Local black empowerment company African Sky is hoping to turn e-waste into a profitable venture as it enters the lucrative electronic recycling arena.
African Sky has teamed up with global electronics recycling company Citiraya in a partnership that will see local e-waste sent to Singapore for recycling, says Citiraya marketing executive Gordon Cripps.
The Far East is the ideal destination for recycling because this is where most electronic manufacturing takes place, explains Cripps, adding that this is the first such venture in SA.
Profit from the venture will come through the melting down and selling of precious metals from the e-waste. "We also recycle other components in any way we can, and produce anything from industrial carpet tiles to ornaments," Cripps says.
Between 315 million and 500 million PCs will be scrapped in the US alone in the next five years, and electronic recycling is now a billion dollar industry, says African Sky CEO Allan Werth.
"In SA, we are producing millions of tons of electronic waste every year, and only 2% of it is properly recycled. Companies don`t really know what to do with it, and most of it just goes straight to the landfill. Electronic waste contains toxic materials, and if it gets into the water table, it could be very difficult to get rid of."
Impending legislation that will require electronic equipment to be disposed of in an environmentally friendly manner should provide further incentive for local companies to make use of e-waste disposal services, adds Werth.
As many PCs contain valuable intellectual property, Werth says they are destroyed in a secure environment.
African Sky, which says it is the first ISO 12001 and ISO 9000 compliant electronic waste company locally, is 52% owned by black empowerment investment company Vuthela Resources. Vuthela shareholder and African Sky director Johnny Clegg says shares in African Sky will be diluted among unnamed black partners.
"It is essential to help BEE companies, and provide them with capital upfront so they can enjoy the profits sooner rather than later."
The venture has received the full backing of government, says Lionel October, Department of Trade and Industry deputy director-general of the enterprise and industry development division. "Environmental standards are becoming a key driver of economic development around the world, and so we welcome this kind of partnership.
"We have been trying to champion environmental protection for some time, and the challenge is now on us as government to promote the regulation of e-waste."
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