Social Enterprises Aimed at Waste Reduction and Waste Management in South African Communities

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

Literature Review

October 2020

Social enterprises aimed at waste reduction and waste management in South African communities

IN SUM This study examines the available literature to indicate the role of social enterprises in South Africa in bringing about a transition to a circular economy which minimises waste and maximises resource use. Firstly, it describes South Africa’s current waste ecosystem and potential gaps between policy and practice. Thereafter, it outlines the social enterprises involved in recycling and organic waste reduction which have emerged to fill these gaps, in conjunction with their social upliftment goals. Finally, it considers the lessons South Africa can learn from social enterprises involved in waste reduction in other parts of the world. The literature reviewed in these sections indicates that social enterprises, if coordinated with other actors involved in the waste sector, have enormous potential to transform our conceptualisation and management of waste.

INTRODUCTION In a world facing unprecedented environmental degradation and resource depletion, a shift in the conceptualisation and management of waste is in dire need. The circular economy model, where waste is continually reinvented as a secondary input in a closed-loop system, provides an alternative and sustainable mode of production (Geissdoerfer et al, 2019: 762). While South Africa has made a commendable attempt to transition toward a circular economy, the gap between policy and practice is especially evident in the country’s waste ecosystem (Schenk et al, 2019: 80).

Increasing waste generation from a growing population coupled with resource constraints faced by municipalities means that local government in isolation is not capable of bringing about a largescale shift to a zero waste economy (Linnay, 2013: 27). It is in this context that social enterprises may form an alternative to conventional waste management solutions, using community-based, “bottom up” approaches to reduce the amount of waste making its way into overcrowded landfills.

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

This study makes use of available literature to explore what social enterprises in South Africa involved in waste management and reduction currently exist, as well as the lessons that South Africa can learn from social enterprises operating in other countries. It outlines the aims, innovations, successes, challenges and partnerships of South African social enterprises as well as their ability to sustain themselves through their own activities. Overall, the literature indicates that social enterprises hold enormous promise in transforming the trajectory of South Africa’s waste sector but that there is a need to coordinate all actors involved in waste management in order to make the shift toward more sustainable production models.

THEORETICAL BACKGROUND 2.1. Circular economy In the 21st century, the unprecedented rate of environmental degradation, biodiversity loss and resource depletion threatens all life on Earth (Giessdoerfer et al, 2019: 757). In order to preserve these natural ecosystems, there is a pressing need to transition to more sustainable economic and sociotechnical systems (Geissdoerfer et al, 2019: 757). Conventional linear economic models – where the mode of production is “take, produce, consume, and dispose of – are not sustainable in an era of increasingly limited resources (Malinauskaite et al, 2017: 2014). In this context, the conceptualisation of a transition towards a circular economy, aimed at the continual use of resources and eliminating waste, has become widespread across the world. Such an economy creates a closed-loop system, or a closed flow of materials and the minimisation of waste (Geissdoerfer et al, 2019: 761). This closed-loop, feedback system is thus one that is restorative and regenerative by intention and design (Geissdoerfer et al, 2019: 762). In imitating natural ecosystem processes, where resources are repurposed for continual use and waste does not accumulate, the circular economy provides a pathway towards long-term sustainability (Geng et al, 2013: 1527).

Many countries have initiated a shift towards circular economy approaches. China’s administration, in the face of the country’s huge natural resource consumption and environmental degradation, has turned towards a circular economy strategy with the goals of ecological modernisation, green growth and low carbon development (Geng et al, 2013: 1526). The European Union (EU), in whose territory many secondary raw materials end up in waste streams, has implemented targets that 60% of municipal solid waste be recycled by 2025 and 70% by 2030 (Malinauskaite et al, 2017: 2017). To achieve these targets, the United Kingdom introduced a national waste management plan, with a focus on shifting towards a zero-waste economy with funding specifically allocated to recycling reward schemes, in 2013 (Malinauskaite et al, 2017: 2037). This circular economy model underpinning these approaches in many countries is multi-dimensional - it acknowledges the role of partnerships between various actors, namely between consumers, businesses, social organisations

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

and government, are integral in this reconceptualisation of production models (Malinauskaite et al, 2017: 2038).

2.2. The potential of social enterprises in the transition towards a circular economy A key actor in this circular economy approach is social enterprise. Social enterprises are business structures whose primary purpose is not the maximisation of profit but the attainment of certain social and environmental outcomes, and where private activity is conducted for public gain (Goncalves et al, 2016: 1589). Social enterprises therefore exist in the space between for-profit and non-profit worlds (Vickers and Lyon, 2014: 449). Social entrepreneurship plays a key role in social innovation, or the development of new ideas to meet social needs and create social relationships; they provide innovative solutions to issues like unemployment and serve to enhance the participation of alienated members of communities (Ambati, 2019: 1978). The business-model of social enterprises is particularly important as income generated from the activities of the enterprise can cover operating costs, essentially meaning that these enterprises theoretically do not need to rely on grants or donations to embark on their community development initiatives (Goncalves et al, 2016: 1605). These characteristics allow social enterprises to fill a gap that may exist in society as a result of market failures, where profit-maximising firms continue to generate negative social and economic externalities, as well as the failure of government provision of social services (Peattie and Morley, 2008: 50).

Ian Vickers and Fergus Lyon indicate that these characteristics make social enterprises wellpositioned to pioneer the shift towards the circular economy (2014). Increasing concern about the impact of climate change, especially on vulnerable communities, has led to an increase in environmentally-motivated social enterprises globally, many of which focus on waste management and reduction (Vickers and Lyon, 2014: 449). Social enterprises in waste management can also be considered a strategic choice due to a high potential to become self-sustaining. Emulating a closedloop system, where primary waste products can again be used as secondary inputs, can bring down input costs and increase profit margins, ultimately enhancing competitiveness in the market system (Worst, 2016: 32). A circular economy to waste management is likely to bring about financial as well as environmental benefits (Worst, 2016: 32).

Furthermore, the emphasis on social outcomes means that social enterprises are in a unique position to influence the ways in which communities think about waste. Social enterprises informed by grassroots political and social movements are better able to provide “bottom up� solutions to environmental problems, and inform many ordinary individuals of the ways in which they can contribute to enhancing environmental sustainability (Vickers and Lyon, 2014: 452). Existing in an in-between space, social enterprises may also influence the policies and actions of both corporate and public sector actors (Vickers and Lyon, 2014: 457). However, Vickers and Lyon indicate that these organisations remain limited without the institutional support of the public sector – social Page 3

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

enterprises need to be able to work in meaningful partnership with local government structures as well as the communities whose social outcomes they seek to improve (2014: 451).

A shift towards a circular economy approach to market activities, where waste is repurposed as a secondary input in a closed-loop feedback system, is essential in a context of unprecedented environmental degradation and resource depletion. Environmentally-minded social enterprises involved in waste reduction and management, in partnership with other local actors, hold enormous potential in paving the way for such a transition to take place.

SOUTH AFRICA’S WASTE ECOSYSTEM 3.1. Waste legislation In terms of waste legislation, South Africa appears to form part of the global trend transitioning towards circular economy models. Several key policy frameworks inform South Africa’s approach to waste management. The Municipal Systems Act 32 of 2000 assigns the management of waste to local government (Sentime, 2014: 86). The Polokwane Declaration on Waste Management in 2001 set important targets for waste reduction, aiming to reach a level of zero waste generation by 2022, the point at which South Africa hopes to achieve a closed-loop or circular economy (Sentime, 2014: 87). This declaration also allocates a role to private enterprises in achieving this aim through reusing products and recycling materials (Sentime, 2014: 87). The latest waste policy in effect in South Africa is the National Environment Management: Waste Act 59 of 2008 which outlines waste management objectives, highlighting the crucial goals of waste minimisation and growth of a “green economy” waste sector (Linnay, 2013: 28).

The National Waste Management Strategy (NWMS), initiated in 2011, outlines the way forward to achieve the objective of the 2008 Waste Act (Department of Environmental Affairs, 2011). The NWMS adopts a systems approach to waste reduction and management – it recognises that the achievement of its goals requires active participation on the part of the public sector, private sector, and civil society (Department of Environmental Affairs, 2011).

Many areas in South Africa have adopted their own approaches to meeting the zero waste target set out in legislature and shifting towards a circular economy. The City of Cape Town has, for example, adopted a Waste Hierarchy, which indicates a feedback loop for waste to be reinvented as secondary inputs, and where landfills are a last resort (Linnay, 2013: 29). In these ways, South African waste policy appears to embody the shift to a circular economy.

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

Figure 1: City of Cape Town Waste Hierarchy

Source: Linnay, 2013, 29 3.2. The gap between policy and practice Despite this policy framework, it is clear that South Africa is nowhere near achieving zero waste targets, nor of adopting the circular economy model. In 2019, South Africa generated approximately 54,425 tonnes of waste per day - the 15th highest level in the world (Schenk et al, 2019: 80). Only 10% of waste in South Africa is recycled while the rest makes it ways into landfills which are increasingly running out of space (Schenk et al, 2019: 81). South Africa faces a growing population, specifically in urban areas, leading to huge increases in the volume of waste generated (Department of Environmental Affairs, 2011). This increase in the 21 st century has come to “overwhelm� an already backlogged system (Godfrey and Julien, 2005: 139) When it comes to waste management, South Africa faces a number of challenges. Municipalities tasked with waste services face severe limitations including fiscal challenges, inadequate institutional capacity and corruption (Linnay, 2013: 27). Many municipalities are therefore unable to carry out their waste management mandate, especially in a context of increasing waste generation.

It is in this context that alternatives to conventional waste management frameworks need to be found. Many municipalities have turned to private enterprises in order to enhance capacity, resulting in an increase in public-private partnerships in the waste sector (Linnay, 2013: 27).

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

A second economy: the role of informal waste pickers As municipal waste collection efforts face several challenges, informal recyclers, known as waste pickers, have emerged, individuals from low-income communities who obtain a livelihood by selling recyclables to buy back centres (Linnay, 2013: 29). Waste pickers, a population of approximately 100 000 in South Africa, are estimated to recover up to 90% of generated waste in South Africa (Nowicki, 2019). These informal collectors in many ways form the base of the recycling pyramid in South Africa where household and corporate recycling rates remain extremely low (Linnay, 2013: 29).

Despite the important role of waste pickers, they remain stigmatised in society, considered nuisances, eyesores and irritations to the rest of the public (Schenk et al, 2019: 83). There is very little policy protection for these workers who operate in extremely hazardous and unhealthy conditions (Schenk et al, 2019: 83). Many waste pickers have recounted having to work in undignified conditions, without access to bathrooms and where they are in danger of being run over by garbage trucks (Schenk et al, 2019: 83). When engaging with buy back centres, waste pickers may face price discrepancies and many waste pickers have indicated a belief that bigger buy back centres manipulate market prices, monopolising the sector, or are exploitative (Linnay, 2013: 31). Confronted with these challenges, in 2007, waste pickers engaged in collective action, forming the South African Waste Pickers Association, aiming to amplify the collective voice of waste pickers and protect their rights (Nowicki, 2019) It is clear that institutional policies and processes need be put in place to recognise the potential of waste pickers in transforming South Africa’s waste ecosystem (Schenk et al, 2019: 88). Legislation to protect informal workers is necessary if they are to be fully integrated into South Africa’s waste economy (Schenk et al, 2019: 88). These policies should also include a regulation of the buying and selling of recyclables in order to ensure fair and consistent market prices (Schenk et al, 2019: 88).

3.3 The potential of social enterprises Another alternative arising in the context of municipal failure comes from social enterprise. Social entrepreneurship is believed to suit the South African context as it is a key mode of self- and community-upliftment for unemployed youth, which make up a huge proportion of the country’s population (University of Pretoria, 2018: 15). From several interviews with young people in South Africa, it appears that social entrepreneurship appears as an appealing way to enter into the labour force (University of Pretoria, 2018: 15). Approximately 43% of social enterprises in South Africa carry out activities with the aim to protect the environment (University of Pretoria, 2018: 32). It therefore appears that there is enormous potential for social enterprises to contribute to the move towards zero waste and a circular economy.

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

It is important to note that social enterprises by themselves, no matter how innovative or original, will not realistically be able to lead the transition to a circular economy by themselves (Linnay, 2013: 99). In order to be effective, social enterprises must form part of a value chain in waste management, where various actors are coordinated at a level that would provide a coherent framework for addressing challenges in the waste sector (Linnay, 2013: 99).

While South Africa’s waste legislation is a commendable framework for the transition to a circular economy, there exists a significant gap between policy and practice where many municipalities are unable to fulfil their waste management mandate. Alternatives in the waste management system are essential. Informal waste pickers and social enterprises have both emerged to close this gap, but greater institutional support is needed for these groups to operate safely and effectively.

ENVIRONMENTALLY-MOTIVATED SOCIAL ENTERPRISES IN SOUTH AFRICA The following section expands on the role and innovations of some South African social enterprises in these efforts around waste management and reduction. These enterprises are divided into two main groups: those involved in recycling, and those aimed at reducing organic waste.

4.1. Recycling initiatives All Women Recycling Based in Diep River, Cape Town, All Women Recycling (AWR) produces the kliketyklikbox™, a gift box created from used 2-litre plastic bottles (Linnay, 2013: 58). The products are sold at several retail outlets and are exported internationally to countries such as German, Switzerland, Australia, the United States and the United Kingdom (Linnay, 2013: 58).

AWR is guided by two goals: to reduce the amount of waste sent to landfills and to provide an opportunity for the upliftment of marginalised groups. The kliketyklikbox™ is produced by young women who were previously unemployed for at least two years, and are therefore vulnerable both in terms of class and gender (Linnay, 2013: 58). AWR has a clear social goal to create a safe space for vulnerable women, and describes itself as an empowerment initiative aiming to give communities the opportunity to help themselves (Linnay, 2013: 70). AWR also offers training to women employed in business management and sales skills (Linnay, 2013: 70).

AWR has several success markers. In 2016, its annual profit was USD 8 200 (Heuër et al, 2016). In that same year, AWR produced on average 350 gift boxes a day (Heuër et al, 2016). In 2015, the production of the gift boxes led to the recycling of 180 000 PET bottles, reducing CO 2 emissions by approximately 120 tonnes (Heuër et al, 2016). The social enterprise also has several partnerships Page 7

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

that contribute to its success. It engages with local waste collectors and pickers by buying 2l plastic bottles from them at reasonable prices, which generated a revenue of USD 3 500 for waste pickers in 2015 (Heuër et al, 2016). AWR also engages with the local community in the form of raising awareness around environmental issues and recycling in schools (Heuër et al, 2016). Another important partner that with which AWR engages is the social enterprise Cocoafair which sells some of its fair trade chocolate in the gift boxes (Linnay, 2013: 58).

AWR as a model however does have some limitations. One of AWR’s biggest challenges is the competition from large recycling companies which sell PET bottles in bulk to foreign markets (Heuer, 2016). Another issue is the lack of security and infrastructure faced by employees, which affects their mobility and attendance at work (Heuër et al, 2016). Furthermore, Joanne Linnay makes the important point that while one of the objectives of the social enterprise is to support the environment and limit waste, the fact that most of the products are exported means that the organisation has a significant ecological footprint due to emissions from transport (Linnay, 2013: 91). An emphasis on recycling without a broader, more holistic conceptualisation of environmental sustainability is therefore a huge drawback in terms of the enterprise’s ideology (Linnay, 2013: 91).

Rhino Manufacturing Based in Port Elizabeth, Rhino Manufacturing is a large profit maximising company involved in the production of plastic products. Rhino Manufacturing makes products for the construction, agricultural and packaging sectors, and whose make-up is 90% recycled plastic (Keenan, 2019). The company recycles plastic waste, converts it into pellets and uses these pellets to create new plastic products (Pillay, 2019). Rhino Manufacturing also has a small branch in East London and is in the process of setting up several buy back centres (Keenan, 2019).

Owing to the company’s scale, Rhino Manufacturing is not a conventional social enterprise, but remains guided by environmental and social aims. This enterprise is based on the circular economy in that it aims to ensure that no plastic waste ends up in landfills (Keenan, 2019). Executive director Siyabulela Mandla, who owns 41% of the company, is motivated by social as well as environmental commitments and the company aims to increase employment, particularly among young people (Keenan, 2019). Rhino Manufacturing also appears to be a space in which employees do have a voice - 80 employees, who each on average support five dependents, were recently given a 10% share of the enterprise (Keenan, 2019).

Due to its significant market size, Rhino Manufacturing’s operations are funded through its own revenue (Pillay, 2019). Rhino Manufacturing, however, has faced significant challenges. In 2018, Rhino Plastics, as it was formerly called, was almost closed owing to rising input costs and difficult South African macroeconomic conditions (Pillay, 2019). It was only through an empowerment deal with the Industrial Development Corporation (IDC) that the enterprise was able to remain open (Pillay, 2019). The company appears to have little interaction with waste pickers, but as more buy Page 8

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

back centres are set up, more engagement may occur (Keenan, 2019). Rhino Manufacturing also does not appear to have a relationship with its municipality but Mandla recently stated that the enterprise was considering “new opportunities in the public sector� so there may be more engagement with local government in the future (Pillay, 2019).

Siyabuddy Siyabuddy Recycling and Waste Management was the brainchild of two young entrepreneurs Siyabonga Tshabalala and Nomuntu Ndlhovu, who aimed to tackle waste and littering (Mtshazo, 2018). Siyabuddy, originating in 2012, currently operates in Nkomazi Municipality in Mpumalanga and services the entire municipality in terms of the collection of recyclables (Mtshazo, 2018).

Siyabuddy also manufactures pavement bricks made from recycled plastic bags which can be used as roof tiles (SEED, 2020). The enterprise has created 28 direct jobs for young people and revenue for 1033 waste collectors in the area, where all other recyclable collection services had shut down (SEED, 2020). Siyabuddy engages with waste pickers not only in terms of financial transactions of recyclables but also by offering them training on waste separation (SEED, 2020). Siyabuddy then sells the waste to recyclers across South Africa to generate its own revenue, pay its staff and operating costs (SEED, 2020).

Siyabuddy has had a tangible impact on waste management in the Nkomazi municipality. It redirects 120 tonnes of waste from landfills every month and achieves an average monthly revenue of R280 000 (SEED, 2020). Siyabuddy therefore has some capacity to fund its own operations and sustain itself (Mtshazo, 2018). Despite these successes, the business has had to face several challenges, including a lack of cash flow and insufficient resources to meet demand (Mtshazo, 2018). The income of the organisation was not sufficient to allow for its growth as demand increased (Mtshazo, 2018). To combat this challenges, they have received support from the Industrial Development Corporation (IDC), which assists in the purchase of trucks, in the form of a R4.1 million grant, and mentoring for leaders of the social enterprise (Mtshazo, 2018).

Siyabuddy also works in partnership with the local municipality, operating at the Steenbok Landfill Site along with municipal workers and waste pickers (SEED, 2020). Siyabuddy is an important social enterprise example as it illustrates the way in which these kinds of enterprises can fill the gaps in municipal waste systems in partnership with the municipalities themselves, in a coordinated waste management system. Furthermore, Siyabuddy is one of the only enterprises of its kind operating in a rural rather than an urban area, providing a model for increasing recycling in rural areas where many recycling facilities are not readily available.

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

Oasis Recycling The Oasis Association in Cape Town conducts an extensive recyclable recovery programme along with its other operations (Tischler, 2013: 69). Its aims are primarily social as it operates in order to provide employment and skills development to individuals with intellectual disabilities, or those with extremely high barriers to mainstream employment (Tischler, 2013: 69). The collection of recyclables by Oasis is a means of generating additional income for the organisation (Tischler, 2016: 69). Oasis collects recyclables from over 250 commercial businesses as well as the government for free and on a weekly basis – its partnership with the local community in Claremont, businesses and local government ensures a steady supply of recyclables to Oasis (Tischler, 2013: 69). After collection and separation, Oasis delivers recyclables to big recycling companies, which provide them with 42 per cent of their income - the rest of their income comes from its second-hand Book shops (Tischler, 2013: 69).

From these operations, Oasis Recycling is estimated to save the City of Cape Town approximately 21 000 cubic metres of landfill each year, and therefore contributes to minimising waste and maximising secondary inputs (Tischler, 2013: 69). As of 2019, Oasis Association was able to provide employment opportunities to over 500 people with intellectual disabilities (Oasis Association, 2018/2019: 2). At this stage, Oasis is completely self-sustaining - all of its operations costs are covered by income generated (Oasis Association, 2018/2019: 4).

A key challenge to the social enterprise is the increasing growth of the recyclables they receive every month, and the lack of storage and sorting facilities to process this amount (Tischler, 2013: 69). One huge set-back suffered by the organization in 2014 was a fire that started in the recycling storage facility and which spread to other buildings, causing huge damage (Oasis Association Spokesperson, 2014). It was through donations that the organisation was able to rebuild and operates at full capacity today (Oasis Association Spokesperson, 2014).

Unconventional Waste Solutions Based in Johannesburg, Unconventional Waste Solutions is a social enterprise that aims to reduce waste indirectly by providing waste pickers with the resources they need to conduct their operations in a safe and effective manner. Unconventional Waste Solutions provides informal waste collectors with visible uniforms and safer waste trolleys which also double up as mobile billboards where companies can advertise their brands (Sunday Times, 2018). The uniforms serve to make waste pickers more visible in order to limit potential accidents as a large number of waste pickers fear being run over by trucks (Sunday Times, 2018). The purpose behind the advertising of wellknown businesses on the trolleys is twofold: it helps legitimise the work waste pickers do and mitigate against the stigmatisation they face and companies are expected to provide support to waste pickers in return for the advertising, in the form of food or other compensation (Raborife, Page 10

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

2016). The company also trains waste collectors, allowing for a re-imagination of waste recovery as a business opportunity rather than just a survival necessity (Sunday Times, 2018). The company to a certain extent has aided in formalising this informal work, by providing waste management services led by waste pickers at events like the 702 Walk the Talk event, allowing them to enter into the formal waste economy (Sunday Times, 2018).

Funds for this enterprise come from “Jozi My Beginning”, a municipal initiative aimed at developing local and innovative business, which has put aside R50 million for the project (Raborife, 2016). The organisation is also partnered with Absa which offers basic financial planning assistance to waste pickers (Raborife, 2016). Unconventional Waste Solutions is therefore a platform which serves to enhance the human, social and physical capital of waste pickers, providing them with the skills and equipment to conduct extensive and safe recycling operations.

Several social enterprises, including AWR, Rhino Manufacturing, Siyabuddy, Oasis Association and Unconventional Waste Solutions, have come to form part of South Africa’s efforts to reduce the level of waste in landfills. All of these organisations have specific social aims, with AWR, Oasis Association and Unconventional Waste Solutions focusing specifically on providing opportunities for marginalised people in society – such as unemployed women, individuals with intellectual disabilities and waste pickers.

Community engagement in training and raising awareness is another feature of many of these enterprises, especially Siyabuddy and AWR. With the exception of Siyabuddy, engagement between these enterprises and the municipalities in which they operate appears superficial at best, which may impede overall coordination of the waste management system.

4.2. Organic waste reduction iZindaba Zokudla Meaning “the conversation about food”, iZindaba Zokudla is a multi-shareholder engagement project aimed at creating the opportunity for urban agriculture in Soweto (Malan, 2018: 1-2). While this project is based primarily around food security in urban systems and social inclusion, it models the circular economy as its agricultural practices aim to reduce waste and look to the immediate environment for inputs (Malan, 2015: 53-55). iZindaba Zokudla is cognisant of calls to reform agricultural strategies and the move to a systems approach, rather than a linear production model (Malan, 2015: 54). Agricultural development under this model is based on an ecological design that approximates a closed-loop system (Malan, 2015: 55). The gardening systems implemented in this endeavour focus on re-using the outputs of waste, feeding back secondary materials into the system (Malan, 2015: 55). Farming practices therefore seek to reuse water in the food production process and use food waste products in compost manufacturing, in order to fertilise new crops (Malan, 2015: 55). These processes emulate the circular economy.

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

iZindaba Zokudla is not a social enterprise in itself but is a multi-stakeholder engagement service learning project aimed at upskilling existing agricultural enterprises in order to improve agricultural practices in urban areas (Gwamba, 2018: 54). This engagement originally was through small-group participation in technology development with urban farmers in order to enhance agricultural innovation (Malan et al, 2015: 2). In this way, the project acts as a kind of social enterprise enabler as it aims to create enterprises that positively impact people, the planet and profit (Gwamba, 2018: 55). Izindaba Zokudla is community-driven, and creates opportunities for historically disadvantaged people - it aims to empower local urban farmers in poor areas, who are at a competitive disadvantage in comparison to established monoculture agribusiness (Gwamba, 2018: 55). In promoting closed-loop, circular production systems, it also enhances cost competitiveness amongst small-scale urban farmers as input costs decrease, creating a system of low entry costs (Malan, 2015: 55).

To some extent, local government has been incorporated into this process - in meetings, certain local councillors have been present and have used this space to address farmers (Gwamba, 2018: 64). These addresses were not always met with favourable responses by farmers, perhaps as a result of a continued “top down” approach rather than a partnership between local government and citizens (Gwamba, 2018: 65). Engagement between the public sphere and the farmers has therefore not been entirely successful in this project. The service learning participatory method in technology development has also brought about challenges as Professor Naudé Malan, pioneer of the project, indicated that he encountered problems when incorporating his students into the project, potentially emerging as a result of language barriers and a lack of understanding of the value of the project (Gwamba, 2018: 60). Challenges emerging from these engagements indicate a lesson that partnerships between different groups need to be based on a shared vision, perception of value, and must address underlying power dynamics in order to be effective.

This service learning approach does have other limitations. The project is funded by the South African National Research Foundation, the UJ University research Committee and the UJ Teaching Innovation Fund (Gwamba, 2018: 54). Therefore the project remains dependent on UJ, and time and funding constraints have hindered its progress (Gwamba, 2018: 60).

Waste to Wing Waste to Wing is a new project aimed at producing a large portion of South Africa’s aviation fuel from waste plants, particularly from agriculture and invasive species While this project is still starting up, it aims to one day produce up to 15% of the aviation fuel used at OR Tambo airport (BusinessTech, 2018). In the near future, therefore, we could live in a world with “planes that [...] fly on weeds” (BusinessTech, 2018). The Waste to Wing project has approximately R19 million in funding from the EU’s Switch Africa Green programme to cover large start-up costs and high barriers to entry into the market (BusinessTech, 2018). This project is a partnership between the Page 12

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

South African enterprise Fetola, the WWF, and SkyNRG (BusinessTech, 2018). Fetola is in the process of choosing 25 small businesses among several applicants to collect and supply the plant matter needed - therefore providing an opportunity for job creation (BusinessTech, 2018).

Some challenges anticipated by the project are the costs of transporting the plant waste and the cost of the waste material itself (BusinessTech, 2018). This project is an exciting example of a partnership between social enterprise and other organisations, but it is still too early to tell how successful this idea would be in meeting South Africa’s aviation fuel demand and reducing the level of plant waste produced by South Africans (BusinessTech, 2018).

Agriprotein Agriprotein uses organic waste to farm flies, and utilises black soldier fly larvae as high-protein feed for animals (Grant-Marshall, 2017). Originating in 2008, Agriprotein, located near Cape Town airport, is the first and largest commercial-scale insect meal producer in the world which “herds” over 8.5 billion flies (Guerrero, 2019). It produces “MagMeal” a 55% protein organic animal feed as well as “MagOil” an omega-rich oil used in animal feed (Grant-Marshall, 2017). In rearing black soldier fly larvae from these waste sources, this operation diverts organic waste from landfills, using it as a primary input (Grant-Marshall, 2017). One fly farm currently takes in 250 tonnes of organic waste a day which in turn produces 15 tonnes of dry insect meal (Guerrero, 2019). Nutrition is therefore provided from organic waste which also has the positive externality of easing an already overloaded waste system (PEDI, 2020).

Agriprotein was initially launched by the Philippi Economic Development Initiative in 2012 (GrantMarshall, 2012). The company faced an astounding number of start-up challenges, such as failing machinery and burst pipes, which they eventually overcame (Grant-Marshall, 2017). Today, Agriprotein is now less of a social enterprise and more of a large-scale, international business now valued at R1.5 billion (Grant-Marshall, 2017) and boasts a yearly income of USD 13 - 15 million generated from its sales (Guerrero, 2019). In 2016, Agriprotein started industrial production (Guerrero, 2019). In 2017, Agriprotein partnered with Christoff Industries in a USD 10 million deal with the shared goal of establishing 100 of these fly farms around the globe by 2024 (GrantMarshall, 2017). Technological innovation informed by Research and Development is key to the sustainability of the business - the company is currently researching, in partnership with Stellenbosch University, potential anti-inflammatory properties of the larvae for domestic livestock (PEDI, 2020).

Owing to its scale, this example may not necessarily speak to the realities of many social enterprises which are still trying to find a market niche in order to sustain their operations. It does, however, indicate the scope these enterprises may have in the future, as Agriprotein is now a highly successful and globally impactful company.

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

iZindaba Zokudla, Waste to Wing and Agriprotein illustrate the diverse use of organic waste as a secondary input, in agriculture, fuel as well as in creating high-protein feed for animals. iZindaba Zokudla appears most consistent with the principles of social enterprise as it aims to provide opportunities to marginalised small-scale farmers in an attempt to enhance food security in Soweto. There is very little evidence of meaningful engagement between these enterprise and municipalities in waste management practices.

LESSONS FROM THE REST OF THE WORLD There are several international examples of social enterprises focused on managing waste, which may be helpful additions to the waste management ecosystem in South Africa. A few examples from both developed and developing countries, and their applicability to the South African context, are highlighted below: 5.1. Social enterprises in developing countries Ahmedabad, India In India, 40% of social enterprises have an objective to improve environmental sustainability, specifically around waste management in a context where formal waste channels are not always effective and many landfills are already overflowing (Ambati, 2019: 1979). In the city of Ahmedabad, several of these enterprises exist. One of these is Ekam Eco Solutions which has created a waterless urinal, “Zerodor” to reduce the waste of water (Ambati, 2019: 1980). They also create a natural fertiliser from human waste (Ambati, 2019: 1980). In this way, Ekam minimises sewage in the city (Ambati, 2019: 1980). Start-up costs for Ekam’s products are low and the “Zerodor” has received high demand from companies, meaning that the enterprise’s income scope is high and it is able to sustain itself (Ambati, 2019: 1980). Ekam has been successful in reducing human and water waste. This example is especially relevant to the South African context where water is a scarce resource, providing a way forward in terms of water use minimisation and the reinvention of human waste as a resource.

Another important waste focused social enterprise in Ahmedabad is Let’s Recycle (Ambati, 2019: 1982). This enterprise integrates local rag pickers as part of its waste collection, processing and recycling initiative (Ambati, 2019: 1982). Let’s Recycle has adopted many technologically innovative methods like a semi-automatic material recovery facility which allows the enterprise to minimise operational costs and maximise profits (Ambati, 2019: 1982). Rag pickers are also provided with additional training in waste collection and sorting (Ambati, 2019: 1982). Let’s Recycle is able to collect 50 tonnes of waste per day from clients from which they receive revenue, indicating that the business has large scope (Ambati, 2019: 1982). The integration of rag pickers provides important Page 14

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

lessons to South Africa with regards to the positive impact a meaningful integration of waste pickers, alongside technological innovation, can have to our own social enterprises.

Dar es Salaam, Tanzania Dar es Salaam is the largest commercial city in Tanzania, with a population of over 5 million people and a population growth rate of 4% (Charles, 2019: 5). Dar es Salaam generates 5 600 tonnes of waste every day, putting enormous pressure on the municipal waste system (Charles, 2019: 5). In unplanned areas of the city, waste collection is often poor, constrained by the huge levels of waste generated and limited financing (Charles, 2019: 8). It is in this context that Green Conservers was established in 2017 (Charles, 2019: 8). Green Conservers recycles waste to make briquettes for domestic consumption and as an alternative source of energy to wood, in order to reduce the number of trees cut down for fuel (Charles, 2019: 8). This social enterprise has faced several challenges including difficulties attracting start-up capital from banks, and competition from other sources of cheap charcoal on the market (Charles, 2019: 8). They also faced the challenge of local government leaders demanding bribes from the group before they collected waste (Charles, 2019: 8).

This social enterprise was able to overcome some of these challenges as they were able to raise capital gradually and acquire technology that made their operations more effective over time (Charles, 2019: 8). Income from the venture is now able to pay salaries and the excess is reinvested into the social enterprise, enhancing its own sustainability (Charles, 2019: 8). Sustainability is also ensured through engagement with the local community, from going door-to-door and demonstrating products to using various media platforms to educate people about the importance of integrating waste back into productive streams (Charles, 2019: 9). Green Conservers is now able to produce 500kg of briquettes a day and sell them with a profit margin of up to 30% (Charles, 2019: 9). This enterprise thus provides an important lesson about the need to engage with local community members in order to obtain legitimation and sustain business operations, and provides another example of how plastic can be reinvented as a resource.

5.2. Social enterprises in developed countries Vancouver, Canada The United We Can (UWC) bottle depot in Vancouver is a social enterprise that organises the informal sector active in resource recovery, known as “binners� (Tremblay et al, 2009: 14). The depot serves over 1500 regular customers, providing it with revenue, but social aims dominate the organisation’s structure as it aims to relieve the hardships faced by informal workers (Tremblay et al, 2009: 13). This organisation has resulted in increased income, greater social inclusion (as a result of enhanced legitimacy) and more efficient resource recovery for those engaging in the sector Page 15

Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

(Tremblay et al, 2009: 15). UWC provides employees with tools for social innovation as they are provided with training in customer relations and other topics (Tremblay et al, 2009: 18). UWC has also formed a Binners’ Association to enhance the legitimacy of the activities of these informal workers (Tremblay et al, 2009: 18).

This example provides a significant framework for the ways in which informal workers like waste pickers can find support and legitimacy when incorporated into social enterprises. This model, however, may not reflect the realities of the South African context – “binners” in Vancouver make up a much smaller proportion of the population in comparison to their numbers in South African cities (Tremblay et al, 2009: 18). This approach in South Africa would need to be on a much larger scale and therefore would likely need a larger stream of revenue.

Wellinborough, United Kingdom Another recycling social enterprise in the developed world is Think3e, established in Wellinborough in (Vickers and Lyon, 2014: 455). This social enterprise experienced rapid growth, as a result of its focus on corporate customers and support from the public sector (Vickers and Lyon, 2014: 455). After 2 years, the turnover of Think3e was £2.5 million (Vickers and Lyon, 2014: 455). This large scale drew government attention to the enterprise and contracts with local authorities and government agencies were drawn up, thus integrating local municipalities into this scheme (Vicker and Lyon, 2014: 455).

By 2012, however, the group began to fragment as many stakeholders broke away from the parent group, opting instead to operate as separate entities (Vickers and Lyon, 2014: 462). This fragmentation was likely a result of the fact that there were many different stakeholders, including the private sector, public sector and civil society, all with different goals, making up the social enterprise (Vicker and Lyon, 2014: 462). The lesson that South Africa could learn from this venture is that for these fast-growing social enterprises to remain viable, all stakeholders and members need to buy into the same core mission, and common social goal which brings about collective action (Vickers and Lyon, 2014: 462).

These examples in Ahmedabdad, Dar es Salaam, Vancouver and Wellinborough, while representing a variety of contexts, provide lessons for social enterprises dealing with waste management in South Africa. Ekam Eco Solutions in India provides an innovative design which may reduce the pressure placed on water resources, as well as a means of reusing human waste as fertiliser. Green Conservers in Dar es Salaam illustrates the ways in which plastic may be reinvented as an energy source for low income households. UWC in Vancouver, portrays a variety of ways in which recycling depots can support waste pickers, in order to improve livelihoods and enhance waste collection Think3e, in contrast, shows the dangers of partnerships with actors who do not all prioritise the same social interests, which may undermine the effectiveness of collective action.

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

CONCLUSION From the literature, it is clear that social enterprises play a meaningful role in reducing and managing waste. Examples from South Africa, was well as from the international experience, indicate that these forms of organisation, despite experiencing a variety of challenges, are wellpositioned to bring about both social and environmental change, allowing a shift in attitudes towards waste to take place from a community level. Certain features allow social enterprises to bring about change and have a long-lasting impact, namely partnerships with other groups, a cohesive and collective social mission between partnerships, community involvement and the means to sustain themselves. If these features are cultivated, social enterprises, in collaboration with other actors in the waste sector, have enormous potential to aid South Africa in a transition towards a more sustainable, circular economic system.

Literature review by Claire McCann

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Literature review: Social enterprises aimed at waste reduction and waste management in South African communities

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