6 years ago

South African Business 2017 edition

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South African Business is a unique guide to business and investment in South Africa. In addition to an up-to-date economic overview of the country, analyses of the main industrial sectors, plus profiles of the nine provincial economies, the 2017 edition of South African Business includes special features on key topical issues such as skills development and education, renewable energy and the REIPPPP programme, and trade with Africa.


INTERVIEW REDISA: putting waste to work Hermann Erdmann, the dynamic CEO of REDISA, is driving awareness of the value of circular economies and the massive potential for job creation. Hermann Erdmann BIOGRAPHY An entrepreneur and businessman, Hermann Erdmann has extensive experience in the manufacturing and retail sectors having served on a number of industry-related boards. Erdmann's interest in environmental sustainability, transformation and empowerment of the previously disadvantaged resulted in the establishment of REDISA, and the development of the first approved Industry Waste Management Plan. Please give a brief overview of the history and activities of REDISA. The REDISA Plan was gazetted in terms of the National Environmental Management: Waste Act, 2008, and Regulation 11(4) of the Waste Tyre Regulations, 2009. REDISA collects a waste management fee of R2.30 per kilogram of tyres manufactured or imported, paid directly to the organisation. These funds are applied according to the mandates set out in the Plan. The REDISA Plan provides government with an environmental solution at no cost to the fiscus, with its core mandates being both environmental and socio-economic upliftment through the development of both entrepreneurial and job opportunities, ultimately contributing to the economic growth of the country. The REDISA model uses the fees collected to directly fund the development of recycling industries, establishes reverse logistics networks, carries out R&D and promotes secondary interests. It will also provide producers the opportunity to reduce their costs by designing in circularity. Can you update us on progress with the Integrated Industry Waste Tyre Management Plan and new developments at REDISA over the past 12 months? A number of achievements have been made since inception, including having created over 3 000 jobs, and supporting more than 200 SMMEs. In addition to the milestones reached in the last 12 months, the REDISA Plan has also been lauded on the international stage as a particularly successful model in terms of circular economy development. At the 2015 Global Economic Symposium (GES), the REDISA Plan was presented to an international panel and was adopted by the GES as an official solutions proposal to address critical challenges being faced internationally. In addition, in January 2016, REDISA was announced as runner-up in the Circular Economy Government, Cities & Regions category of the Circular Awards. The awards were presented at a ceremony at the World Economic Forum annual meeting in Davos. SOUTH AFRICAN BUSINESS 2017 30

INTERVIEW The Circulars are the world’s premier circular economy award programme, and offer recognition to all individuals and organisations from commerce and civil society across the globe that have made a notable contribution to driving circular economy principles. R&D is a critical element of the REDISA Plan, and in 2013, REDISA signed an MOU with Nelson Mandela Metropolitan University (NMMU), which was in turn the foundation for an agreement finalised in 2014, which addressed two areas: • REDISA funds students undertaking research projects related to tyre recycling, which both contributes to knowledge in this area, and trains up people who can work in the industry. • REDISA is also using NMMU expertise to support the creation of the Product Testing Institute (PTI) which will carry out tyre testing according to SA homologation standards and international standards, and will be developing a new set of standards which will define an environmental rating for tyres. The completion of the construction of the PTI is expected within the next 18 to 24 months, with full operational capacity as a tyre homologation facility scheduled for within the next 36 months. REDISA is facilitating the establishment of the PTI that has as its main objective to test tyres and environmentally rate and certify each model of tyre. Currently, the waste management fee paid to REDISA is standardised at R2.30 per kilogram. Once an environmental rating system has been developed and linked to tyre homologation standards, REDISA will be in a position to set a new pricing structure. This will allow those tyres manufactured using better environmental standards to have a lower fee, while those tyres that are manufactured with more adverse effects on the environment will have a higher fee. Broadly, the PTI establishment process will be construction; accreditation for SA homologation; accreditation for EU/US homologation; development of the environmental rating system. What is the vision for the future of REDISA? Since beginning operations mid-2013, REDISA’s Waste into Worth concept has been successfully implemented to further the circular economy within the tyre industry and we have achieved a number of noteworthy milestones. Our strategy for this year is to continue to meet the requirements as outlined in the REDISA Plan, particularly in line with supporting the development of SMMEs and recyclers which will further drive development of the tyre recycling industry in South Africa. This development will be achieved predominantly through investment in infrastructure, business support and research into new applications for waste. 31 SOUTH AFRICAN BUSINESS 2017

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