The lack of waste disposal management in communities is a business opportunity with growth potential. This as a large amount food and solid waste ends up in landfills.Two entrepreneurs with a passion for social impact are running successful waste management businesses.
How they started
Mawande Jara was inspired to start Mkhuzangwe Consultancy after he observed that not enough was being done by his municipality to manage waste and ensure that Khayelitsha 17 residents lived in a clean environment.
His business tackles waste one truckload at a time. On a monthly basis they can deliver 45 tons of cardboard, 300kg of packed plastic and 100kgs of white paper for recycling. While it might seem like a drop in the ocean, Mkhuzangwe Consultancy is making a positive contribution in assisting his community manage their waste.
In 2021 during the pandemic Jara secured a contract with one of the local malls in Cape Town. Getting a contract was a game changer that enabled him to move his business to Khayelitsha Mall. Now that the business is at the mall, they collect waste from the mall and once it was all sorted it is taken to recyclers and they get paid for it.
Nhlanhla Rikhotso started OT Rubble Removal in 2018 when he saw a business opportunity in tackling solid waste management. Rikhotso resigned from his reputable job and used his pension money to invest in his business. His business manages waste and ensures that Polokwane community members live in areas that are free from solid waste.
His resilience as an entrepreneur was tested when two of his four-ton trucks had mechanical challenges and he was forced to sell them. Trucks were an expensive purchase and losing them was hard on the business. “The downfall of this investment was purchasing 2 old trucks, which became very costly mechanically, and I had to sell them in the second half of 2021,” said Rikhotso. The loss of the trucks unfortunately led to job losses in the business.
With one truck, he can transport up to four tons of building rubble to the landfill site each day and this adds up to 80 tons of solid waste a month. The business is based in Polokwane CBD and is within close proximity to popular surrounding suburbs that have a strong stance against illegal dumping.
How they turn waste into profits
Since the launch of The South African Waste Pickers Association in 2009, more entrepreneurs are entering the waste management sector. Their businesses have led to job creation, and they ensure that waste does not end up in landfills.
“Food waste that ends up in landfills is hazardous to our people. I take the food waste to pig farmers so that they can feed it to their livestock,” said Jara. The business works closely with waste pickers that bring waste to the business.
The Council for Scientific and Industrial Research (CSIR) found that the waste management sector in South Africa has an estimated turnover of at least R15.3 billion per annum. The business model of diverting waste into profit is innovative.
“We divert rubble from going to the landfill by recycling it and using use it to patch roads in Mamahule village,” said Rikhotso. To make an additional income, they also sometimes clean up the rubble and sell it to customers to use for their building projects.
Creating a positive social impact
According to the Quarterly Labour Force Survey for the first quarter of 2022, the unemployment rate was 63,9% for those aged 15-24 and 42,1% for those aged 25-34 years, while the current official national rate stands at 34,5%. Mkhuzangwe Consultancy has eight full-time employees that are providing for their families through waste management business.
“I’m proud that even during the pandemic my business remained sustainable, and we were able to pay our staff,” said Jara.
Illegal dumping is a huge challenge in informal settlements and has a negative impact on the health and wellbeing of residents. “Poor people are often forced to live in hyenic conditions, and I want to use my business to change that,” concluded Rikhotso.
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