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THE INFORMAL SECTOR in WASTE RECYCLING in EGYPT Report Submitted to GTZ

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THE INFORMAL SECTOR in WASTE RECYCLING in EGYPT Report Submitted to GTZ THE INFORMAL SECTOR IN WASTE RECYCLING IN EGYPT Report Submitted to GTZ MAY 2008 Submitted to GTZ by Table of Contenets ABBREVIATIONS ............................................................................................................................ 4 GLOSSARY OF EGYPTIAN TERMS .................................................................................................... 5 INTRODUCTION ............................................................................................................................ 6 METHODOLOGY ............................................................................................................................ 6 Chapter 1: Historical Descriptive Narrative of Egypt’s SWM Situation ............................................ 8 1.1 Actors in the Informal Recycling Economy ........................................................................... 8 1.1.1 The Traditional Waste Collectors (Zabbaleen) ........................................................... 8 1.1.2 Roamers (Sarriiha) .................................................................................................. 10 1.1.3 Robabekia and Saxonia Peddlers ............................................................................ 10 1.1.4 Middlemen and Intermediary Buyers/Dealers ......................................................... 10 1.1.5 Wholesale Merchants of Recoverable from Roamers ............................................... 10 1.2 Formal Actors in the Solid Waste System .................................................................... 11 1.2.1 Local Level Government ...................................................................................... 11 1.2.2 Ministries .............................................................................................................. 11 1.2.3 The Formal Private Sector....................................................................................... 13 1.2.4 Donors and Private Supporters ............................................................................... 14 1.2.5 Residents and Commercial Waste Generators ........................................................ 15 1.3 Adaptive Strategies of the Informal Recycling Sector ..................................................... 15 Chapter 2: Overview of the Institutional Framework of Informal Waste Workers .......................... 17 2.1 Informality of Shelter is linked to Informality of Livelihood ................................................ 18 2.2 ..... Business Aspects of Informality: International Contracting Threatens a Dynamic Recycling Sector ..................................................................................................................................... 20 2.2.1 Response to Markets .............................................................................................. 20 2.2.3 Ownership of Land, Sorting Space and other Assets ............................................... 20 2.2.4 Capital ................................................................................................................... 21 2.2.5 Labor and Wages ................................................................................................... 21 2.2.6 Growth in Recycling Enterprises ............................................................................. 21 2.2.7 Trading Networks .................................................................................................. 21 2.2.8 Specialized Trading Towns and Centers ................................................................. 22 2.3 Informal Sector Recyclers: Private Business Partners to Large Industry ........................... 22 2.3.1 Livelihoods, Income and Employment ..................................................................... 23 2.3.2 Exploitation of Household Waste Collectors by Middlemen ..................................... 24 The Informal Sector in Waste Recycling in Egypt 1 2.3.3 Competition for the Waste by Scavengers ............................................................... 24 2.3.4 Residents’ Displeasure ........................................................................................... 24 2.3.5 Resettlement Issues ............................................................................................... 24 2.4 Challenges Faced by Informal Sector Recyclers .............................................................. 25 2.4.1 Poor Ability to Organize ..................................................................................... 25 2.4.2 Lack of Transparency of the System ...................................................................... 25 2.4.3 Financial Constraints ............................................................................................ 26 2.4.4 Legal and Contractual Obstacles .......................................................................... 26 2.4.5 Social Issues Related to Stigma of Trade and Perception of Society at Large ................ 26 2.4.6 Need for Skills Upgrading – Training ..................................................................... 26 2.4.7 Operational Issues ................................................................................................ 26 2.4.8 Informality ............................................................................................................ 27 2.4.9 Difficulty in Acquiring and Asserting Ownership of Property ................................... 27 2.4.10 Inadequate Market Information and Market Intelligence ......................................... 27 2.5 Non-Profit Community Groups ..................................................................................... 27 2.5.1. Association of Garbage Collectors for Community Development (AGCCD) .................. 27 2.5.2. Association for the Protection of the Environment (APE) ............................................. 28 2.5.3 Spirit of Youth for Environmental Services (SoY) .......................................................... 28 2.6 Lessons Learned from the Various Institutional Actors ...................................................... 28 2.6.1 Lesson One: Recycling of Source Segregated Waste Dignifies the Trade and Generates Income ............................................................................................................... 28 2.6.2 Lesson Two: Source Segregation of Household Waste into Two Fractions (Organic and Non Organic) is Feasible ............................................................................................... 29 2.6.3 Lesson Three: The Regularity of Service and Efficiency in Recovery are Based on Inherent Incentives to Collectors Who are Recyclers: ............................................................ 32 2.6.4 Lesson Four: Motivated by Profit and armed with Market Information the Informal Sector Recovers High Levels of Industrial Waste all over Egypt ............................................. 33 2.6.5 Lesson Five: It is Possible to Institutionalize Informal Sector Models of Clean Recovery and Recycling of Institutional Waste .................................................................................... 34 2.6.6 Lesson Six: Informal Sector and Formal Private Sector Interests Converge around Brand Name Fraud, 2000 .................................................................................................... 35 Chapter 3: Integration of Informal Waste Workers in Formal Systems: Legal, Institutional and Technical Aspects ....................................................................................................................... 36 3.1 Solid Waste Management Legal Framework ....................................................................... 36 3.1.1 Other Laws Address Specific Aspects of Waste: ................................................... 36 3.1.2 Solid Waste Management Specifications Related to Recycling in law 38/67 and its Executive Regulations: ........................................................................................................ 38 The Informal Sector in Waste Recycling in Egypt 2 3.1.3 Other Laws and Regulations: .................................................................................. 39 3.1.4 Challenges Related to Law Enforcement ................................................................. 39 3.1.5 Laws Related to the Formalization & Licensing of Businesses .............................. 39 Chapter 4: Assessment of Integration Process of Informal Waste Workers ................................... 44 4.1 Awareness and Information Dissemination ........................................................................ 45 4.2 Actions towards Formalization of Businesses .................................................................. 45 4.2.1 Registration through Local Authority .......................................................................... 45 4.2.2 Recourse to Registering with the SFD ......................................................................... 46 4.2.3 Fear of Taxation ......................................................................................................... 47 4.2.4 Complexities of Formalization of Land Tenure ............................................................ 47 4.2.5 Cooperating with the Industrial Modernization Center (IMC) ....................................... 48 Chapter 5: Lessons Learned, Conclusions and Recommendations ................................................ 51 The Informal Sector in Waste Recycling
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