The promulgation of environment-related legislation and a general business trend towards sustainable development has boosted the need for creativity within the waste management sector. Recognising this, ChemCity, Sasol’s business incubator, is providing entrepreneurs with the necessary business development support to gain entry into and sustain themselves in this emerging industry.

Reshan Sewnarain, ChemCity Business Support Team Manager, reveals that current local and global challenges are additionally propelling this business sector forward, giving entrepreneurs greater opportunities than ever.

The recently promulgated National Environmental Management Waste Act will transform the way waste is managed in South Africa and create a “green space” for new business. The obligations highlighted for businesses in the Act have simultaneously created various entrepreneurial opportunities in this area, especially with regard to waste re-use and re-cycling and reducing the volumes of waste going to landfill. From a ChemCity perspective we have seen that where creative ideas in the entrepreneurial arena are lacking, these are more than compensated for by developing original business models based on the use of existing technologies. The ChemCity-assisted Apple Green Holdings for example, has revolutionised waste recycling and waste product regeneration in the municipal and private sectors by developing and packaging the processes involved into a franchise operation. The innovative strategy behind the Apple Green business model involves not only providing complete waste management solutions to companies, but simultaneously empowering other small to medium enterprises (SMEs) who are contracted to provide the services directly to the clients. In this way Apple Green delivers its services by empowering a third party, thereby developing and supporting the entrepreneurial and SME element in the sector.

The Waste Act creates just one of a number of “greener” business catalysts however. The current global economic crisis has also resulted in companies looking for efficiency improvements. While the transition to becoming more sustainable companies is commonly misperceived to be expensive in the short-term, more companies are now adopting a long-term view – realising that if they make necessary changes now, they can potentially save money and contribute to their sustainability. They are also seeing the benefit of more cost-effective alternatives offered by entrepreneurs and SMEs (small and medium enterprises). Services that offer businesses money in exchange for their waste for instance provide mutually beneficial solutions to both parties.

Business is also looking at “green” issues in the context of more environmentally-aware clients and consumers. This means that the most powerful catalyst towards implementing environmentally sustainable solutions in some instances is driven by increased awareness and expectations from a company’s consumers. Cleaner business practices that additionally empower and develop sustainable SMEs in local communities can provide powerful marketing opportunities, and encourage potential clients to support a business or brand.

ChemCity’s response to these trends has been close collaboration with entrepreneurs to develop viable and sustainable businesses that help cater for companies’ new waste management needs. The opportunities presented in the “greening” space require a thorough assessment of the suitability of the technologies employed - on the part of entrepreneurs - in order to ensure sustained viability. With this in mind, preferences among SMEs have shown waste beneficiation to be extremely popular – resulting in our development of a specific strategy for this industry. The strategy sets out a framework for waste management focusing on beneficiating waste into energy and on specific sectors that require these services i.e. the production of compost from organic waste and livestock manure. Guided by direction provided in government gazettes and other public policies, ChemCity is constantly investigating new avenues in which entrepreneurs in this sector can be assisted and supported.

While the catalysts for greening business are numerous and varied, their impact has the potential to provide exciting opportunities for both business and entrepreneurs in South Africa. As environmental consciousness becomes a business imperative and as legislation tightens, the corporate community will take greater responsibility for its role in ensuring sustainable business practices while opening up opportunities for the entrepreneurial sector: a win-win scenario for sustainable job creation and the environment.

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