Petco Empowerment Fund strengthens SMMEs in South Africa’s recycling value chain

SOUTH AFRICA – The Petco Empowerment Fund, created by one of South Africa’s longest-standing producer responsibility organizations, is beginning to make tangible strides in boosting small, medium and micro enterprises (SMMEs) within the country’s recycling sector.

Financed by contributions from Petco producer members and partners, the fund aims to provide accessible finance and technical support to B-BBEE Level 1 SMMEs, enabling them to expand their operations and move up the recycling value chain.

According to Petco CEO Telly Chauke, the initiative is about more than just providing grants: it’s about driving systemic growth.

“We should be creating a pipeline of growth by supporting players at every level, from waste picker projects to emerging industrialists, to ensure a stronger, more inclusive recycling landscape in South Africa,” she said.

One of the first beneficiaries is Why Waste, a 100% black-owned company based in Ladysmith, KwaZulu-Natal.

Operating for nearly three decades, the company employs 59 staff and works with over 230 independent waste collectors, recovering more than 6,000 tonnes of recyclables annually.

With a R1.3 million Petco grant, Why Waste purchased a 4-tonne truck, double-axle trailer, and mobile baling machine, equipment that has transformed its capacity.

“Before this, our operations were limited by logistics and manual handling,” said Razia Patel, head of finance and marketing at Why Waste. “Now, we can process more recyclables, reduce costs, and expand into underserved communities.”

The mobile baler enables compaction of recyclables at source, lowering transportation costs and improving efficiency.

The new logistics infrastructure has also allowed Why Waste to establish additional collection routes, especially in rural and semi-urban areas often neglected in recycling programs.

Community and environmental impact

Beyond operational growth, Why Waste has used the grant to support local livelihoods by supplying bags to waste pickers and providing consistent buyback opportunities.

The company’s engagement with schools and community groups has strengthened local recycling culture, earning it the 2023 Petco Award for Environmental and Education Awareness.

Petco’s GM for recycling and collections, Samu Mkhize, noted that Why Waste was chosen for its strong alignment with Petco’s priorities of transformation, enterprise development, and sustainability.

The company projects to increase its collection volumes by up to 25%, preventing an additional 1,500 tonnes of packaging waste from reaching landfills each year.

“This support is not just a boost in productivity, but a vote of confidence in our mission to grow responsibly while strengthening South Africa’s green economy,” Patel added.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE