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Turning Trash into Cash: Investing in Waste Management Companies

by | 30-10-2014 18:05



2011 UN report on urbanization indicates that half of the world population lives in cities. Like many other developing countries across the world, Kenya population is undergoing rapid urbanization. As the livelihoods of people improve, the more they tend to waste .Increase in income is directly proportional to increase in waste. It is expected that half of Africa's population will live in cities by year 2030. Management of solid waste in Kenya has faced several challenges resulting to clogged drainage and sewers, emergence of waterborne diseases like typhoid and cholera, respiratory diseases from open burning of the garbage to malaria.

Following introduction of Integrated Solid Waste Management (ISWM) also called sustainable solid waste management concept by UNEP and JICA in partnership with Nairobi City County of dealing with waste, there has been lot of interest in waste recycling business start-up ventures. Traditionally waste management was left to local authorities i.e. county governments but the scenario is changing with the realization that local authorities on their own are not capable of managing waste. Like other cities in the world, solid waste management is an expensive venture gobbling up to 30 to 50% of revenues (UNEP). This is unsustainable and Kenyan cities and towns end up with endless heaps of garbage dotting the landscape.

Embracing the 3R, Reduce, Recover and Recycle concept of solid waste management has potential in creating employment especially among the youths who comprise the majority in developing countries .Recently several individuals and youth community based organizations in Kenya who have started plastics recycling and composting projects have won international awards from their role in environmental sustainability and climate change mitigation . Ecopost and Green Africa International Limited in Kenya have offered sustainable business model with ecological benefit of removing plastic bottles and polythenes from the environment. The byproducts are plastic posts which are later used for fencing, construction, amongst others. Thus reducing deforestation and mitigating climate change.

Sanergy Limited also in Kenya is an award-winning social venture that is trying to convert the problem of human waste into valuable products. Since its launch in 2011, over 3500 tons of human waste has been processed to organic fertilizer and generation of power. Trash might not seem like a terribly exciting investment but Investing in green business such as waste management is projected to grow over the next decades.