A recent collaborative international research initiative has unveiled significant findings. This study assesses the feasibility of a customized Deposit Return System (DRS) for single-use food and drink packaging, specifically designed to cater to South Africa’s unique requirements.
The report emphasizes that implementing such a system could dramatically improve collection rates for beverage containers, especially plastic and glass bottles.
Conducted by the University of the Western Cape (UWC) in partnership with Eunomia Research and Consulting Ltd., this investigation delves into the feasibility, costs, and consequences of a mandatory single-use beverage DRS tailored for South Africa.
Co-funded by the Norwegian Embassy and the Alliance to End Plastic Waste, the findings of this study will prove valuable to other nations with active informal sectors contemplating the advantages of a DRS for beverage containers.
With a deposit rate of R1, the study suggests that collection rates could soar to as high as 90%, surpassing the current Extended Producer Responsibility (EPR) targets in South Africa.
However, the research acknowledges that the specific circumstances in South Africa introduce uncertainties and risks related to certain aspects of DRS design and the anticipated outcomes. To mitigate these uncertainties, further work—particularly practical trials and pilot programs—will be essential.
A crucial element of this study involved comprehensive field research focused on the South African context. This included engaging with the informal economy through interviews with waste reclaimers and workshops, as well as surveying Buy Back Centres (BBCs)—which acquire recyclable materials from waste reclaimers and other sources—and informal retailers and HORECA establishments. Additionally, the research encompassed a market overview based on field surveys, data analysis, and a review of South African legislation alongside DRS/EPR frameworks from various countries across Africa and beyond.
From an environmental standpoint, the proposed DRS could lead to a significant net decrease in greenhouse gas (GHG) emissions, estimated between 119,000 and 294,000 tonnes CO2e annually. These reductions are projected on both low and high placed-on-the-market (PoM) baselines across two return route scenarios. The primary driver of this reduction is the anticipated increase in recycling activities, which may add 305,000–477,000 tonnes of waste recycled each year, thereby diminishing waste sent to landfills and curbing litter.
Moreover, the study estimates that the DRS could lower environmental externalities (including GHG emissions and localized air pollutants) by a value ranging from ZAR 0.5 to 1.2 billion annually. These environmental savings—which factor in monetized externalities and the costs associated with litter—are expected to eclipse the overall expenses incurred by producers for the DRS in terms of producer fees.
In addition to environmental benefits, economic advantages are anticipated. The DRS is projected to create between 4,600 and 8,700 new formal jobs throughout the beverage supply chain. Furthermore, the system may generate between 1,700 and 31,500 new roles for waste reclaimers involved in ‘separately collecting’ DRS containers from consumers, with potential income increases of up to 38%.
Implementing this DRS for beverage producers is estimated to cost ZAR 1.9 to 3.5 billion per year. Although the anticipated costs of a South African DRS would exceed current EPR costs for beverage producers, it promises significantly higher collection rates and enhanced environmental performance, paving the way for a more sustainable future in food and drink packaging.
