SwasteNavigating
SwasteNavigating sustainable recyclinggrowth: Polyco’s comprehensiveinvestment strategyEnvironmental stewardship is paramount, thus Polyco’s objective is to stand as a leader in advancing plastic recyclingand collection in South Africa with the vision of having a continental footprint in the plastic collection and recycling industry.Polyco implements an innovative mixture of investmentpackages that strategically integrates loans, grants, servicefees and incentives. Polyco’s investment strategy addresses thechallenges of packaging waste collection and recycling whilefostering collaboration across the entire value chain. This articledemonstrates how Polyco’s suite of investment strategies ensuresthat its members’ materials are collected and recycled, creating asustainable circular economy.Understanding South Africa’s EPR frameworkThe Extended Producer Responsibility (EPR) regulations wereformally enacted in 2021 and are reshaping the global landscapeof waste management. These regulations place the responsibilityon producers to manage the entire lifecycle of their products,including post-consumer stage, ensuring that identified materialsare collected and recycled. Polyco, as a Producer ResponsibilityOrganisation (PRO), plays a pivotal role in helping and workingwith its members and stakeholders to meet these obligations.With a mission to foster sustainable compliance with the EPRregulations by strategically investing in the plastic packagingvalue chain and implementing global best practices in SouthAfrica, Polyco’s investment strategy aligns seamlessly with theEPR framework while addressing the unique challenges of SouthAfrica’s waste management sector.Capital investment: loans and grants for long-term growthAt the heart of Polyco’s strategy is capital investment, includinginterest-free loans and targeted grants, aimed at strengtheningthe recycling and collection infrastructure. These funds areprimarily used for the purchase of critical equipment suchas balers, shredders as well as extruders and wash plants,ensuring that existing waste collection and recyclingbusinesses have the tools needed to scale theiroperations.26 | Service magazine
wasteSInterest-free loans come with a four-year repayment period,offering financial flexibility to established companies with provenbusiness models and experience in the waste management sector.These loans are carefully structured to avoid providing any unfaircompetitive advantage, thereby maintaining a balanced andinclusive industry environment, with a special focus on women,youth and people living with disability as per the EPR regulations.Grants play a transformative role in shaping the recyclingand collection industry, acting as a lifeline for small businessesand startups, especially in underserved and marginalisedcommunities. These invaluable funds ignite opportunity whereit’s needed most, nurturing training, education, innovation andresilience in places often overlooked. Polyco therefore addressesthe national needs to prioritise enterprise development to fosterdiversity and inclusion, creating pathways for women, youth andpersons with disabilities to thrive within the sector.But the impact doesn’t stop there. Grants also tackle some ofthe most pressing challenges in recycling and collection – likeaddressing the often-daunting task of managing difficult-torecyclematerials. They empower businesses to innovate and investin solutions that would otherwise remain out of reach, turningcomplex waste streams into opportunities.Service fees: supporting operationsPolyco complements its capital investments with service feesdesigned to sustain operational activities and incentivise thecollection of problematic materials. Service fees are paymentsmade to collection and recycling companies based on their outputof collected/recycled products sold to market. These fees aim tooffset operational costs, making it more economically feasible forcompanies to continue their vital work.There are two main types of service fees:• Operational service fees support existing infrastructure,ensuring that companies with established systems can maintaintheir operations. Although the fee is not substantial, it is providedto all plastic recyclers and collectors with the aim to make businessmore economically feasible and encourage the reporting of data.• Incentive-based service fees are specifically tailored toencourage the collection and recycling of low-value or difficultto-recyclematerials, such as thermoformed PET. By targetingthese challenging waste streams, Polyco ensures that thesematerials are diverted from landfills and reintroduced intothe circular economy value chains. This approach not onlysupports existing businesses but also aligns with EPR objectivesto increase recycling rates for all packaging materials.Driving innovation and inclusivityBeyond financial support, Polyco’s strategy prioritises inclusivityand innovation, essential elements for a thriving recycling sector.Initiatives such as Packa-Ching integrate citizens, the informalsector and formal businesses. This recognises the importance ofall stakeholders in the circular economy value chain.Polyco exemplifies how strategicfunding can drive meaningful change.By creating opportunities for historically marginalised groups,Polyco ensures that the circular economy is equitable and inclusive.Simultaneously, Polyco draws inspiration from global leaders in thecircular economy, adapting best practices to address South Africa’sunique challenges. By investing in research and development, theorganisation fosters innovation, enabling the sector to addresscomplex waste streams and improve waste management.
