Hundreds of informal scrap metal reclaimers in South Africa, including Mthokozisi Ngwenya, Lethabo Sibusiso, and Sparky Shabalala, are struggling to make a living wage due to low prices offered by scrapyards. The reclaimers, who work in areas such as Booysens, Johannesburg, and Benoni, collect scrap metal from dumpsites and sell it to scrapyards. However, the prices offered by scrapyards have decreased in recent years, making it difficult for reclaimers to make a decent living.
The Recycling Association of South Africa (RASA) has called for the suspension of the Price Preference System (PPS), which requires metal scrapyards to offer scrap at a 30% discount to local steel mills. RASA argues that the PPS has resulted in lower buying prices across the sector, affecting the livelihoods of reclaimers. The association has also proposed that the export duty on scrap should be dropped to allow free trade for the informal and formal metal recycling sector.
Nhlanhla Lucky Dladla, a reclaimer from Benoni, starts his day at 6am, walking five kilometers to the nearest dumpsite to collect scrap metal. He spends around 10 hours sorting through piles of discarded metal to recycle and sell. Dladla sells his recyclables in bulk at the end of each week, but often struggles to make a profit. He has been struggling to find decent work since 2016 and relies on the little he makes from collecting scrap metal to support his elderly parents and younger siblings.
According to Geoff Borrajeiro, RASA chairperson, the association has presented a sector assessment to Parliament's portfolio committee on trade, industry and competition, highlighting the challenges faced by the metals recycling sector. RASA estimates that the sector handles around 2.5 to three-million tonnes of scrap a year and supports over 70,000 people on formal yard payrolls, as well as an estimated 400,000 informal waste pickers.
Edward Nyoba, a reclaimer with over 10 years of experience, collects scrap metal from a municipal dumpsite in Germiston, where he has to pay R1,000 to gain access. Dau Thaisi, another reclaimer, focuses on collecting copper due to its higher resell value. He makes around R600 a week and sends money to his wife and children in the Free State. Both reclaimers have expressed frustration with the low prices offered by scrapyards and called for government intervention to prevent exploitation.
Pius Tsenang, who runs a cash-for-scrap business with his brother in Booysens, explained that the scrap business is complex, with prices determined by fluctuations in the metal markets. He argued that scrapyards also need to make a profit, but acknowledged that reclaimers often feel exploited. RASA CEO Nancy Strachan has raised concerns about the impact of policies such as the PPS and export duties on the sector, calling for a thorough investigation and the suspension of the PPS.
The Department of Trade, Industry and Competition (DTIC) has acknowledged the need for a broader industry review, with a meeting to be held soon to discuss the steel industry. Spokesperson Bongani Lukhele stated that the introduction of the export tax in August 2021 was intended to complement and strengthen the PPS, but recognized that the effectiveness of these policies needs to be assessed.
Key points
- The Recycling Association of South Africa has called for the suspension of the Price Preference System and the export duty on scrap to allow free trade for the informal and formal metal recycling sector.
- Hundreds of informal scrap metal reclaimers in South Africa are struggling to make a living wage due to low prices offered by scrapyards.
- The metals recycling sector supports an estimated 400,000 informal waste pickers and over 70,000 people on formal yard payrolls.
