme 60

Recognising the Informal Waste Sector in Advanced Waste Treatment iii

◘ Dr Heino Vest: Infrastruktur und Umwelt - Professor Böhm und Partner.

◘ Gernod Dilewski and team, Infrastruktur und Umwelt.

◘ Shenaz Moola, Project Manager: Mott MacDonald PDNA.

◘ Torben Kristiansen and team, COWl.

◘ Riaz Jogiat, Technical Manager: uMgungundlovu District Municipality.

◘ Roelf De Beer, Marketing Manager: Pikitup.

◘ Richard Rajah, Manager: Waste Management, Msunduzi Local Municipality.

Affairs, for review.

Department of Environmental Affairs, for review.

◘ Brian Chapole, Department of Environmental Affairs, layout and design elements

We apologise if we have excluded an individual or organisation.