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END OF LIFE SOLAR LAMPS RECYCLING STRATEGY DEFINITION KENYA & CAMEROON FINAL REPORT (PUBLIC VERSION) AUGUST 2014 TO TOTAL ACCESS TO SOLAR Page 1 of 62 EOL Solar Lamps Recycling Strategy Definition | Total Access to Solar Final Report TABLE OF CONTENT Table of Content 2 List of Abbreviations 4 A. Introduction 5 1. Background and Objectives of the Study 5 2. Approach 7 B. International Context 8 1. International Laws and Regulations 8 2. Case studies 9 2.1 Attero (India) 9 2.2 Orange Telecom (AMEA Countries) 10 2.3 Hewlett Packard (Kenya) 10 C. Cameroon 12 1. Country Context 12 2. E-Waste Legal and Regulatory Environment 12 3. Institutional Framework 14 4. Key Findings on Risks and Opportunities 14 5. Recommendations 15 D. Kenya 16 1. Solar Lighting Market 16 2. Overview of E-Waste Management in Kenya 20 2.1 Volumes 20 2.2 Regulatory Environment 21 3. E-Waste Market Organization 23 3.1 Users 24 3.1.1 Individual Users 24 3.1.2 Large Institutional Users 26 3.2 Repair 27 3.3 Collection 28 3.3.1 Small Scale Collectors 29 3.3.2 Mid-Scale Collectors 30 3.3.3 Large Scale Collectors 30 3.4 Processing 31 3.4.1 WEEE Centre 32 3.4.2 East African Compliant Recycling (EACR) Company 34 4. Recycling Strategy for TKL 38 4.1 Awareness 39 4.2 Collection 40 4.2.1 Total Distribution Network 42 4.2.2 Repairmen 42 4.2.3 Other Corporates 43 4.3 Processing 44 4.4 Sustainability 45 4.4.1 Collection 45 4.4.2 Processing 46 5. Key Recommendations 48 Page 2 of 62 EOL Solar Lamps Recycling Strategy Definition | Total Access to Solar Final Report Annex 1: References 50 Annex 2: List of interviewees 51 Annex 3: List of Solar Lighting Products Manufacturers and Commercial Distributors in Kenya55 Annex 4: Methodology for Lamp End Of Life Calculation 56 Annex 5: EOL Lamp Material Purchase Prices 59 Table 2: Sales growth hypothesis .................................................................................................................. 17 Table 3: E-waste generated in Kenya annually ................................................................................................ 20 Table 4: Comparative e-waste volumes and values: mobile phones and solar lamps ........................................... 21 Table 5: EACR interpretation of outstanding questions regarding the Draft E-Waste Regulations ......................... 23 Table 6: E-Waste Volume and Value Estimates based on different sales projection scenarios .............................. 44 Table 7: EACR e-waste buying prices ............................................................................................................. 46 Box 1: Punishment applicable according to Cameroon Law .............................................................................. 13 Box 2: Risks and Opportunities in Cameroon: Key Findings .............................................................................. 15 Box 3: Lamp EOL forecast model ................................................................................................................... 18 Box 4: Waste Management Legal Framework in Kenya .................................................................................... 21 Box 5: Draft E-Waste Regulations Implications for TKL .................................................................................... 22 Box 6: Recent E-Waste Awareness Raising Activities in Kenya .......................................................................... 25 Box 7: E-Waste Dismantling Activities ............................................................................................................ 30 Box 8: E-Waste Value Chain Analyses ............................................................................................................ 36 Box 9: EACR Health and Safety Policies .......................................................................................................... 37 Figure 1: Solar lighting systems sales growth in Kenya .................................................................................... 16 Figure 3: Solar lighting systems sales by channel of distribution ....................................................................... 17 Figure 5: Solar lighting products 2025 sales projections in Kenya (‘000 lamps) .................................................. 18 Figure 8: Resulting EOL lamps to be recycled (total market, based on medium growth scenario) ........................ 19 Figure 9. E-waste Chain in Kenya .................................................................................................................. 24 Figure 10: Individual Users Attitudes Towards E-Waste Recycling ..................................................................... 25 Figure 11. How do you get rid of your EOL electrical appliances? ..................................................................... 25 Figure 12. What do you do when an electric or electronic appliance stops working? ........................................... 28 Figure 13. How is your waste collected? ......................................................................................................... 28 Figure 14: Existing e-waste collection chain .................................................................................................... 28 Figure 15. WEEE Centre Market Chain ........................................................................................................... 32 Figure 16. EACR market chain ....................................................................................................................... 35 Figure 17: Summary of Model 1 Collection Chain ............................................................................................ 40 Figure 18: Summary of Model 2 Collection Chain ............................................................................................ 40 Figure 19: Summary of Model 3 Collection Chain ............................................................................................ 42 Figure 20: Summary of possible collection models........................................................................................... 43 Figure 21: S20 sub-components value (% of total S20 lamp value: US$ 0.03) ................................................... 45 Figure 22: S300 sub-components value (% of total S300 lamp value: US$ 0.19) ................................................ 45 Figure 23: S20 EOL Value Chain (US$ per lamp) ............................................................................................. 47 Figure 24: S300 EOL Value Chain (US$ per lamp) ........................................................................................... 47 Page 3 of 62 EOL Solar Lamps Recycling Strategy Definition | Total Access to Solar Final Report LIST OF ABBREVIATIONS ABL Above the Line ABS Acrylonitrile Butadiene Styrene (plastic) AMEA Africa, Middle East, Asia B2B Business to Business BAT British American Tobacco bn Billion BOP Base of the Pyramid BTL Below the Line CAGR Compounded Annual Growth Rate CCK Communications Commission of Kenya CD Compact Disc CEO Chief Executive Officer CFC Chlorofluorocarbon CFL Compact Fluorescent Lamp CFSK Computers for School Kenya CRT Cathode Ray Tube EACR East African Compliant Company EEE Electrical and Electronic Equipment EOL End Of Life EPR Extended Producer Responsibility EU European Union FY Financial Year (US) GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GOGLA Global Off Grid Lighting Association GPS Global Positioning System GSMA GSM Association HP Hewlett Packard HQ Headquarters ICT Information and Communication Technology IFC International Finance Corporation IT Information Technology KEREA Kenya Renewable Energy Association Kg Kilogram KSh Kenyan Shilling LPG Liquefied Petroleum Gas m Million MEMR Ministry of Environment and Mineral Resources (Kenya) MINEP Ministry of Environment Nature Conservation and Sustainable Development (Cameroon) MFIs Micro Finance Institutions MoU Memorandum of Understanding MT Metric Ton NEMA National Environment Management Authority (Kenya) NGO Non-Governmental Organization PC Personal Computer PP Polypropylene (plastic) PPP Public-Private Partnership PS Polystyrene (plastic) R&D Research and Development RWA Resident Welfare Association SACCO Savings and Credit Cooperative Societies Solitech Solidarité Technologique TATS Total Access To Solar TKL Total Kenya Limited UK United Kingdom UNDP United Nations Development Programme UNEP United Nations Environment Program UNIDO United Nations Industrial Development Organization US$ United States Dollar WEEE Waste Electrical and Electronic Equipment XAF Central African CFA Franc Page 4 of 62 EOL Solar Lamps Recycling Strategy Definition | Total Access to Solar Final Report A. INTRODUCTION 1. BACKGROUND AND OBJECTIVES OF THE STUDY Total Access To Solar (TATS) and GIZ have established a public-private partnership (PPP), Improving Access to Solar Energy Through a Base-of-the-Pyramid (BOP) Approach, with an aim to improve access to solar energy for the poor communities in Cameroon and Kenya by distributing solar lighting products locally. This initiative has adopted a market-based approach, working with all stakeholders along the market chain, from microbusinesses that sell solar lighting equipment to end users. Targeted solar resellers are trained to operate along the full length of the supply chain, from distribution to installation and maintenance, on technical and business skills (including business development, accounting and financial management, as well as customer