This is a continuation from our last post on the $400 Billion dollar business of waste management. (If you have not read it, please click here).
The first step in the waste management value chain, is waste collection and sorting. Waste collection and sorting, could be a separate profitable business on its own, or it could be a part of part of your large waste recycling scheme.
We shall take a look at both options.
As a small investor in the waste management industry, you may decide to limit yourself to only waste collection. Private waste collection is a lucrative business though it is looked down as being a “dirty” business, but with a good model and proper planning, you will be able to stand out and brand your company.
The business has no limit, because the numbers of households are increasing yearly, and the quantity of waste generated by each household is also increasing exponentially.
You can open a tricycle waste collection service.
Depending on your capital, you can scale this to any size and at a big size, you can enter into contracts with your community, to dispose their waste.
Your pricing will depend on your business model and wealth status of the area you are operating the business.
Let’s take an average price of N500 monthly per household, you can easily cover 300 homes, this will translate to a revenue of N150,000 monthly or N1.8Million per year.
If you wish to go further into the waste recycling industry, you will need to advance to the next stage in the value chain, which is waste sorting.
Effective recycling relies on effective sorting. With proper sorting, you will get a much higher value from waste recycling. Again, depending on your capacity, there are several methods you can use for waste sorting.
The first step is to try and educate your clients to separate waste right in their household. To do this effectively, you may have to provide them with different waste containers for different waste products. This will ensure that kitchen waste is separated from other waste, and make your sorting much easier.
If you cannot do this, you will then revert to the next method, which is manual sorting.
Manual sorting is labor intensive, but will work where cheap labor is available.
With even more capital, you can mechanize the process. There are several machine available for this, and you can set up a factory dedicated to sorting waste.
Once the waste is sorted, you can easily sell each category of waste at this level. You can sell paper waste to paper recycling plants, you can sell plastic waste, which can be easily recycled. There are many electronic waste buyers both in Nigeria and other foreign buyers in Asian countries like Hong Kong, Taiwan, china, etc.
You can also decide to go ahead and recycle the sorted products yourself. It will definitely cost you more in the short term, but that is the best long term decision, because you will realize far more value from the recycled materials than if you just sold the bulk sorted waste materials at low cost. But that is still a good option if you have low capital to invest.
In part 3 of this series, we shall go further into the various recycling techniques, starting with plastic recycling. Subscribe on the top right corner of this page, so you will get the next article in your mail once it is published.
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Till next time.
To your Success
Engr Ifeanyi Okoro