Empowerment fund boost for SA’s circular economy

An empowerment fund created by one of South Africa’s longest-standing

producer responsibility organisations is starting to deliver on its mandate

to bolster small to medium-sized businesses and move them up the

collection and recycling value chain.

The Petco Empowerment Fund, which is funded by contributions from Petco’s

producer members and other benefactors, provides accessible finance and support

to B-BBEE Level 1 SMMEs to help them increase their operational capacity, thereby

contributing to their increased ability to collect recyclable materials.

Petco chief executive officer Telly Chauke said building a sustainable circular

economy requires a vision that goes beyond capacitating players to remain where

they are in the collection and recycling value chain, and instead empowers them to

grow in scale and impact.

“We should be creating a pipeline of growth by providing support at all levels – from

waste picker projects right up to emerging industrialists – to assist them to participate

meaningfully in the value chain, and ensure a stronger, more inclusive recycling

landscape in South Africa,” said Chauke.

“Our Petco Empowerment Fund is the result of streamlining and repositioning our

development investment strategy to expand beyond our existing, day-to-day support

for projects. It allows us to create upward mobility and scale up our developmental impact.

Chauke said a number of pre-qualifying SMMEs had already undergone Petco’s

rigorous application and selection process, demonstrating their improved capacity,

skills and economic viability.

One of the first grant recipients, Why Waste in Ladysmith, KwaZulu-Natal, is already

creating a positive economic ripple effect in the surrounding communities through the

buying and selling of post-consumer recyclable packaging.

The 100% black-owned business, which has been operating in the sector for almost

30 years, currently employs 59 community members and trades with a network of

around 230 independent waste collectors, collecting over 6000 tonnes of recyclable

materials annually.

Why Waste used the bulk of the R1.3 million grant funding to purchase capital

equipment, recently taking delivery of a four-ton truck, double-axle trailer and mobile

baling machine.

Speaking at the handover ceremony, Why Waste’s head of finance and marketing,

Razia Patel, described the grant and equipment as “transformational”.

“Prior to this, our collections and baling processes were limited by logistics and

manual handling constraints. With this new equipment, we are now able to process

more recyclables, reduce transport costs, and improve turnaround times,” Patel said.

She said the equipment had already enabled Why Waste to extend its reach into

under-served areas and increase collection frequencies.

“The mobile baler allows us to compact recyclables at source, reducing

transportation bulk and enabling us to collect higher volumes more cost-effectively.

With the additional truck and trailer, we have also been able to establish new

collection routes, particularly in rural and semi-urban areas where packaging waste

often goes uncollected. As a result, we’ve seen a significant increase in volumes

collected.”

More importantly, Patel said, the grant had already had a direct and positive effect

on the communities they serve.

“We’ve been able to onboard more local waste pickers by supplying them with bags

and providing consistent buy-back support. Our operations now support more

livelihoods through direct and indirect employment, including drivers, loaders, and

baling staff.”

Additionally, she said, the increased throughput had allowed Why Waste to engage

more local businesses and SMMEs in the recycling value chain, creating a more

inclusive and sustainable ecosystem.

“The improved logistics and processing capability also mean we can offer more

reliable services to schools, shopping centres, and community collection points,

helping embed a culture of recycling in the areas we serve.”

It is Why Waste’s on-going community engagement efforts, particularly among local

schools, that saw the business earn the 2023 Petco Award in the Environmental and

Education Awareness Initiative category.

Petco’s general manager for recycling and collections, Samu Mkhize, said the

company was selected for the grant based on its alignment with Petco’s core funding

priorities of transformation, enterprise development, impact and growth potential, as

well as sustainability and localisation.

Aside from the socio-economic benefits, Why Waste projects to grow its collection

volumes by 20 to 25%, which will see an additional 1000 to 1500 tonnes of

recyclable packaging kept out of the environment or landfill each year.

“Why Waste has demonstrated its commitment to inclusive employment practices,

has a history of community empowerment as well as proven operational capacity,

with high – and growing – recycling volumes that are stimulating the local green

economy,” said Mkhize.

Patel added that it was gratifying to have their efforts acknowledged and supported.

“This support is deeply meaningful to us – not just as a boost in productivity, but as a

vote of confidence in our mission to drive sustainable waste management in South

Africa. It empowers us to grow responsibly while strengthening our ability to divert

valuable materials from landfill.”

Businesses and potential contributors looking to spend their CSI funding allocation

through this fund can email corpgov@petco.co.za – Section 18A certificate can be

issued for all donations received.

[ends]

Special delivery: Petco CEO Telly Chauke (front, third from left) celebrates the

delivery of a new truck and trailer with the Why Waste team. The recycling buy-back

centre, headed by Aslam Patel (second from right), will now be able to collect much

more recyclable packaging following a grant from the Petco Empowerment Fund.

Working together: One of the Petco Empowerment Fund’s first grant recipients, Why

Waste in Ladysmith, KwaZulu-Natal, is excited to use its new truck and trailer to

create a positive economic impact on surrounding communities by growing the

buying and selling of recyclable packaging. Here the Petco and Why Waste teams

share the joy at the official handover ceremony.

Media contact (office hours):

Leonie Selvan | leonie@goodnewslab.co.za | 066 420 4287

Media contact (after hours):

Brian Hayward | brian@goodnewslab.co.za | 084 250 2932

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