Buyback centres in Cape Town: the key integration point between formal and informal sectors in the waste economy of the Western Cape

Abstract

South Africa’s waste diversion rate from the landfills is low (11%) and leaves room for growth in the South African recycling industry to contribute to job creation, poverty alleviation, enterprise development and economic growth. The waste economy’s value chain is multi-layered with buyback centres (BBCs) as the point of convergence for informal and formal sector actors in the recycling economy. BBCs connect the informal sector actors of the recycling economy with the more formal activities. Despite this role, BBCs have not been a focus of research. This study investigated the facilitating role of BBCs as the link between the formal and informal sectors of the waste economy—using the City of Cape Town as a case study. A concurrent mixed-method design was chosen for this study. Fifty-three BBCs were surveyed in 2018. These BBCs employed 971 people and accepted material from approximately 5500 collectors, including an estimated 3000 waste pickers—supporting as many as 15,000 people. The BBCs collectively sold 17,100 tonnes recyclables in an average month, constituting about R25.7 million in material value and a monthly landfill airspace saving of 41,800 m3. BBCs facilitate informal livelihoods and contribute directly and indirectly to the formal waste economy. Two key areas for research were identified: the evolution and business models of BBCs and a holistic analysis of the waste management system and policies of cities such as Cape Town for policies to be more supportive and inclusive of BBCs.