The Economics of Recycling in South Africa: What’s Working, What’s Not

Recycling in South Africa has come a long way in the past two decades. From informal collectors hauling trolleys of cardboard through city streets to large-scale operations processing tons of scrap metal, the country has built a diverse recycling sector. But while some areas are booming, others still face serious inefficiencies. 

If you’re in manufacturing, retail, or any business producing waste, understanding the economics of recycling can help you make smarter, more sustainable decisions.

What’s Working in Recycling

Scrap Metal Recycling: The Local Success Story

South Africa’s scrap metal recycling industry is a consistent performer. Ferrous and non-ferrous metals like steel, aluminum, and copper hold significant value on the global commodities market. This sector has attracted formal investments, supported by local demand from steel mills and foundries.

According to the Department of Trade, Industry and Competition, metal recycling contributes billions of rands to the economy every year and supports thousands of jobs. Because of the value of scrap metal, it has become a highly incentivized market, especially for the informal sector, which collects and sells valuable waste to processors.

Why Scrap Metal Recycling Works:

• Strong demand from both local and international buyers

• Established collection and trading networks

• Competitive pricing and consistent cash flow

• Integration between informal and formal players

PET Plastic Recycling: A Model for Circularity

Plastic often gets a bad rap, but PET (polyethylene terephthalate), the material used in beverage bottles, is a standout when it comes to recycling. Thanks to organisations like PETCO, South Africa has developed one of the most successful PET recycling models in the developing world.

Why PET Recycling works:

• High recyclability and strong end-market demand

• Industry-funded Extended Producer Responsibility schemes

• Active partnerships with collectors and recyclers

• Strong consumer awareness

Paper and Cardboard Recycling

South Africa also performs well in paper and cardboard recycling, with collection rates often exceeding 60 percent. Large-scale paper mills and packaging companies drive demand, while schools, offices and retailers contribute significant volumes.

Collection is relatively easy, and the recycling process uses less energy than creating new pulp from raw materials. This makes it economically viable in most regions.

What’s Not Working (Yet)

Multi-layer Plastics and Flexible Packaging

Soft plastics like chip packets, laminated sachets and, cling wrap present one of the biggest challenges. These materials are difficult to recycle because they contain multiple layers of plastic or mixed materials such as foil and film. There’s limited infrastructure to process them and little resale value.

Why it struggles:

• Low economic value

• Complex and costly processing requirements

• Lack of separation at source

• Minimal consumer understanding

E-Waste Recycling: Underdeveloped and Underregulated

E-waste, or electronic waste, is the fastest-growing waste stream in South Africa. The country generates more than 360,000 tonnes of e-waste per year, yet less than 15 percent is properly collected and recycled. 

Challenges in e-waste:

• Expensive and technical processing

• Limited public education about e-waste

• Poor compliance and monitoring

• Illegal dumping and hoarding

• Lack of recycling and processing infrastructure

Organic Waste and Composting

South Africa generates millions of tonnes of organic waste from food scraps, garden cuttings, and other biodegradable material. Unfortunately, very little of it is diverted to composting or biogas production. Most of it ends up in landfills, where it produces methane.

The technology and demand for large-scale composting exist, but municipalities often lack the resources or systems to collect and manage organic waste efficiently.

Where to From Here?

The South African recycling landscape offers both strong opportunities and clear gaps. For recycling to become more economically viable across all materials, several actions are needed:

Improve separation at source - Recycling only works when materials are properly sorted. Households, businesses, and retailers need access to separate bins and reliable collection services.

Support informal collectors - The informal recycling economy plays a critical role. Formalizing partnerships, offering training, and ensuring fair pricing can uplift livelihoods while improving recycling outcomes.

Invest in infrastructure and innovation - Investing in local solutions, such as waste-to-energy projects, can help close the gap between recycling potential and actual performance.

Conclusion

Recycling in South Africa is a work in progress, but the foundation is promising. Sectors like metal and PET plastic show that when infrastructure and collaboration come together, recycling can succeed. 

For businesses and policymakers alike, understanding the economics of recycling is key to identifying where value can be recovered, not just waste reduced.

Contact Antel Solutions to find out how you can start supporting the recycling industry through reverse logistics.