Page 26 from: September 2007

Recycling International • September 2007 26

Republic of South Africa
at a glance

Population: 44 million
Ethnic groups: black African 79%, white 9.6%,

coloured 8.9% and Indians/Asians 2.5%.
Capital: Pretoria.
President: Thabo Mbeki since June 16 1999.
Economy: South Africa is a middle-income, emerg-

ing market with an abundant supply of natural
resources; well-developed financial, legal, communi-
cations, energy and transport sectors; a stock
exchange that ranks among the 10 largest in the
world; and a modern infrastructure supporting an
efficient distribution of goods to major urban centres
throughout the region. However, growth has not been
strong enough to lower South Africa’s high unemploy-
ment rate, and daunting economic problems remain
from the apartheid era – especially poverty and lack of

S O U T H A F R I C A

South Africa is a country of contrasts. Rich and
poor, urban sprawl and open countryside, moun-
tains and coastal regions, different racial groups –
all co-exist in a country the size of Europe.

With a growth rate of 5% in 2006, the country’s
economy is doing well. However, South Africa is fac-
ing many problems. One of the biggest is its unem-
ployment rate which, according to 2006 government
statistics, stands at around 25% although more
realistic estimates put it closer to 50%.

As the rich get richer and the poor get poorer, with
only a small middle class as a buffer between the two,
it is no surprise that serious crimes – including mur-
ders, car-jackings and robberies – increased for the
first time last year since apartheid came to an end in
1994; according to police statistics, the number of
serious offences climbed 2.4% to 19 202. Business
people consider these statistics to be the greatest dis-
incentive to invest in post-apartheid South Africa.

Domestic markets first

In line with the country’s thriving economy, South
Africa’s metals recycling business is performing very
well. There are an estimated 800 scrap-related com-
panies, of which 87 are members of the South African
Metals Association. Seven of the largest metal recy-
clers can be found in Gauteng, the province of which
Johannesburg is the capital and where some 70% of
the country’s industrial activity is focused; three major
metal recyclers can be found around Durban while
another one – SA Metal – is headquartered in Cape
Province. Statistics suggest that around 70 000 to 80
000 tonnes of ferrous scrap is available each month.

Most of the metals recyclers I visited during my
stay in South Africa subscribed to a policy of serving
their domestic customers first while exporting their
surplus, mainly to Asia and Europe.

Transport problems

‘Scrap is cheap but transport makes it expensive,’
one of the metal recyclers told me. The long dis-

In June, I took a three-week trip to South Africa where a holiday was

combined with visits to a number of metals recycling companies.

I was able to enjoy great food and wines, meet friendly people, and

view some stunning landscapes and wildlife. But above all, I was

given a very valuable insight into the country’s recycling culture.

By Manfred Beck tances and accompanying transport costs are one of
the industry’s biggest problems, not least because
the Johannesburg region in which most of the scrap
is generated is far away from the ports.

As Martin van Wijngaarden of Reclam put it: ‘For
ferrous, there is a clear distinction between the
coastal and the inland markets. As most steel mills
are located inland, especially around Johannesburg,
all ferrous scrap is going to our customers over there.
Ferrous from the coastal regions is often exported
because the overseas freight rates are cheaper than
transport by truck to the inland steel mills.’

The main export destination for South Africa’s fer-
rous is South East Asia, while non-ferrous metals are
shipped principally to South East Asia and Europe.

Wealth from ‘waste’

Most ‘waste’ in South Africa is landfilled because
the country has no incineration plants. All landfills
are state-owned although companies can lease them.

Snapshot of metals recycling in So

The scrap yard of UCG Recycling in Krugersdorp.

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