Investigating Circularity for Organic Waste Management: An Exploratory Single Case Study at Averda in Cape Town

Abstract

As climate change and unsustainable waste practices present major global challenges, effective waste management in developing countries becomes critically important. In South Africa, organic waste constitutes a significant share of general waste and is often landfilled, contributing to methane emissions and serious health risks for the population. In response, the Western Cape province has introduced a landfill ban on organic waste effective from 2027. This thesis investigates how Averda, a private waste management company in Cape Town, can improve circular economy principles for handling, meaning the separation, collection, transportation, and treatment of organic waste considering this regulatory shift. The aim is to explore how waste management logistics companies operating in Cape Town, and in similar contexts, can improve circularity within the organic waste stream in a way which benefits efficiency, effectiveness and sustainability. This is done through an exploratory, single case study using an abductive approach, which maps how Averda currently handles organic waste and how this supply chain is managed, which barriers and opportunities exist and how Averda can draw inspiration from organic waste practices in Sweden.

Theoretical insights from literature and empirical data from interviews and site visits revealed key barriers and opportunities grouped under nine dimensions: (1) strategic positioning for organic waste, (2) selling organic waste services, (3) separating organic waste, (4) infrastructure and operations, (5) coordination mechanisms, (6) public data and industry language, (7) evaluating current partnerships, (8) new potential off-takers and (9) downstream integration. To address these findings, the report presents three recommendations aligned with the study’s purpose. Firstly, establish a clear sustainability strategy combined with targeted sales efforts and internal training. Secondly, implement information sharing systems for static and real-time data to strengthen supply chain coordination. Thirdly, evaluate current and future downstream partnerships. Additionally, the thesis provides insights into Cape Town’s market conditions and outlines directions for future research to expand knowledge on sustainable waste management in similar contexts.

Popular Abstract

Behind the simple act of picking up and transporting your waste lies a maze of choices, challenges and chances to embrace a circular future. Forget boring trash talk, waste management is about to get interesting.

When most of us think of recycling, we picture returning empty water bottles for a refund or sorting our egg cartons from the general trash. But did you know that your food scraps and yard clippings, what we call organic waste, can be recycled too? In Sweden, people have been required by law to separate organic waste for recycling since 2005. Now, two decades later, that idea is making its way 10,000 kilometers south, to South Africa.

In South Africa, organic waste makes up a large portion of the waste sent to landfill. When it rots, methane is released, which is a powerful greenhouse gas that increases global warming and leads to severe health issues for the local population. To tackle this, the Western Cape province will ban dumping organic waste on landfills starting 2027. So, how can waste companies get ready for this major shift? Let’s look at the economic hub of the province: Cape Town.

Currently, many businesses in Cape Town see organic waste services as a grudge purchase; you pay for it to be removed. The price for this service largely depends on where the waste goes. If it is mixed with general waste, it usually ends up in a landfill, which remains the cheapest (and least sustainable) option. If separated, it can instead be turned into compost, animal feed, or even energy, which is a lacking resource in South Africa. This would mean closing the loop in the circular economy. But making these greener options attractive and cost-competitive is easier said than done.

Even if customers are willing to separate their organic waste, the entire supply chain (from waste generators to transporters and recyclers) needs to work together. The problem is that limited infrastructure and a lack of reliable waste data create roadblocks. Education and training are also crucial, as staff need to know how to separate waste properly and businesses need to see the value in recycling beyond just being environmentally friendly: lowering costs, improving efficiency and boosting their competitive advantage.

This is where lessons from Sweden can inspire new approaches. Ideas of data-driven decision making and supportive infrastructure have boosted organic waste recycling, which South African companies can adapt to their own context. For example, by investing in digital tools that track waste flows, forming partnerships with innovative recycling facilities and by developing internal sustainability strategies that align with upcoming regulations.

To truly make this work, the entire supply chain must cooperate. By sharing information, aligning goals, and investing in training and infrastructure, waste companies can turn organic waste from a problem into a resource. In the end, South African waste companies have a chance to turn the 2027 landfill ban from a challenge into an opportunity - creating a cleaner, healthier, and more sustainable future for everyone.

• author: Ungerholm, Irma and Blanck, Vilma
• supervisor: Jennifer Mignonne De Waal
• organization: Department of Mechanical Engineering Sciences; Engineering Logistics
• course: MTTM05 20251
• year: 2025
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Organic waste management, Supply chain management, Waste logistics, Sustainable development, Landfill ban, Circular economy, Cape Town, South Africa
• other publication id: 6043
• language: English
• id: 9198338
• date added to LUP: 2025-06-17 17:09:18
• date last changed: 2025-06-17 17:09:18