Solid and E-Waste Management

November 2022

Indicative Return:

20% – 25%

Investment Timeframe

Short Term (0–5 years)

Business Model Description

Develop and operate commercial dumpsites for the collection, storage and utilization of solid and e-waste from residential, commercial and industrial sources utilizing modern equipment, such as self-loading trucks, mixers and sorters, through a public-private partnership model. Recycling activities accompany waste disposal processes with possibility of biogas or energy production. The public actor invests in infrastructure, such as land, systems and logistics for collection, as well as sorting and recycling the waste. The private actor builds, operates and manages recycling plants and systems for reuse, making a profit from the provision of service and sale of recycled and re-used material.

Expected Impact

Minimize health hazards associated with uncollected waste and move towards a circular economy with efficient and sustainable resource use.

Regions

Southern Highlands, Eastern, Northern, Lake

Sector
Infrastructure > Waste Management

Direct Impact SDGs:

Indirect Impact SDGs:

Sector
Infrastructure

Development need: Infrastructure is both a facilitator for development and an attractive investment channel. However, the sector is faced with persistent structural challenges, including a heavy dominance of inefficient parastatals in infrastructure provision, accompanied by a poor track record for privatization and private involvement in utilities in the past (1).

Policy priority: The government is committed to develop quality and reliable infrastructure that promotes socio-economic development of Tanzania. Particular emphasis is placed on the provision of quality and safe construction works of roads, bridges, ferries, airports, buildings, mechanical, electrical and electronics in collaboration with private stakeholders (2).

Gender inequalities and marginalization issues: Despite legal protection granted by laws and enforcement mechanisms, discrimination against women in accessing infrastructure and especially land persists in Tanzania. It emanates from the frequent application of customary laws, and an unfamiliarity with formal laws among local leaders and authorities (3).

Investment opportunities introduction: Tanzania’s strong growth in real GDP from 4.1% in 2021 and 5.8% in 2022 is expected to promote significant development in infrastructure needs, including human settlement and particularly modern housing facilities as well as waste and agricultural storage solutions (4, 5).

Key bottlenecks introduction: The growth rate of urban areas in Tanzania has often been higher than the capacity of authorities to cope with the provision of basic services, including delivery of planned, surveyed and serviced land for housing development as well as waste management and horticulture infrastructure (6).

Subsector
Waste Management

Development need: The management of solid waste generated in urban centres of Tanzania is a serious challenge for local government authorities. The situation in major cities, particularly Dar es Salaam, is of particular concern because of a rapidly growing population and urbanization without adequate waste management systems (7, 8).

Policy priority: The government is committed to promote efficient and environmental friendly waste management systems, efficient technologies for solid waste management, solid waste collection and transportation systems and seeks to strengthen public-private partnerships in solid waste disposal undertakings (7, 8, 9).

Gender inequalities and marginalization issues: Whilst there is evidence of a traditional gendered division of labour in waste management as a major informal economy activity, the subsector has not only offered women employment, but also enabled women to become more empowered through increasing their income and developing meaningful civic activities (11).

Investment opportunities introduction: Waste management opportunities include development of a full cost recovery waste fee system, improvement of waste logistics including low cost transfer stations, separation of organic waste to composting and fertilizer generation, recycling activities for biogas and energy production, as well as collection, mixing and sorting equipment and waste storage structures (7, 8, 9, 10).

Key bottlenecks introduction: Challenges in waste management include improper payment of the refuse collection and institutional structures, low levels of law enforcement and lack of coordination with other departments or sectors; political interferences by ward and street officials, and insufficient budget for operations and maintenance (7).

Market Size and Environment
Critical IOA Unit

Tanzania has a total estimated waste recycling investment potential amounting to USD 8,300,000. This is split between plastics (USD 2 million), paper products (USD 2 million), e-waste (USD 1 million), used oil (USD 3 million) and lead from used batteries (USD 300,000) (9).

Dar es salaam City generates about 4,252 tons of solid waste per day. The collection capacity is only 2,473 (around 58%). The remaining potential is around 1,779 tons per day (42%). The current solid waste generation rate pf 1 kg/day per household is higher than typical values for developing countries, which range from 0.4 to 0.6 kg/day per household (8,9).

Indicative Return

20% – 25%

Investment Timeframe

Short Term (0–5 years)

An economic analysis of solid waste management options in Morogoro Municipality suggests an investment timeframe of three years under the assumption that at year 3 the benefits or outputs and cost of the management options can easily be tracked, such as for biogas, compost manure and recycled products (3).

Ticket Size

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Business – Supply Chain Constraints

Market – High Level of Competition

Capital – Requires Subsidy

Sustainable Development Need

Tanzania’s major cities produce 4.6 million tons of solid waste per year, out of which only 52, equivalent to 2.4 million tons, is collected. The uncollected waste causes eruptive health hazards, proliferation of diseases, environmental degradation and depletion of authorised land fill sites (19)

Around 7% (equivalent to 322,000 tons) of solid wastes are e-waste. These are emerging wastes as a result of the use of electronic and electrical equipment. The uncollected e-waste adds to the challenge of environmental pollution (19)

Expected Development Outcome

Efficient and sustainable solid waste management will lead to improved human health particularly in reducing the incidences of eruptive diseases and environmental degradation (9,19,20)

Efficient and sustainabale e-waste management will lead to reduction in environmental pollution through application of sulutions such as recycling (i.e converting waste materials into new products (19).

Primary SDGs addressed

Secondary SDGs addressed

Directly impacted stakeholders

People: Urban communities benefit from a clean and safe environment with reduced incidents of diseases and improved health conditions.

Gender inequality and/or marginalization: Women, the urban poor communities and other marginalized groups (including the youth) are able to secure employment opportunities in waste collection, transportation, storage and in the recycling plants

Planet: The environment benefits from waste management, which reduces damage and conserves scarce resources.

Corporates: Companies obtain new opportunities in operating commercial dumpsites, recycling facilities and trade in modern equipment, including commercial self-loading trucks, mixers and sorters.

Indirectly impacted stakeholders

Gender inequality and/or marginalization: Women, will enjoy secondary benefits in terms of reduction on the daily drudgery of collection and burning household waste

Corporates: Businesses selling waste collection, transport, storage and recycling materials enjoy greater demand for their products, and secondary businesses, such as small shops obtain new income generation opportunities.

Outcome Risks

Improper management and handling of solid waste can pose a threat to Climate Change and eventually in the achievement of sustainable development. Waste being one of the contributors of greenhouse gases, affects climate change and it is for this reason that Tanzania should develop sustainable waste management technologies and initiatives to cub this growing global challenge (19)

Improper collection and handling of e-waste increased environmental and health risks. The effects of e-waste to human health and wellbeing includes: respiratory problems, oxidative stress, DNA damage and the possibility of causing cancer. This is chiefly due to their chemical and physical characteristics which sets them apart from other forms of wastes that are produced by human activities or industrial wastes.  (35).

 

Impact Risks

Poor participation of targeted communities, especially low-income earners due to fee barriers, alongside suboptimal distribution and logistics infrastructure, may limit the expected impact especially in informal settlements (10, 16, 19).

The local government’s reluctance to mobilize communities in domestic waste collection could limit the impact of the project. People are not adhering to regulations including by-laws because of poor enforcement system by the Local Governments. Sometimes local authorities do not take actions to residents found disposing waste haphazardly. There are also incidences of political interferences in some areas which prohibit the refuse charged by the wards and Street offices. (18).

Failure of the government and the Municipal Authorities to honor their obligation to provide adequate resources related to SWM may limit the effectiveness of the projects. Government reluctance to provide necessary subsidy for recovering the cost-of-service delivery occasioned by the poor communities’ ability to pay for services may further compound the problem (9, 10,16).

Impact Classification

B—Benefit Stakeholders

What

Solid and e-waste management minimizes health hazards associated with uncollected refuse, creates a clean environment and offers income generation opportunities for urban communities.

Who

Low-income communities in urban and congested areas and those working in the informal sector as well as the environment benefit from solid and e-waste management.

Risk

While the solid and e-waste management model is proven, lack of adequate resources for cost-of-service recovery and reluctance of local government to mobilize communities requires consideration.

Impact Thesis

Minimize health hazards associated with uncollected waste and move towards a circular economy with efficient and sustainable resource use.

Policy Environment

National Solid Waste Management Strategy, 2018: The strategy aims at attaining sustainable management of solid waste that contributes to achieving economic and social benefits to Tanzanian people. This strategy has been developed to enable the country meet the goals for solid waste management (9)

National Environment Policy, 1997: Outlines government commitment to promote environmental sound practices to address the challenges related to: land degradation; lack of accessible, good quality water for both urban and rural inhabitants; and environmental pollution (39)

National Five-Year Development Plan (FYDP III): Outlines the importance of environment and natural resources as national asses which must be protected. The Strategy identifies interventions to strengthen the systems of environmental protection and sustainable use of natural resources for the benefit of present and future generations. Other areas of focus include eensuring safe use and handling of modern technologies including those for handling solid and e-waste (5).

National Environmental Action Plan (NEAP) 2013 – 2018. This plan acknowledges that increasing urbanization; rising standards of living and rapid development associated with population growth have resulted in increased solid and liquid waste generation (55)..

Financial Environment

The Income Tax Laws allows 50% Capital allowances in the first year of use for Plant and Machinery which equally applies for solid waste management tools and machinery for solid collection, transportation, treatment including recycling (29, 30)

The Income Tax Laws allows 50% Capital allowances in the first year of use for Plant and Machinery which equally applies for solid waste management tools and machinery for solid collection, transportation, treatment including recycling (29, 30)

The government may identify projects and grant special strategic investment status, if the investment capital transaction is undertaken through registered local financial and insurance institutions. This applies to solid and e-waste management as well (29, 30).

Regulatory Environment

Environmental Management (Solid Waste) Regulations, 2009: Highlights waste minimization and cleaner production principles alongside the duty to safeguard the public health and the environment from adverse effects of solid waste (25).

Environmental Management (Soil Quality Standards) Regulations, 2007: Comprises of hazardous waste management; registration and discharge permit for polluting activities. The regulation stipulates procedures for private sector entity to get a license for waste management (26).

Environmental Management (Hazardous Waste Control and Management) Regulations, 2009: Details the requirements and responsibilities for controlling and managing hazardous waste in Tanzania (27).

“Tanzania Investment Act, No. 26, 1997: Established the Tanzania Investment Centre (TIC) to promote, coordinate and
facilitate investment into Tanzania, and governs investment activities. This Act is relevant for Private Investors intending in waste management (54).”

The Recycler Ltd is a waste management company specializing in recycling and tailor-made waste solutions. The company offers a professional and comprehensive waste recycling service in Tanzania by collecting, processing and exporting recyclable material (18).

Arena Recycling Industry is a social business that collects plastic waste from beaches in Dar es Salaam and produces building materials, such as eco-bricks, paving blocks and tiles out of recycled plastic waste for construction of affordable houses, toilets and other buildings in rural areas (13).

Multinet Africa Ltd has been contracted by the Ilala Municipality to operate on a commercial basis and collected refuse collection charges (16).

Private Sector

The Recycler Ltd, Arena Recycling Industry, GreenWaste Prohouse Ltd, Oswams Waste Management Systems Ltd.

Government

Ministry of Lands and Human Settlements, Vice presidents Office, Local Government Authorities (LGAs), Tanzania Investment Centre (TIC), Tanzania Environmental Management Council (NEMC), Tanzania Bureau of Standards (TBS)

Multilaterals

World Bank, United Kingdom’s Foreign, Commonwealth and Development Office (FCDO).

Non-Profit

Habitat International, SNV Netherlands Development Organization., Habital International, Environmental Engineering and Pollution Control Organization (EEPCO), ustainability in Action (SiA), WasteAid,

Public-Private Partnership

Tanzania Public-Private Partnership Project (TPPP)

Sector & Subsector Sources

1) TanzaniaInvest.com, 2022, https://www.tanzaniainvest.com/construction/realestate and follow us on www.twitter.com/tanzaniainvest
2) United Republic of Tanzania, Ministry of Works and Transport Strategic Plan, 2021/22 – 2025/26
3) Kerbina Joseph Moyo, Women’s Access to Land in Tanzania, The Case of the Makete District, Royal Institute of Technology (KTH) Stockholm, 2017
4) African Development Bank, Tanzania Economic Outlook, 2021
5) African Development Bank, Tanzania Economic Outlook, 2021)
6) International Journal of Social Science Studies Vol. 6, No. 12; December 2018)
7) Environmental Resource Consultancy (ERC), Solid Waste Management in Urban Centers of Tanzania, Leapfrogging Towards a Circular Economy, 2016
8) International Journal of Environmental Research and Public Health, Analyzing Municipal Solid Waste Treatment Scenarios in Rapidly Urbanizing Cities in Developing Countries: The Case of Dar es Salaam, Tanzania, 2019
9) United Republic of Tanzania, the National Solid Waste Management Strategy, 2018
10) European Sustainable Solutions, Expert Mission on Integrated Solid Waste Management (ISWM) to Dar es Salaam, 2016
11) International Journal of Health Promotion and Education , Sweeping is women’s work: Employment and empowerment opportunities for women through engagement in solid waste management in Tanzania and Zambia, 2004

IOA Sources

12) http://www.arena.co.tz
13) https: www//zaidi.co.tz
14) Journal of Environmental Protection, Critical Analysis of the Challenges of Solid Waste Management Initiatives in Keko Machungwa Informal Settlement, Dar es Salaam, 2014
15) Habitat International, Appraisal of Solid Waste Collection Following Private Sector Involvement in Dar es Salaam City, Tanzania, 2005enter text)
16) Sokoine University of Agriculture, Economic Analysis of Solid Waste Management Options in Morogoro Municipality, Tanzania, 2016)
17) Habitat International, Appraisal of Solid Waste Collection Following Private Sector Involvement in Dar es Salaam City, Tanzania, 2005
18) The Recycler Limited, Company Profile, 2022
19) Amir Kingu et al: Solid Waste Management in Urban Centers of Tanzania, Leapfrogging Towards a Circular Economy, 2016
20) SNV Netherlands Development Organization, Solid waste management systems reform in Dar es Salaam’s low-income areas, 2020
21) National Human Settlement Development Policy 2000:
22) URT, National Land Policy, 1997
23) URT, The National Land Policy 2016
24) The revised National Population Policy, 2006:
25) Environmental Management (Solid Waste) Regulations, 2009:
26) Environmental Management (Soil Quality Standards) Regulations, 2007
27) Environmental Management (Hazardous Waste Control and Management) Regulations, 2009:
28)Tanzania Urban Resilience Program (TURP)
29) Tanzania Investment Guide
30) EAC Investment Guide, United Republic of Tanzania Standard Incentives for Investors
31) United Republic of Tanzania, National E-Waste Statistics Report, 2019
32) United Nations Statistics Division, 2020
33) World Health Organization, Country files for SDG 6.3.1: “Proportion of wastewater safely treated”, 2021
34) The Open University of Tanzania, Dar es Salaam City and Challenges in Solid Waste Management. The Case of Manzese and Sinza Wards
35) Nelson Mandela African Institute of Science and Technology, Management of Medical Wastes: Public Awareness and Associated Health Risks
36) IntechOpen, E-Waste Disposal Challenges and Remedies: A Tanzanian Perspective, 2011
37) Tanzania Investment Act, No. 26, 1997
38) National Environmental Action Plan (NEAP) 2013 – 2018.
39) National Environmental Action Plan (NEAP) 2013 – 2018.
40) https://www.macrotrends.net/cities/22894/dar-es-salaam/population