2 November 2016
The Alfred Duma Local Municipality (formerly known as Emnambithi/Ladysmith Municipality and Indaka Municipality) in partnership with Tsori Capital secures R18 million funding from Small Enterprise Finance Agency (SEFA) for the establishment of a waste sorting and baling plant that will be owned and managed by 5 co-operatives
The Alfred Duma Local Municipality is in the process of facilitating the establishment of economic development initiatives managed by cooperatives within its local municipality targeted at the inclusion of youth, women and people with disabilities into the mainstream economy. The approved waste sorting and baling plant is the first project under this program.The project entails establishment of a sorting and baling plant in Ladysmith and also 10 ward based buy back centers throughout the Municipality. This project will benefit 35 co-operatives and communities within the Municipality. The project will create 242 direct jobs, circa 75 indirect and also absorb reclaimers that are currently working on the landfill sites. The indirect jobs will be in a form of spin-offs created by this project such as logistics opportunities for transporting of waste from the buy-back centers to the sorting and baling plant and the fact that the communities will be allowed to sell its house hold waste directly to the project. The project has a signed off-take agreement with Neopak Recycling (formerly known as Nampak recycling). All the baled waste will be sold to Neopak Recycling. Neopak recycling will also be providing training to the co-operatives involved in this project. The land for the program has been made available by the Alfred Duma Local Municipality.
The Alfred Duma Local Municipality appointed Tsori Capital as its transaction advisor and Project Manager to assist in developing a concept document for this program and discuss it with the funders; Reviewing the information that is available to develop a bankable business plan; Developing a financial model using information provided by the Municipality; Develop a fund-raising plan and engage with potential funders to raise capital required for the financing of the projects; work with the Alfred Duma Local Municipality and Co-operative to negotiate terms and conditions of funding with potential funders and assist the Alfred Duma Local Municipality to reach financial close including negotiating with the off-takers of the product on behalf of the co-operative working with Municipality’s legal advisors and project manage until commissioning.
Commenting Honorable Cllr MV Madlala, Mayor of Alfred Duma Local Municipality said: “This waste recycling project is part of program by South African Government to green the economy whilst eradicating poverty and fostering the inclusion youth, women and people leaving with disabilities into the mainstream economy. As Alfred Duma Local Municipality, we have taken a resolution to drive programs that create job opportunities for our youth, women and people with disabilities throughout the municipality. Part of what this project seeks to achieve is to create economic activities in Townships and Rural areas. We thank Sefa for its quick turn-around in processing this waste recycling project”
Ms. Sibusisiwe Sixolile Ngiba, Municipal Manager (Acting) said this program will industrialize and diversify the economy of Alfred Duma Local Municipality. It is in line with the country’s strategy of supporting co-operatives and SMME’s and grow the tax base, and use the taxes to deliver more services for the under privileged. We do hope that these co-operatives involved in this project will grow and be major players within waste recycling economy.
Lita Mbokotho, Executive Chairman of Tsori Capital said waste recycling industry is estimated at circa R8 billion according to the studies done by the Department of Environmental Affairs. It is estimated to grow to R25 billion once as a country we recycle 100% of the waste generated. The country will only achieve 100% recycling rates if all the other municipalities emulate this great initiative promoted by Alfred Duma Municipality on waste recycling. There is correlation between recycling rates and job creation, the more we recycle waste, the higher the jobs we create. Thank you Alfred Duma Municipality for prioritizing youth, women and people leaving with disabilities.
Phumlani Mpungose, Chairman of Sisonke Secondary Co-operative said this project will surely change our lives. We will forever be indebted to Alfred Duma Local Municipality for believing in us and partnering with Tsori Capital to create this opportunity for us. We thank the Mayor Hon Cllr MV Madlala for being an advocate of poor communities and ensure that job creation initiatives are prioritized within Alfred Duma Local Municipality. We also thank the Acting Municipal Manager (Ms. Sibusisiwe Sixolile Ngiba) and Executive Director for Development Planning and Human Settlement (Mr Patrick Sibusiso Mkhize) for ensuring that our dream becomes a reality. We will not disappoint you. Thank you.
Issued by the Municipal Communications
Mr S Maphalala
Tel: 036 635 3400
Cell: 082 490 8716