How waste recycling could spur economy

The economy has been weighed down by the heavy burden of high import bills for decades. But this could change if the necessary support is given to investors in the waste material recyling sub-sector.

Tuesday, January 21, 2014
Waste polythene paper that is used to make sheeting (inset) for construction and other uses. Though the recycling industry is small, it is growing steadily and attracting more investors. Courtesy photo.

The economy has been weighed down by the heavy burden of high import bills for decades. But this could change if the necessary support is given to investors in the waste material recyling sub-sector. Being an import economy, Rwanda spends billions of francs on imports each year. This could be saved if the private sector and government embrace recycling of waste products, experts have said.According to Gilbert Ndagijimana, the managing director of SOIMEX Plastic, a film extraction and package recycling factory in Remera, Gasabo District, recycling of materials like used plastic bottles, polythene bags, jerry cans and metals does not only promote a green economy and boost the industrial sector, it also acts as an important substitution mechanism the country needs to save billions of dollars spent on imports every year."There are many products we import and, yet some of them can be made from here if we recycled some of the waste materials. "This would boost exports industry and also act as an additional source of income for unskilled citizens,” he said.Ndagijimana added that it is possible to produce locally most of the goods the country imports, including textiles, fibre products, mosquito nets, bio-degradable plastic bags and agricultural inputs if stakeholders embraced recycling."We are buying products from China, Europe, Asia and elsewhere, yet some of the raw materials used to make them are garbage and waste products collected from Africa and recycled in those countries,” Ndagijimana said.          It’s important for the industrial sector and other stakeholders to embrace bio-degradable mechanisms to promote a green economy.He argued that the recycling business has the potential to boost the country’s export sector if government and private sector investors supported it.Ndagijimana noted that if it is supported fully, it would boost the country’s export receipts and sustain local and regional demand for industrial products.SOIMEX productsNdagijimana said the firm gets most of its raw materials from REMA "but we also buy from individuals at Rwf200 a kilo of plastic waste’. Some of the products made by the firm include garbage bags, a wide range of polythene sheeting for the construction sector and bags for seedlings.He said currently he supplies real estate developers, especially for roofing purposes and farmers.  Challenge of high start-up capitalHe, however, noted that high cost of electricity and mobilising raw materials are some of the biggest challenges threatening the recycling sector.According to manufacturers, many industries do not operate at full capacity because of high costs of production and inadequate electricity power supply. "For the local manufacturing sector to become more competitive, we have to think of innovative ways to reduce operational costs.” Ndagijimana said investors are fearing to invest in the recycling business because of the high initial capital investment required."One needs about $100,000 (about Rwf69m) on average to install one line of recycling processing unit. This is still very high compared to the number of units one needs to have to recycle at full capacity.”Joint partnerships and banks will play a vital role in supporting this business, Ndagijimana added.Experts sayBruce Musoni, an environment facilitator at the Private Sector Federation’s Chamber of Industries, said waste product recycling could greatly reduce the cost of raw materials and overall cost of doing business.Suchir Bhatnagar, the general manager of SRB, paper bag manufacturing plant, said there are enormous business opportunities in waste products recycling, which investors should take advantage of."There is growing concern for economies allover the world to embrace green economies. Challenging as it is, the initiative has huge business opportunities for investors who are willing to take risks.”The government banned all none bio-degradable plastic bags in 2004, allowing only plastic tubing with 80mm to 400mm (40-60 microns).Dr. Rose Mukankomeje, the director general of the Rwanda Environment Management Authority (REMA), urged the public, especially manufacturers to support a green economy through clean production methods by recycling waste products.She said recycling ensures sustainable growth and safeguards the environment.Steven Niyonzima, the Rwanda Resource Efficient and Cleaner Production Centre national co-ordinator, said waste product recycling will not only lead to sustainable development, but also attract investments.Other industry players Ecoplastic also deals in plastic materials, while Coped (Company for Environment and Development), a cleaning company, recycles organic waste. Ecoplastic is said to collect about 30 tonnes of waste daily.COPED recycles one tonne per day of organic waste used in the production of fuel briquettes which helps in cooking. Ecoplastic produces plastic bags used in tree nursery beds, green house tents for horticulture, as well as ordinary sheeting and roofing tents.Estimates done last year indicate that in Kigali City that 186 tonnes of solid garbage is collected every day and only two per cent is recycled.