Starting a small recycling operation

STARTING a small recycling operation in Zimbabwe is relatively low-cost when compared to other industrial ventures.

However, it is not free — and definitely not simple.

The most basic setup — a plastic recycling unit that washes and shreds polyethylene terephthalate (PET) bottles — costs in the region of US$8 000 to US$15 000.

Most of the funds are spent on machinery. A used PET shredder and washer unit can cost between US$5 000 and US$10 000, depending on whether it is imported from China or South Africa.

A small pelletiser — needed to convert flakes into resalable plastic pellets — adds another US$2 000 to US$3 000.

Then there is the matter of premises.

A decent industrial space, even on the outskirts of Harare or Bulawayo, will set you back US$300 to US$500 a month in rent. Electricity is unreliable, so a back-up generator is essential, costing around US$1 500.

Labour is relatively cheap.

Most small recycling businesses operate with teams of five to 10 workers, often paid around US$200 to US$250 per month.

But supply chains, especially collection, are a different kettle of fish. Entrepreneurs often have to create their own network of waste pickers, paying about 10 US cents to 15 US cents per kilogramme of collected plastic. Permits and registration add another layer of complexity.

A basic company registration with the Zimbabwe Companies Registry costs about US$100, but you will also need an Environmental Management Agency (EMA) licence, which ranges between US$200 and US$500, depending on the scale of operations.

EMA will also require a waste management plan and environmental impact documentation.

Recyclers say access to finance is the biggest hurdle.

Banks remain hesitant, and most businesses rely on bootstrapped capital or diaspora remittances.

Despite the costs, the market is there.

Zimbabwe consumes over 200 million PET bottles a year, and demand for recycled plastic, especially from South African buyers, is strong.