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An overview of Egypt's waste management landscape

Despite challenges, the market potential for waste management and recycling in Egypt is over $5 billion annually, say Nehal Muhamed and Irene Boghdadi of Chemonics Egypt. They are positive that the country's waste management sector is steadily evolving into a sustainable industry.


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Waste Management
 
May 28 2024
 
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Egypt produces around 100 million tonnes of waste annually, with agricultural, drainage, canal, and municipal waste making up the majority, as reported by the National Solid Waste Management Program (NSWMP) in 2023. Urban areas see waste collection rates of up to 85%, while rural areas lag behind at 35%. Despite this, a substantial portion of municipal waste, estimated at 80 to 88%, ends up in open dumpsites, with only about 7% directed to landfills. This discrepancy highlights both the challenges and opportunities in Egypt's waste management and recycling sector, say Nehal Muhamed, Senior Chemical Engineer, and Irene Boghdadi, Head of the Micro-, Small-, and Medium- Enterprise Support Services, Eco-industrial Department, Chemonics Egypt. Here is an excerpt from their interview with Waste & Recycling magazine...

What are the major challenges the municipalities/local bodies and private waste management service providers face today in managing waste in Egypt?  How to address them

In Egypt, municipalities, private waste management providers, and other stakeholders face significant challenges in managing waste efficiently due to the complexity and scale of the waste generation and management landscape. Among the major hurdles are:

Improperly Handled Organic Material: Organic waste, accounting for 50-60% of dumpsite waste, complicates municipal solid waste management due to its biodegradability, low calorific value, and moisture-rich composition, making it difficult to segregate and recycle, particularly affecting biogas and compost production processes.
Information Inadequacy and Asymmetry: There's a notable absence of comprehensive and accurate waste data, which is critical for effective management, planning, and investment. This lack of data affects the development of strategies and solutions for waste management.
Partial Integration of the Informal Sector: The informal sector's contributions to waste collection and recycling are significant, yet their full integration into formal systems is hindered by numerous challenges including lack of formal recognition, inadequate training, and restricted access to resources.
Regulatory and Coordination Challenges: The optimisation of waste management processes can be further enhanced through the refinement of regulatory frameworks, the consistent application and awareness creation of policies, and the strengthening of stakeholder coordination efforts. These improvements will facilitate the realization of efficiencies and opportunities within the sector. 

To address these challenges, solutions could include:

1. Promotion of source reduction and segregation of food waste, alongside the investment promotion for the valourisation of organic waste through waste-to-energy and waste-to-value solutions such as circular proteins.
2. Developing and publishing accessible market studies, establishing a dynamic national waste information system, and fostering platforms for waste exchange.
3. Strengthening the capacities of workers in the informal sector and fostering business-to-business market linkages as well as financing opportunities to encourage formalisation and integration.
Enhancing regulatory clarity, improving stakeholder coordination through collaborative platforms, and establishing clear standards to foster innovation and efficiency in waste management.

Despite these challenges, Egypt has made significant strides towards sustainability and efficient waste management, driven by ambitious targets and initiatives aimed at reducing pollution and GHG emissions, promoting sustainable energy including waste-to-energy solutions, and incentivising the circular economy.

Does the Sustainable Development Strategy: Egypt Vision 2030 hold promise for a better waste management in the country? 

Egypt Vision 2030 offers a promising pathway to revolutionise waste management through a comprehensive and sustainable approach. By setting ambitious targets for enhancing waste management efficiency, increasing recycling, and promoting waste reduction awareness, the strategy outlines a clear framework for systemic change. It emphasises policy support, technological investment, private sector participation, and public education, alongside establishing measurable indicators for success. This holistic strategy demonstrates Egypt's commitment to environmental sustainability, economic growth, and societal well-being, signaling a favourable environment for investors. While the vision provides a solid foundation for future initiatives, recognising areas for roadmap enhancement and implementation strengthening remains crucial for achieving its ambitious objectives. The strategy's execution faces challenges such as regulatory clarity, skilled labour availability, and recycling efficiency, highlighting the need for continued focus on overcoming these barriers to realise the full potential of a circular economy in Egypt.

What are the legislations and regulations that support (or hinder) waste management? 

Egypt's waste management strategy is reinforced by key legislation, notably the Waste Management Law of 2020 and the formation of the Waste Management Regulatory Authority (WMRA), signaling a strong commitment to modernising waste disposal and recycling practices. This law aims to integrate the private sector and informal waste collectors into the formal economy, offering incentives for compliance and formalisation. It represents a significant leap towards sustainable waste management by regulating waste operations and fostering private investment and international cooperation. 

Despite these advancements, the implementation of these laws faces challenges, including the need for a more comprehensive regulatory framework for specific waste types and recycling activities. Issues such as market trust, product quality from recycled materials, labour skill shortages, and limited access to recycling technology training are notable barriers. Additionally, the focus on low value-added recycling activities, the lack of industry associations, and standardisation for recycled products further complicate the sector's development.

However, these challenges also present opportunities for Egypt to lead in innovative waste management solutions. By addressing these issues, Egypt can enhance its recycling sector's efficiency and profitability, contributing to economic growth and sustainability. The strategy's success hinges on overcoming these hurdles, which will require concerted efforts from all stakeholders involved.

Tell us about Egypt's efforts in technological and infrastructure investment for efficient waste management. 

Egypt is advancing its waste management capabilities through significant investments in technology and infrastructure, focusing on waste-to-energy (WtE) initiatives and smart infrastructure to enhance efficiency and sustainability. 

The government's strategy includes leveraging WtE projects to process 4.2 million tonnes of waste, generating up to 300 megawatts (MW) of electricity by 2025 (AmCham, 2022). This goal is underscored by projects like the completion of two plants by the Egyptian Arab British Company for Dynamic Industries (ABD) in Abu Khreita, capable of processing 2,800 tonnes of solid waste daily to produce 123 MW of electricity every hour, and the establishment of Giza's first solid waste-to-energy facility, a $120 million investment projected to process 1,200 tonnes of waste daily in the Abu Rawash industrial zone, in collaboration with the Giza Governorate, MOMP, Green Tech Egypt, and OAK Holding. International collaborations are also key, with projects such as Saudi Arabia’s FAS Energy planning a $500 million investment for a 100 MW plant in Tenth of Ramadan City, and a partnership between Belgium’s Besix, Orascom Construction, and the New Urban Communities Authority (NUCA) for a West Cairo project. 

Egypt is enhancing its waste management through significant projects, including a $225 million WtE facility by South Korea's GKC in Beheira, and its first state-owned WtE plant in Fayoum designed to generate electricity from waste. Additionally, a $3 billion waste-to-hydrogen plant in the Suez Canal Economic Zone and a planned biorefinery in Fayoum highlight Egypt's commitment to sustainable energy and carbon emission reduction.

In parallel, Egypt is enhancing its waste management through smart infrastructure advancements, like the Egypt Climate and Environmental Investment Platform launched by Egypt's Environment Minister Yasmine Fouad. The platform serves as a comprehensive source of market data, climate, and environmental studies, as well as information about green financial facilities provided by leading Egyptian and international financial institutions for climate and environmental investments in Egypt. It serves as an online gateway for business leaders, developers, financiers, investors, and supporting institutions, offering preliminary economic feasibility studies and promising investment opportunities in waste management, sustainable energy, eco-tourism, bio-based industries, agriculture, and food production. This initiative is part of a broader effort to optimise waste management processes and encourage investment in innovative technologies. 

These comprehensive efforts not only aim to address Egypt’s waste management challenges but also to achieve environmental sustainability and energy self-sufficiency, setting a benchmark for global practices in waste management and circular economy approaches.

Positive trend 

Egypt has launched significant initiatives in the past decade, driven by ambitious goals. The Egyptian government aims to halve solid and sanitary waste pollution by 2030, aligning with its shift towards a circular economy (Afrik21, 2022). Additionally, the "Waste 50 by 2050" initiative, unveiled at COP27, seeks to cut the African continent's waste output by half by 2050, highlighting Egypt's commitment to environmental sustainability and waste management solutions (Egypt Today, 2022). In its push for energy diversification, Egypt has targeted renewable energy to constitute 42% of its energy mix by 2035 (IRENA, 2018), supporting this goal with a Feed-in Tariff system to facilitate the adoption of WtE technologies.

Chemonics Egypt has spent over three decades identifying and leveraging investment opportunities within Egypt and the MENA region. Its research indicates that the market potential for waste management and recycling in Egypt is over $5 billion annually, with the investment requirement surpassing $6 billion in 2023. Through numerous projects over the last decade with various national and international partners, including with the Egyptian Ministry of Environment, the Ministry of Trade and Industry, United Nations Industrial Development Organization (UNIDO), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), we have observed how the private sector, including startups, SMEs, and investors, has tapped into the waste management sector, showcasing that strategic business models can lead to successful ventures and contribute to the sector's growth. These efforts have not only resulted in rapid growth and high returns for investors but have also proved the viability of shifting significant waste volumes from harmful disposal methods to productive market contributions. We believe that the waste management sector is steadily evolving into a sustainable industry.