THE CIRCULAR ECONOMY AS

DEVELOPMENT OPPORTUNITY
Exploring circular economy opportunities across
South Africa’s economic sectors

Edited by
Linda Godfrey
First published 2021
by the Council for Scientific and Industrial Research (CSIR)
Meiring Naude Road Brummeria, Pretoria, 0001, South Africa

© 2021 CSIR. Reproduction of this publication for educational or other non-commercial

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The fact that an organisation, website, or product is referred to in this work as a citation,
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The findings, interpretations and conclusions expressed in this book do not necessarily
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How to cite this book: Godfrey, L. (2021). The circular economy as development
opportunity. CSIR: Pretoria.

Cover image courtesy of Da Gama Textiles, South Africa.

About the cover image: Shweshwe, also known as shoeshoe or isishweshwe, is a printed
cotton fabric that is manufactured in South Africa. The formal name for shweshwe is
indigo-dyed discharge printed fabric. It is a trademarked fabric and the only range of
authentic shweshwe is the Three Cats brand, produced by Da Gama Textiles in the
Zwelitsha township outside King William’s Town in the Eastern Cape of South Africa. It is
printed onto cotton, of which the cotton yarn is sourced from local spinners who source
their raw material from within the SADC region.

ISBN: 978-0-7988-5667-6 (PDF)

Typeset in Garamond by CSIR

 Contents

Preface ……………………………………………………....……..……… ii
Linda Godfrey

Chapter 1: Driving economic growth in South Africa through a low carbon,

sustainable and inclusive circular economy …………………………..……. 1
Anton Nahman, Linda Godfrey, Suzan Oelofse and Douglas Trotter

Chapter 2: Placing the South African mining sector in the context of a

circular economy transition …………………………………………...…… 9
Sumaya Khan, Zintle Nontso, Fleckson Magweregwede, Linda Godfrey and Busi Sereme

Chapter 3: Supporting food security and economic development through

circular agriculture ………………………..………………………….……. 18
Blessed Okole, Greg Gordon, Bernadette Brown, Boyse Pillay, Chanel Schoeman and
Linda Godfrey

Chapter4: Supporting the development of a globally competitive

manufacturing sector through a more circular economy ……….………...… 27
Shahed Fazluddin, Vincent Ojijo, Anton Nahman and Linda Godfrey

Chapter 5: Creating resilient, inclusive, thriving human settlements through a

more circular economy …………………………...………...……………… 36
Antony K Cooper, Tinus Kruger, Linda Godfrey and Mark Napier

Chapter 6: Facilitating sustainable economic development through circular 44

mobility …………….……………………………………………...………
Refiloe Mokoena, Anton Steenkamp and Linda Godfrey

Chapter 7: Decoupling South Africa’s development from energy demand

through a more circular economy ………………………….…...…………. 53
Xolile Msimanga, Linda Godfrey and Brian North

Chapter 8: Decoupling South Africa’s development from water demand

through a circular economy ……..………………………………...……….. 61
Ashwin Seetal, Matlhodi Mathye and Linda Godfrey

i
Preface

The circular economy is not about waste management, but about sustainable
resource management. With this as context, transitioning to a more circular
economy becomes an imperative for every country, city or society in managing its
development risks.
South Africa, a developing country facing very high levels of unemployment,
poverty and inequality, has a very linear, resource extractive-based economy, with
large throughputs of resources; export of resources for further international
beneficiation; little resource ‘investment’ in local stocks; and even smaller resource
returns into the economy. This places the country at risk in terms of resource
depletion or over exploitation, with the potential to directly disrupt future
development. At the same time, there is growing demand, and competition, by
industrialized countries for access to finite resources, forcing resource-rich
countries to re-evaluate their strategic approach to resource use.
South Africa’s economy is carbon-intensive. More than 70% of South Africa’s
primary energy comes from the burning of coal. With high energy demands in
industry (52% of total national energy demand) the knock-on effect is a carbon (and
resource) intensive manufacturing sector. The transport sector draws 19% of the
national energy demand, with the majority (98%) of the transport sector’s energy
supplied through petroleum products. With 77% of land freight still transported via
road in South Africa, this makes the movement of goods and people highly carbon-
intensive. Not surprising, South Africa’s energy sector is the largest contributor to
national greenhouse gas (GHG) emissions (80% in 2017) (excl. FOLU) and was
responsible for 97% of the GHG increase over the period 2000-2017. In 2020,
South Africa’s CO2 emissions were the 12th highest in the world, accounting for
1.3% of total global emissions. Despite this, rolling blackouts since 2008, continue
to plague the country. The opportunities for decarbonising South Africa’s
economy, and driving greater energy security through circular economy
interventions cannot be underestimated.
As a water scarce country, South Africa faces significant challenges around
future water security. National water demand is expected to exceed supply by 17%
by 2030, effectively capping South Africa’s development, unless measures can be
rapidly implemented and scaled, to decouple development from water
consumption. This is particularly relevant in the agriculture sector (with 61% of
South Africa’s water allocations), and in our cities and towns (with around ~30%
of water allocations). Inefficiencies in water use across economic sectors, combined
with water leakage through deteriorating infrastructure, means that circular
interventions within agriculture, human settlements and manufacturing are urgently
needed. These challenges are further exacerbated by the legacy of spatial planning
and current approaches to urban development.
The circular economy is recognised globally, as an opportunity to reframe
economic development, unlock new economic and socio-economic opportunities,
and achieve global climate and sustainable development commitments.

ii
Transitioning to a more circular economy calls for a system change, and while it has
largely been interpreted as an environmental concept, it is ultimately an economic
issue, requiring collaboration and cooperation across all national government
departments. With both systems and multisectoral expertise, the Council for
Scientific and Industrial Research (CSIR) is well positioned to explore the
complexities and opportunities of a circular economy transition in a relatively
resource-rich, developing country such as South Africa, through the lens of science,
technology and innovation.
The intention of this book is to present the CSIR’s position and interpretation
of the circular economy, and to use it to drive discussions on where immediate
circular economy opportunities are achievable in South Africa. Opportunities that
can be harnessed by business, government and civil society. These circular economy
opportunities are framed in this book within the context of the current challenges
facing various economic sectors. The CSIR has selected seven, resource intensive
sectors – mining, agriculture, manufacturing, human settlements, mobility, energy
and water – for further assessment. Many of these economic sectors have seen
significant declines over the past years, with agriculture, manufacturing, transport
and construction all showing negative growth pre-COVID. These are all sectors
under economic stress and in need of regeneration. South Africa stands on the
threshold of profound choices regarding its future development path. Transitioning
to a more circular economy provides the country with the opportunity to address
many national priorities including manufacturing competitiveness, food security;
sustainable, resilient and liveable cities; efficient transport and logistics systems; and
energy and water security, while at the same time decarbonising the economy. The
transition to a circular economy provides the country with an opportunity for green
and inclusive development to be the cornerstone of a post-COVID economic
recovery.
The message is clear. Transitioning to a more circular South African economy
is no longer an option or a ‘nice-to-have’. As a country already feeling the impact
of resource constraints, sustainable resource use is critical to South Africa’s future
development.

Linda Godfrey
Editor

iii
Acknowledgements

The editor and authors acknowledge the funding provided by the Department of
Science and Innovation through the CSIR’s Parliamentary Grant. This public
funding has allowed the CSIR to release this book as an open access publication.

The authors would like to express their thanks to the external reviewers, Mr Chris
Whyte of the African Circular Economy Network and Dr Henry Roman of the
Department of Science and Innovation, as well as the internal reviewers Dr Douglas
Trotter of CSIR Smart Places and Dr Vincent Ojijo of CSIR Chemicals Cluster.

iv
About the Editor and Lead Authors
Linda Godfrey is a Principal Scientist at the CSIR and Extraordinary Professor at
Northwest University, South Africa, and holds a PhD in Engineering. With over
20-years of sector experience, she manages the Waste Research Development and
Innovation Roadmap Implementation Unit on behalf of Government. She has
provided strategic input to a number of local, regional and international waste and
circular economy initiatives. She lectures internationally on solid waste management
in developing countries, including the social, economic and environmental
opportunities of waste within a circular economy context. She has published
extensively in the field.

Anton Nahman is a Principal Scientist and Research Group Leader for

Sustainability, Economics and Waste in the CSIR’s Smart Places Cluster. He holds
an MSc in Environment and Development from the University of Manchester,
United Kingdom. He has 15 years of experience in environmental economics
research, applied to a diverse range of areas; including the green economy, valuation
of environmental resources and impacts, cost-benefit analysis, integrated waste
management, the development of decision-support tools and models, and the
development of alternative indicators of well-being.

Antony K Cooper is a Principal Researcher in the CSIR’s Smart Mobility Cluster

and an Extraordinary Lecturer at the University of Pretoria. He holds a PhD and is
a Registered Professional GISc Practitioner (PGP). With over 36 years of multi-
disciplinary experience, his recent activities cover geographical information science
theory and applications, standards, urban futures, the circular economy, spatial data
infrastructures, volunteered geographical information, crime science, terminology
and ethics. He has published extensively in Geographic information/Geomatics.

Ashwin Seetal is a Specialist: Integrated Water Resources Management within the

CSIR’s Smart Places Cluster. As a multi-disciplinary specialist with extensive
strategic and operations experience in the water, natural resources and development
sectors, many aspects of his work have contributed to structural, policy, legislative
and implementation reform processes in the country and internationally. His
passion is systems analysis and pragmatic strategy formulation, complemented by a
proven ability to implement.

Blessed Okole is the Research Group Leader for Agro-Processing within the
CSIR’s Advanced Agriculture and Food Cluster. He has over 24 years of experience
in the design, start-up and running of agricultural businesses. He holds a PhD in
Agricultural Biotechnology from the Technical University of Berlin. He previously
served as the Senior General Manager of Infrastructure and Planning at the
Technology Innovation Agency and the CEO of Lifelab, both initiatives of the
Department of Science and Innovation. He has several peer-reviewed publications
and holds three patents.

v
Refiloe Mokoena is a Researcher in the Pavement Design and Construction
Research Group in the CSIR’s Smart Mobility Cluster. She has 9 years of experience
in the civil engineering industry, holds an MEng degree from the University of the
Witwatersrand and has an interest in concrete pavements. Her research focus area
is on sustainable transport infrastructure, particularly on adapting South Africa’s
roads to the challenges associated with climate change. She has also contributed to
research projects aimed at providing more sustainable alternatives for road and rail
construction materials.

Shahed Fazluddin is a Principal Engineer and Research Group Leader in the

Advanced Manufacturing Group within the CSIR’s Manufacturing Cluster. He has
more than 20 years of experience across a diverse range of industries spanning
power generation, nuclear, oil & gas, manufacturing, and research and
development. His main goals lie in the re-industrialization and commercialization,
enhanced beneficiation, and localization of manufacturing capabilities within the
South Africa manufacturing sector. He has published across a diverse range of
industries to date.

Sumaya Khan is a Senior Researcher in the CSIR’s Mining Cluster. Her research
undertakings span across various sub-disciplines in mining. She has completed an
Honours degree in Engineering Geology (UKZN), an Introduction to Mining
Engineering course (WITS) and a Programme in Financial Management (UNISA).
She also has 9 years’ experience in consulting. She spent two years in a civil
geotechnical company, undertaking geotechnical investigations for various
infrastructure projects including the Gautrain tunnel. She thereafter joined a rock
engineering consulting company and gained extensive experience in open pit mine
rock mechanics.

Vincent Ojijo is a Principal Researcher and the Research Group Leader for the
Advanced Polymer Composite Group in the CSIR’s Chemicals Cluster. He has a
background in Chemical and Process Engineering, holds a DTech in Polymer
Technology and recently completed a short course on Circular Economy and
Sustainability Strategies at Judge Business School, University of Cambridge. He has
published extensively in the area of biodegradable plastics technology solutions.

Xolile Msimanga is a Senior Researcher in the CSIR’s Energy Centre, in the

Energy Industry Team. She has worked on projects in the Just Energy Transition
domain looking at socio-economic impacts related to the transition. She has several
years of experience in energy related research, modelling and analysis. She has
served multiple teams working on power sector engagements across the African
continent – including Kenya, Cote d’Ivoire, Morocco, Mozambique, Nigeria,
Malawi, and Zambia, among others. In South Africa she has worked on projects
for both public and private sector clients in the energy space.

vi
Abbreviations
ACEA African Circular Economy Alliance
ACEN African Circular Economy Network
BECCS Bioenergy with carbon capture and storage
BIDF Biorefinery Industry Development Facility
BNG Breaking New Ground
BRICS Brazil, Russia, India, China, South Africa
CAGR Compound Annual Growth Rate
CCUS Carbon capture use and storage
CDM Clean Development Mechanism
CO2 Carbon Dioxide
CRM Critical Raw Material
DALRRD Department of Agriculture, Land Reform and Rural Development
DFFE Department of Forestry, Fisheries and Environment
DHS Department of Human Settlements
DMRE Department of Mineral Resources and Energy
DoT Department of Transport
DSI Department of Science and Innovation
Dtic Department of Trade, Industry and Competition
DWS Department of Water and Sanitation
CGCSA Consumer Goods Council of South Africa
CSIR Council for Scientific and Industrial Research
EI4WS Ecological Infrastructure for Water Security
EoL End-of-life
EPR Extended Producer Responsibility
EU European Union
EV Electric vehicle
FCEV Fuel cell electric vehicle
GACERE Global Alliance on Circular Economy and Resource Efficiency
GDP Gross Domestic Product
GEF Global Environment Facility
GHG Greenhouse Gas
GWh Gigawatt hours
HV Hydrogen vehicle
IAIP Integrated agro-industrial parks
IAP Invasive alien plants
IC Internal combustion
ICEV Internal combustion engine vehicle
ICT Information Communication Technology
IEP Integrated Energy Plan

vii
IoT Internet-of-Things
IRP International Resources Panel
IRP Integrated Resource Plan
IS Industrial Symbiosis
IUDF Integrated Urban Development Framework
LIB Lithium-ion battery
LCA Life Cycle Analysis
LED Light emitting diode
LPI Logistics Performance Index
NATMAP National Transport Master Plan
NCPC National Cleaner Production Centre
NDC Nationally Determined Contribution
NDP National Development Plan
NMT Non-motorised transport
NWMS National Waste Management Strategy
OEM Original Equipment Manufacturer
PBS Performance-Based Standards
PGM Platinum Group Metals
PPA Power purchase agreement
PV Photovoltaic
R&D Research and Development
RE Renewable energy
REI4P Renewable Energy Independent Power Producer Procurement
Programme
RTMS Road Transport Management System
SANBI South African National Biodiversity Institute
SDG Sustainable Development Goals
SEZ Special Economic Zones
STI Science Technology and Innovation
TOD Transport-oriented development
TWh Terawatt-hour
UNEP United Nations Environment Programme
UNFCCC United Nations Framework Convention on Climate Change
UNIDO United Nations Industrial Development Organisation
VRP Value Retention Processes
WCDoA Western Cape Department of Agriculture
WCEF World Circular Economy Forum
WEEE Waste electrical and electronic equipment

viii
1
Driving economic growth in South Africa through a low
carbon, sustainable and inclusive circular economy
Anton Nahman, Linda Godfrey, Suzan Oelofse and Douglas Trotter

The circular economy is gaining traction as a new model for sustained and resilient
economic growth and job creation1. It provides the means to meet international
climate commitments, and to achieve the Sustainable Development Goals. A shift
to a circular economy in South Africa provides opportunities for low-carbon,
sustainable and resilient economic growth; and to address the triple challenges of
inequality, poverty, and unemployment.

1.1 From crisis to opportunity

South Africa’s economy is plagued by stagnant GDP growth, significant

unemployment, and persistent poverty and inequality. The COVID-19 pandemic
has led to a further deepening of the economic crisis; and highlights the urgency
for a new development model to drive economic recovery. Furthermore, there is a
need to place South Africa’s growth path, as outlined in the National Development
Plan2, within the context of the country’s resource base.
As a developing country rich in natural resources, South Africa is characterized
by an extractive-based economy; with large throughputs of resources, much of
which ends up as waste (solid, liquid and gaseous); and limited productive return of
resources into the economy (Figure 1.1). A large proportion (20%) of the
domestically extracted resources are exported for further beneficiation off-shore,
while there is limited use of resources for building up local ‘stocks’ of infrastructure
such as buildings, roads and rail3.
This reliance on raw material extraction and exports puts our future
development prospects at risk, in terms of over-exploitation and depletion of
resources, and predicted declines in demand for our exports. Further, while this
model has led to economic growth in the past, the gains in prosperity have not been
shared equally among the population, further entrenching social inequality. The
South African economy therefore bears the environmental, social and economic
burden of providing resources for the global market.

1
[A]

[B]

Figure 1.1. [A] Flows of materials through the South Africa economy in 2017 (adapted from
von Blottnitz et al.3); compared to material flows in a more circular economy [B]

This raises the question as to whether South Africa is using its resources in the best
interests of its people, and of its development priorities. The need to “build back
better” following the pandemic4 provides an opportunity to rethink how we are
using and managing our resources. Could using our resources in a more efficient
and productive way, in which they are retained in the economy for as long as
possible, and with a greater emphasis on local value adding and stock building, help
to unlock development and employment opportunities?

1.2 From linear to circular

The prevailing economic development paradigm, both locally and globally, can be
described as a linear ‘take-make-dispose’ or ‘take-make-waste’ economic model.
Resources are extracted from the natural environment and used to make products,
which are often used for only a short period of time, before being discarded back
into the environment5,6. Throughout this process, vast amounts of material and
energy are used; while significant emissions and waste are generated.

2
The linear economic model is incredibly wasteful, inefficient, and costly. In addition
to significant losses in economic value in the form of wasted raw materials and
energy, underutilised assets, and disposal costs5; the linear model has contributed
significantly to natural resource depletion; degradation of land and soils;
biodiversity loss; air and water pollution; waste; and climate change4,5. For example,
according to the International Resource Panel7, resource extraction and processing
is responsible for approximately 50% of climate impacts, 90% of water stress, and
90% of biodiversity loss due to land use.
South Africa is characterized by a particularly linear economy. Material cycling
in South Africa is estimated at 7% (Figure 1.1)3, of which 5% is the result of
ecological cycling of biomass and organic waste. The socio-economic cycling rate
(recycling and reuse of materials within the economy) is only 2%. There is
increasing evidence that this linear model is no longer sustainable, and presents a
risk to South Africa’s future growth.

1.3 What is a circular economy?

The circular economy is recognized globally as an opportunity to reframe economic

development and unlock new opportunities for growth and employment; while
achieving global commitments relating to climate change and sustainable
development, and reducing the negative impacts associated with both resource
extraction and waste.
In contrast to the linear economic model, a circular economy “entails keeping
materials and products in circulation for as long as possible through practices such as reuse of
products, sharing of underused assets, repairing, recycling and remanufacturing”8.
A circular economy therefore minimises the need for extraction of primary
resources, while also reducing waste. It provides opportunities for improved
resource efficiency and resource security, reduced energy and materials
consumption, and reduced climate impacts; while offering new sources of
economic growth and job creation. In short, it supports improved socio-economic
development and well-being, while reducing associated environmental and human
health impacts.
The circular economy is based on three principles: Design out waste and
pollution; keep products and materials in use; and regenerate natural systems9.
Contrary to how the concept is often perceived, a circular economy is about far
more than simply improved waste management and recycling. It instead involves a
systemic shift away from the traditional linear ‘take-make-waste’ economy; and
encompasses a radical transformation of the ways in which resources are used and
products are designed, and of the relationship between producers and consumers.
It therefore challenges us to change the way we think about product ownership,
with a greater emphasis on product sharing, renting, repair, refurbishment,
upgrading, recycling and reuse. It calls for a complete paradigm shift, creating
opportunities for entirely new business models based on resource sharing, product-
as-service, and access-over-ownership; facilitated through advances in digital
technology.

3
1.4 Benefits of a circular economy for developing countries

International studies show that a transition to a more circular economy can create
direct socio-economic benefits, including GDP growth; new sources of job
creation; more robust employment; increased profits (through both cost savings
and increased revenue from new business services); reduced reliance on increasingly
scarce raw materials; increased disposable income for individuals; enhanced utility
and convenience; and improved living conditions and health5,9. In addition, a
circular economy creates direct environmental benefits, including reduced use of
virgin resources; reduced waste and pollution; the regeneration of natural systems;
and a significant contribution to meeting climate targets4,5.
The circular economy is increasingly recognized as a key driver of a post-
pandemic economic recovery, and a new source of more sustained and resilient
economic growth, particularly in developing countries. Other BRICS countries,
particularly China and India, have taken the lead in exploring the significant
opportunities associated with the transition to a more circular economy10,11. It
provides an opportunity for emerging economies to “leapfrog” the development
models of the Global North, through innovation and early adoption of more
sustainable and inclusive growth paths. It also provides an opportunity to build
more resilient, sustainable economies that are better able to withstand future shocks
– not only pandemics; but climate-induced natural disasters such as droughts and
floods, and resource shortages, all of which are predicted to increase in both
frequency and intensity in future.
South Africa has already felt the impact of resource constraints, particularly
relating to water and energy. Decoupling growth from resource use, e.g. through
enhanced circularity, creates an opportunity to better manage risks in terms of
future resource constraints, and to build resilience. In addition, the current heavy
reliance on raw material exports puts the economy at risk – as other countries
transition toward circularity, their demand for our resources will decline. South
Africa stands to lose €8.4 billion in raw material exports (equivalent to 2.7% of
GDP) if the European Union moves to a fully circular economy12. It is therefore
essential that we rethink the way in which we utilize our resources, in order to
safeguard our future development.

1.5 The policy context for a circular economy in South Africa

The transition to a circular economy is well aligned with South Africa’s

developmental priorities as articulated in the National Development Plan2 and the
Sustainable Development Goals (SDGs); and with the country’s climate
commitments as outlined in our Nationally Determined Contribution (NDC) (as
updated). The circular economy is also seen as a key driver of a post-COVID
economic recovery, and is enjoying growing political support13,14. An important
focus is on the need for a ‘just transition’; and for an inclusive circular economy, that
is, a circular economy that benefits the economically marginalized members of
society, through employment creation and small business development15.

4
While the South African policy landscape in relation to the circular economy is
currently very fragmented, cutting across many line departments (including DMRE,
the dtic, DFFE, DWS, DALRRD, DHS, DoT, DSI); a policy context is starting to
emerge, in the form of, for example:

• the White Paper on Science, Technology and Innovation16, and the Decadal
Plan1, which identify the circular economy as a key new source of economic
growth;
• the updated National Waste Management Strategy (NWMS)17, in which the
circular economy is a central concept;
• the Extended Producer Responsibility (EPR) Regulations18;
• as well as the broader policy framework relating to the green economy15.

South Africa is also playing a leading role in advancing the circular economy across
Africa, as co-chair of the African Circular Economy Alliance (ACEA), and co-
founder of the African Circular Economy Network (ACEN). It is also active in the
international landscape, as a member of the Global Alliance on Circular Economy
and Resource Efficiency (GACERE), and as an active participant in the World
Circular Economy Forum (WCEF).

1.6 Unlocking South African opportunities: The need for a sectoral focus,
and a systems view

South Africa has been driving elements of a circular economy for decades, through
return water flows, renewable energy and waste recycling, for example. However,
these activities have not (yet) reached a scale where they can meaningfully transform
the economy and decouple growth from resource consumption and environmental
impact14.
Furthermore, the circular economy has often been narrowly interpreted in
South Africa as a ‘waste’ issue; i.e., as synonymous with recycling or with the waste
hierarchy. Circulating waste back into the economy as secondary resources is indeed
an immediate ‘low-hanging’ opportunity. However, international studies, including
in other BRICS countries10,11, have shown that the greatest opportunities for driving
circularity and improved resource productivity lie in resource-intensive sectors of
the economy, such as agriculture and manufacturing; as well as those that directly
affect human well-being, particularly in the context of rapid urbanization, such as
human settlements and mobility.
The circular economy is a systems concept, that cuts across all economic
sectors. To understand the opportunity that it provides for South Africa, it is
necessary to adopt both a sectoral focus, and a broad systems approach. In other
words, there is a need to identify specific opportunities within key sectors of the
South African economy, while also piecing these together into a systems view of
the collective opportunity.
The transition to a circular economy must also be driven by evidence and
supported through innovation. As a leading scientific and technology research

5
organization, with both sector-specific and integrative expertise, the CSIR is well
positioned to inform the national circular economy discourse, and to identify
circular economy opportunities for South Africa.
Drawing lessons from circular economy strategies in other developing
countries10,11,19, and adapting these to the South African context (taking into
account the contribution of each sector to GDP and employment in South Africa,
as well as those that are inherently resource-intensive, and where potential exists
for value-adding processes to be localised); the CSIR has identified the following
five sectors as having significant potential for circular economic development
(Figure 1.2):

• Mining
• Agriculture
• Manufacturing
• Human settlements
• Mobility

In addition, two cross-cutting thematic areas have been identified, representing key
resources and infrastructure for all economic activity in South Africa, and which
are currently facing significant constraints in being able to meet increasing demands;
and where there is therefore an urgent need for innovation in terms of resource
efficiency and sustainability:

• Energy
• Water

The CSIR is undertaking studies aimed at identifying and unlocking specific circular
economy opportunities within all seven of the above-mentioned economic sectors
and cross-cutting thematic areas (Figure 1.2).

1.7 Conclusion

South Africa stands on the threshold of profound choices regarding its future
development path. In following the global trend for green and inclusive
development to be the cornerstone of a post-COVID economic recovery, the
President has called for a recovery that is transformative, inclusive, digital, green
and sustainable20. A circular economy transition is core to the South African
development pathway; with the President affirming that “we cannot afford to be out of
step with international moves towards green growth and green development”21.
While the circular economy is gaining traction internationally, increased
circularity in the Global North will inevitably have consequences for extractive-
based economies such as South Africa. Implementing a circular economy
domestically provides opportunities for safeguarding our economy against future
resource constraints and volatility in international markets, while unlocking the
socio-economic benefits (particularly job creation) associated with economic

6
growth. It also provides opportunities to develop local value-adding industries; and
to compete in export markets that are placing increasingly stringent environmental
requirements on products.

Figure 1.2. Identifying circular economy opportunities for South Africa through a cross-
sectoral approach

International literature and best practice suggest that the circular economy is not
just about waste and recycling, but about sustainable resource management. In a
developing country context, it is about managing risks to economic development,
and unlocking new opportunities for growth and job creation. In the South African
context, the greatest opportunities are likely to lie in resource-intensive sectors, such
as mining, agriculture, and manufacturing; and in those that directly affect human
well-being, such as human settlements and mobility; as well as in energy and water,
as two key resources underpinning the economy. There is a clear need to identify
appropriate circular economy opportunities and interventions for South Africa. The
CSIR is well positioned to inform South Africa’s choices in transitioning to a more
circular economy, and to help unlock these opportunities through science,
technology and innovation.

1.8 References

1. DSI (Department of Science and Innovation) (2021). Science, Technology

and Innovation Decadal Plan 2021-2031 (Draft). DSI: Pretoria.
2. NPC (National Planning Commission) (2012). National Development Plan
2030: Our Future - Make it work. Available online.
3. Von Blottnitz, H., Virag, D., Wiedenhofer, D. and Haas, W. (2021).
Challenging but promising: South Africa’s transition towards a circular
economy. Available online
4. Circle Economy (2021). The Circularity Gap Report 2021. Available online

7
5. EMF (Ellen MacArthur Foundation) (2020). Financing the Circular
Economy: Capturing the Opportunity. Available online
6. UNIDO (2017). Circular Economy. Available online
7. IRP (International Resource Panel) (2019). Global Resources Outlook 2019:
Natural Resources for the Future We Want. Available online
8. Schroder, P. (2020). Promoting a Just Transition to an Inclusive Circular
Economy. London: Chatham House. Available online
9. EMF (Ellen MacArthur Foundation) (2017). Circular Economy in Detail.
Available online
10. EMF (Ellen MacArthur Foundation) (2018). The circular economy
opportunity for urban and industrial innovation in China. Available online
11. EMF (Ellen MacArthur Foundation) (2016). Circular Economy in India:
Rethinking growth for long-term prosperity. Available online
12. de Jong, S., van der Gaast, M., Kraak, J., Bergema, R. and Usanov, A. (2016).
The circular economy and developing countries. Available online
13. Godfrey, L., Roman, H., Smout, S., Maserumule, R., Mpofu, A., Ryan, G.
and Mokoena, K. (2021). Unlocking the Opportunities of a Circular
Economy in South Africa. In: Ghosh S.K., Ghosh S.K. (eds) Circular
Economy: Recent Trends in Global Perspective. Springer, Singapore.
Available online
14. Godfrey, L., Sithole, B. et al. (in press). Transitioning to a more circular
economy in South Africa: The role of innovation in driving greater waste
valorisation. In: Circular Economy and Waste Valorisation: Theory and
Practice from an International Perspective
15. Potgieter, J.E., Rajput, J., Hemkhaus, M., Ahlers, J., Van Hummelen, S.,
McGovern, M. and Artola, I. (2020). Circular economy in the Africa-EU
cooperation: Country Report for South Africa. Available online
16. DSI (Department of Science and Innovation) (2019). White Paper on
Science, Technology and Innovation. DSI: Pretoria. Available online
17. DEFF (Department of Environment, Forestry and Fisheries) (2021).
National Waste Management Strategy 2020. Government Gazette No
44116, 28 January 2021. Available online
18. DEFF (Department of Environment, Forestry and Fisheries) (2021).
Amendments to the Regulations Regarding Extended Producer
Responsibility. Government Gazette No 44539, 5 May 2021.
19. WEF (World Economic Forum) (2021). Five Big Bets for the Circular
Economy in Africa. African Circular Economy Alliance. Available online
20. The Presidency (2020). South Africa’s Economic Reconstruction and
Recovery Plan. Available online
21. The Presidency (2020). From the desk of the President. 24 August. Available
online

8
2
Placing the South African mining sector in the context of
a circular economy transition
Sumaya Khan, Zintle Nontso, Fleckson Magweregwede, Linda Godfrey and
Busi Sereme

The mining and metals industry has a significant role to play in a circular economy
as it provides the primary materials for consumer-use. Many South African mines
already adopt elements of a circular economy with the potential to grow their
initiatives to a larger scale for a subsequent meaningful impact on the economy.

2.1 Introduction

South Africa is richly endowed with mineral resources. The Minerals-Energy-

Complex is an important feature of the South African economy – not only in the
provision of minerals and metals into the domestic market, but also the global
economy. It is a resource intensive sector, both in the provision of resources, but
also as a major consumer of resources such as energy, water and chemicals.
However, the contribution of the mining sector to the development of the country
is gradually diminishing due to declining productivity; increasing operating costs;
fluctuating exchange rates and commodity prices; declining ore grades; increasing
mining depth; and health, safety, social and environmental challenges1.
The circular economy is positioned as a framework from which to grow
prosperity, jobs, and resilience while reducing greenhouse gas (GHG) emissions,
waste, and pollution. However, the circular economy has traditionally been seen as
a threat to the mining sector, based on a philosophy of reducing primary resource
extraction in favour of the collection and reprocessing of secondary resources or
“wastes”2. Early concepts of the circular economy placed mining outside of the
circular economy (Figure 2.1), however recent studies show that the circular
economy has a lot to offer the mining sector through sustainable resource use.
The CSIR recognises the role of the mining sector in South Africa’s transition
to a more circular economy. Firstly, in the role that the sector plays in providing
minerals and metals into downstream economic sectors such as manufacturing,
human settlements and mobility. Secondly, the circular economy creates an
opportunity for the mining sector to become more competitive and innovative
through the adoption of circular economy principles by designing out waste, closing
resource loops; and regenerating natural systems: 3,4,5

9
• Design out waste, e.g., redesign mining processes and value chains to be more
resource efficient
• Keep materials in use, e.g., reduce, reuse and recycle various waste streams,
including end-of-life equipment
• Regenerate natural systems, e.g., renewable energy, restoring mining
landscapes

[A]

[B]

Figure 2.1. Integrating the main life cycle stages for minerals and metals into the circular
economy (adapted from [A] EIT29; and [B] ICMM5)

The circular economy also has the potential to unlock new growth areas for the
South African mining sector. Transitioning to a low-carbon future, as called for in
the National Development Plan (NDP, 2030), will require more and different
minerals and metals, not less6. And despite growing innovation in closing resource-
loops, primary demand for minerals and metals is unlikely to be fulfilled by
secondary resource supplies alone, given the limitations in the quantity, quality and
accessibility of waste materials7. Urban mining also provides an opportunity for

10
mining houses to diversify their access to minerals and metals, at higher grades and
lower costs.
Globally, 50% of climate impacts, 90% of water stress, and 90% of biodiversity
loss is a result of resource extraction and processing8. Changing the way we produce
and consume resources is critical to addressing a number of global societal threats.
The COVID-19 pandemic has also highlighted the need for more resilient and
sustainable supply chains, including those for minerals and metals, which are facing
their own set of challenges.
The reliance of the South African economy on minerals and metals raises the
questions: Is resource scarcity and resource security the driver behind South
Africa’s circular economy transition, as seen in many countries? And is there an
understanding of the resources needed to achieve South Africa’s development
objectives as outlined in the NDP?

2.2 The current state of mining in South Africa

The mining sector has always played a pivotal role in the South African economy
with national gross domestic product (GDP) contributions in excess of 20% in the
1970s9. Over the years, the GDP contribution has steadily declined, with current
contributions reported to be at 8%10. In 2020, mining directly contributed R371.9
billion to the GDP, a decrease from R376.4 billion in 201911. The sector employed
452,866 people in 2020, a decline from 462,039 in 201911.
South Africa has the world’s largest resources of platinum group metals (PGM),
manganese, chromium, and gold12. Other economically important resources include
coal, iron ore and diamonds. In 2019, mineral resource exports alone accounted for
39% of the GDP while imports accounted for 15%. Mineral exports included
PGMs, iron-ore, coal, gold, manganese, petroleum (when overproduction occurs),
and chromium. Imports primarily comprised petroleum and bauxite13.
South Africa has a rich policy landscape governing the mining sector. The
Department of Mineral Resources and Energy (DMRE) promotes and administers
the regulations of the mining and minerals sector. Their goal is to promote
economic growth, social prosperity and environmental sustainability through the
mineral resources and energy sectors14. The sector is regulated by the Mineral and
Petroleum Resources Development Act (2002) (as amended). The Mining Charter
is a regulatory instrument that details specific measurable targets for the industry
and aims to facilitate transformation, sustainable development, and growth of the
industry15. Regarding environmental management, Regulation 5 of the 2015
Financial Provisioning Regulations published under Government Notice R1147
requires every mining company to set aside rehabilitation funds that can be used
for the management, remediation and rehabilitation of all environmental impacts
arising from mining activities. The regulation falls under the National
Environmental Management Act (107 of 1998) administered by the Department of
Forestry, Fisheries and Environment (DFFE). While the circular economy is not
yet recognized in South African mining policy, the mining sector’s existing policy
framework can serve the sector as it transitions to a more circular model.

11
However, legislation alone is not enough to ensure the transition to a low-carbon,
sustainable and inclusive mining sector. The mining sector faces a number of
growing challenges. Amongst the adverse socio-economic and environmental
impacts is its contribution to climate change, over-exploitation of resources,
pollution, and a rapidly growing carbon footprint3. A recent material flow analysis
for South Africa shows that our economy is dominated by the extraction of
resources supporting export markets with little local stock building; large
throughputs of gaseous, liquid and solid wastes; and very little productive return of
resources back into the South African economy16. While other countries benefit
from our minerals and metals, South Africa is left with the legacy of growing
volumes of mining waste, and associated soil and water pollution.
Reducing carbon emissions is a key environmental challenge facing South
Africa. Coal-generated electricity is the primary energy source for mining
companies17. Coal mining and associated power utilities play a dominant role in the
generation of GHG emissions. South Africa is ranked as the 12th largest contributor
to global GHG emissions, accounting for 1% of global emissions18, with 15% of
South Africa’s GHG emissions originating from the mining sector19. Apart from
environmental consequences, the country faces the risk of lack of investment if we
lag in our transition to carbon-neutrality. This could in turn have a direct impact on
employment rates in the mining sector. These issues are further complicated by a
sector now chasing complex ore bodies, mined at greater depths, with aging
infrastructure, resulting in increasing operating costs, and severe health and safety
concerns20. There is an increased demand for access to reliable energy, better quality
of resources, and transitioning to carbon neutrality21. Development and
implementation of policies and incentives to promote circularity in the mining
sector is required to stimulate economic growth and create alternative employment
opportunities.

2.3 The South African mining sector in a circular economy

The following section explores the circular economy in the context of the mining
sector – as a driver of a circular economy transition, but also as an opportunity for
the sector.

1. Resource scarcity and security as driver

For many countries, resource scarcity and security has been the driver to a circular
economy transition. These countries face limited access to the primary resources
needed to support their development. The European Union, for example, has
tracked this in terms of Critical Raw Materials (CRM) since 200822. CRMs are those
raw materials that have high economic importance, high supply shortage risk, and
are difficult to substitute23. It is currently unclear as to whether South Africa has an
understanding of the resources needed to achieve its development objectives,
including the remaining years of economically viable mineral resources, and the
local and global demand for these resources. This information is considered critical
to mitigating the risks to South Africa’s development.

12
Another factor affecting South Africa’s mining sector, is the transition by other
countries to a circular economy. If the European Union, for example, were to shift
to a fully circular economy, the demand for South Africa’s resources is expected to
decline, with a resultant impact on local GDP. This would further exacerbate the
unemployment rate in the country, but could present an opportunity for greater
local beneficiation.

2. Circular economy opportunities in the mining sector

Transitioning to a circular economy also provides opportunities for the mining
sector, aligned with the three circular economy principles –

Design out waste and pollution

New and emerging technologies are being explored for increased precision and
efficiency in ore extraction, with minimal energy usage; reduced water and capital
intensity; and less waste production. For example, coarse particle recovery, bulk
sorting, ultrafine recovery, and in situ mining24. Efficient extraction involves a more
complete extraction of the ore, extending the life of mining operations, and
increasing the range of mineral recovery. This reduces the need to open new
greenfield mines (minimising the environmental footprint) and provides diversified
opportunities for economic return.
Reducing dependence on fresh water in mining operations can contribute
positively to ecological systems. Possible innovative technologies for water recovery
and recycling include dry processing; evaporation management; novel leaching; and
dry stacking. This will also eliminate the need for wet tailings storage facilities and
instead create stable, dry, and sustainable land. Substitution of raw materials, where
possible, could potentially minimise the overall production of waste, reduce health
and environmental impacts, and reduce carbon emissions from excessive mining
operations, for example, the use of thiosulphate leaching as an alternative to cyanide
in gold processing.

Keep products and materials in use

Closing resource loops is focused on keeping resources circulating within the
economy through reuse, repair, refurbishment and recycling. While there is still
much to be done here, this concept is already adopted by some South African mines
at a site-level. Opportunities include the re-purposing of waste rock; making bricks
from clay-rich tailings; zero-waste-to-landfill strategies; using scrap metal in
combination with primary concentrates to produce metals; producing fly ash
geopolymers; secondary smelting of electronic scrap to recover valuable metals
such as gold, silver, copper and palladium; and optimising the recovery of co-
products, e.g., a nickel mining company can increase the recovery of co-products
such as PGM, cobalt and copper5. Additionally, re-mining of tailings has the
potential to revive economic opportunities for mining companies.
Given the growing stress on South Africa’s water resources, further
compounded by changing climates, closing the loop on wastewater, and the
recovery of potable water from e.g. acid mine drainage, create immediate
opportunities for mines.

13
Regenerate natural systems
The impact of coal-powered electricity generation remains a crucial issue that needs
to be urgently addressed if the country is to achieve its low-carbon goals. The
transition to renewable energy, through a green industrialisation strategy, is critical
to a circular economy transition. This could be utilised to power mining haulage
fleets, machinery, and equipment, amongst other uses. The integration of renewable
energy such as solar, wind, hydrogen (green energy) to power mining operations
will reduce energy consumption, costs and carbon footprint. For example, Gold
Field’s Westonaria mine plans to move towards 20% solar powered operations by
2022 to partially mitigate the impacts of Eskom’s unreliable supply25.
Green hydrogen mining has huge economic potential for South Africa, which
would consequently result in increasing demands for PGMs (platinum is used as a
catalyst in fuel cells)26. The advent of hydrogen mining may lead to the adoption of
fuel cell technologies in the country, used in electric vehicles (EVs). Mining
companies such as Anglo American and Impala Platinum have already adopted the
use of fuel cell electric vehicles (FCEV) at South African operations. The
production of green hydrogen requires renewable energy (solar and wind power),
both of which are vast in South Africa. This creates opportunities to decarbonize
the South African economy while creating new markets through the export of green
energy26.
While the concept of a circular economy is relatively new to the South African
mining sector, it is clear that many of the underlying principles are already being
applied in the sector, although perhaps not yet at the scale for meaningful impact.
These initiatives, however, have mainly been driven from a waste management and
eco-efficiency context and not from a circular economy context. And while
reducing, re-using, and recycling materials are highly feasible to adopt, the ‘high
impact’ principles of regeneration of natural systems and designing out waste
require large investments, often making them difficult and slow to adopt4.

2.4 The benefits of a circular mining sector

According to ACEA4, the adoption of circular economy principles may benefit the
mining sector, by:
• Reducing operating costs and increasing efficiency, through optimised use of
resources;
• Increasing access to capital by meeting investor requirements on climate
change and social issues;
• Staying ahead of regulatory requirements, by adopting comprehensive
sustainable measures;
• Adapting to the global shift in consumer demand for environmentally-friendly
products, and hence the changing demand for materials supplied by the
sector; and
• Mitigating growing internal and external reporting pressure from global
mining institutions.

14
Several opportunities discussed in the previous sections either have been or are in
the process of being implemented at some South African mines. This suggests that
these initiatives are not unrealistic in a South African context. A significant overall
positive impact could be achieved if a larger proportion of mines, or even better,
the mining sector, were to adopt these practices.
The fact that minerals and metals are finite resources is undeniable. This raises
many questions with regards to South Africa’s future security: What are the
implications to our economy, and to society, if our resources were depleted or
inaccessible? If South Africa’s global trading partners were to adopt more circular
models of their own, where does that leave South Africa as a major exporter of raw
materials? These questions lend themselves to the need for South Africa to diversify
its economic activities while decoupling economic development from primary
resource consumption. One such intervention would be to add value to raw
materials through greater local beneficiation. Apart from beneficiation, the
potential for other downstream (and upstream) interventions across the mining
value chain need to be assessed if the country is to meaningfully benefit from its
resources in the long-term27.
Embedding the mining sector in South Africa’s transition to a more circular
economy, has the potential to create new jobs, while also reskilling and upskilling
existing mine employees. This would consequently increase the demand for training
facilities and change management specialists, thereby further enhancing the
country’s socio-economic position.
Placing the mining sector within the circular economy also creates synergies
with other sectors. Young28 for example, suggests that there could be significant
socio-economic value through partnerships between mining companies and more
circular sectors, such as automotive and technology companies.

2.5 Conclusion

Although South Africa is richly endowed in mineral resources (now), future socio-
economic development may be jeopardized by continuing with a traditional,
resource-intensive, linear, take-make-dispose approach. Government and industry
must understand the role of the mining sector within a resource-secure growth path.
The current challenges facing the mining industry need to be addressed,
including, national objectives of a just transition to a low-carbon economy. The
circular economy provides us with a model to address some of these challenges.
Considering emerging technological innovation, there is a need to understand what
South Africa’s critical raw materials are, and if resource scarcity is a driver for South
Africa to transition to a more circular economy. South Africa is well positioned to
take advantage of these circular opportunities.
Many mining companies have already adopted some of the principles of a
circular economy, implying that there is potential to scale their application to
achieve meaningful impact. If strategically addressed, the circular economy should
not be considered a threat, but rather a model with potential to unlock new
opportunities for the mining sector. Global investment into the mining sector could
accelerate the drive towards economic growth, carbon neutrality and social well-

15
being through the circular economy. Further studies will provide a means to explore
the circular economy opportunities for the South African mining sector in more
detail.

2.6 References

1. Neingo, P. and Tholana, T. (2016). Trends in productivity in the South

African gold mining industry. J South Afr Inst Min Metall., 116:283-290.
Available online
2. Lèbre, E., Corder, G. and Golev, A. (2017). The Role of the Mining Industry
in a Circular Economy. J. Ind. Ecol., 21(3): 662-672. Available online
3. DSI (Department of Science and Innovation) (2019). White Paper on Science,
Technology and Innovation. DSI: Pretoria. Available online
4. ACEA (African Circular Economy Alliance) (2021). Increasing circularity in
Africa's Mining Sector. Available online
5. ICMM (International Council on Mining and Metals) (2016). Mining and
metals and the circular economy. Available online
6. Harvey, R. (2019). Mining for a Circular Economy in the Age of the Fourth
Industrial Revolution: The Case of South Africa. Policy Briefing 181, May
2019. Available online
7. Accenture (2020). The Case for Circularity in Metals and Mining. Available
online
8. IRP (International Resources Panel) (2019). Global Resources Outlook.
Available online
9. Fedderke, J. and Pirouz, F. (2002). The role of mining in the South African
economy. SAJEMS NS, 5(1): 1-34. Available online
10. Rungasammy, Y. (2021). How can government increase mining's GDP
contribution in 2021? Mining Review Africa. Available online
11. MCSA (Minerals Council South Africa) (2020). Facts and Figures 2020.
Available online
12. DMR (Department Mineral Resources) (2015). Mineral Resources. DMR:
Pretoria. Available online
13. Export Enterprises SA (2021). South African Foreign Trade in Figures,
September 2021. Available online
14. DMRE (Department Mineral Resources and Energy) (2017). DMRE –
Overview. DMRE: Pretoria. Available online
15. DMRE (Department Mineral Resources and Energy) (2018). Broad-based
socio-economic empowerment charter for the mining and mineral industry.
DMRE: Pretoria. Available online
16. Von Blottnitz, H., Virag, D., Wiedenhofer, D. and Haas, W. (2021).
Challenging but promising: South Africa’s transition towards a circular
economy. Available online
17. World Nuclear Association (2021). Nuclear Power in South Africa. Available
online
18. Mashishi, N. (2021). South Africa the 12th biggest source of greenhouse
gases? Yes, but that's not the only measure that matters. Available online

16
19. MCSA (Minerals Council South Africa) (2019). Facts and Figures 2018.
Available online
20. Mitchell, G. (2016). Challenges facing the emerging miners sector in South
Africa. Chamber of Mines: Johannesburg.
21. OreFlow (2020). OreFlow 22 February 2020. Available online
22. EC (European Commission) (2018). Report on Critical Raw Materials and the
Circular Economy. Available online
23. British Geological Survey (n.d.). Critical raw materials. Available online
24. Anglo American (n.d.). Tailings factsheet. Available online
25. Phillips, T. (2021). Mines turn to solar power because of Eskom's unreliable
electricity supply. Available online
26. PwC (n.d.). Unlocking South Africa's hydrogen potential. Available online
27. Turok, B. (2013). Problems in the mining industry in South Africa. GREAT
Insights, 2(2), Feb-Mar 2013. Available online
28. Young, A. (2021). Interview global circular economy expert, 29 June 2021.
29. EIT (2018). EIT Raw Materials Circular Economy. Available online

17
3
Supporting food security and economic development
through circular agriculture
Blessed Okole, Greg Gordon, Bernadette Brown, Boyse Pillay, Chanel Schoeman
and Linda Godfrey

“Circularity in agriculture has to be reachable and it has to be tangible. It needs to

be a thing that people will embrace because they can afford it, and because they see
its value”. (Footprint Africa)26

3.1 Introduction

The agriculture sector relies heavily on resources and natural cycles as its primary
inputs. Resources such as water, energy, soil, and nutrients underpin the functioning
of the ecosystem in which the sector operates. However, these resources are finite
and are already facing constraints in South Africa. Growing food demand and
environmental challenges such as climate change, land degradation, biodiversity
loss, and resource scarcity are increasingly pressurizing the agricultural system,
impacting food security. The sector currently faces numerous challenges. Climate
change is directly affecting agricultural productivity in South Africa through
changes in precipitation and temperature patterns; surface water runoff; crop and
animal breeds; new pests and diseases; and fertilization programs1.
Changing agricultural practices, such as monocropping, which has replaced
traditional methods of growing multiple crops on a piece of land, results in a loss
in soil productivity and resultant soil degradation. This is enhanced through the
increased use of chemical inputs, facilitating a vicious cycle whereby with each
harvest, more chemical fertilizers and synthetic pesticides are required. South Africa
already faces declining soil quality and generally, low organic matter levels2. Small-
scale and household farmers are constrained by poor infrastructure and logistics.
Opportunities to address these challenges are often constrained by the lack of
access to modern technologies that can cheaply and easily revolutionize the sector.
These include technologies like precision-farming, mobile or digital platforms,
vertical farming, anaerobic bio-digesters or agri-processing options.
Food losses and waste in South Africa are a growing reality, estimated to be in
the order of 10.3 million tonnes in 2021, or 34.3% of local production. In 2013, the
cost of food losses and waste to society was already R61.5 billion, equivalent to
2.1% of national GDP3.

18
Continuing to follow a resource intensive, linear path, focused on short-term
efficiency gains, will ultimately risk national food security. On the other hand, a
systemic approach based on circular economy principles can build a value-
preserving model that would be regenerative, resilient, non-wasteful and healthier4.
When applied to the agriculture sector, the circular economy principles of designing
out waste, closing resource loops; and regenerating natural systems, provide a
framework for South Africa to address food security5:

• Design out waste, e.g., precision farming; peri-urban and urban farming
(bringing food production and consumption closer); the sharing economy
• Keep materials in use, e.g., returning nutrients to the agricultural system;
biorefinery; value-add of waste products
• Regenerate natural systems, e.g., crop rotation; intercropping; mixed
farming, reduced or zero till

[A]

[B]

Figure 3.1. Circular agriculture and the valorization of waste from the agri-food sector
(adapted from [A] WUR6 and [B] AgrocCycle7)

19
‘Circular agriculture’ centres on a regenerative system, with the production of
agricultural commodities using a minimal amount of external inputs; decoupling
production and processing from resource utilization; closing nutrient loops;
restoring soil fertility; and reducing discharges to the environment. The circular
economy has the potential to make businesses more economically viable,
competitive and sustainable in the long-term, reducing risks linked to external
inputs and commodity prices; reducing the pressure on natural resources; and
opening new revenue streams through innovation, new technologies and
collaboration between sectors and industry. If practiced on a wide scale, circular
agriculture can reduce resource requirements (e.g. water, energy), land-use, chemical
fertilizers, synthetic pesticides, GHG emissions, and ultimately the ecological
footprint of agriculture.

3.2 The South African agricultural sector

South Africa is a major producer and exporter of agricultural products. The

diversified agricultural sector produces a wide variety of agricultural commodities
and is driven by both large-scale commercial farmers with sophisticated harvesting,
storage and processing systems, and small-scale family farms practicing subsistence
farming. Food production and retail is dominated by large corporations and large
supermarket chains respectively8. The sector contributes 3% to South Africa’s
GDP. In 2019, the total income earned in agriculture and related services was
R351,4 billion, with animals and animal products’ generating the largest sales
(R153,1 billion), followed by ‘horticultural crops and products’ (R86,3 billion) and
‘field crops’ (R61,9 billion)9. In 2021, the agricultural sector rebounded sharply
(6.2% vs -0.1%) due to increased production of field crops, horticulture and animal
products. The sector is projected to register a Compound Annual Growth Rate
(CAGR) of 4.2% during the period, 2021-202610. In 2019, the sector employed
5.0% of South Africa’s working population which equates to 768,171 workers9.
While the sector is a labour intensive one, employment in agriculture has declined
every decade since the 1970s11.
Land used for commercial agriculture is 46,4 million hectares, which represents
37,9% of the total land area of South Africa12. The sector is resource intense on
water, energy, inorganic fertilizers, and synthetic pesticides to improve yields.
Agriculture accounts for 61% of South Africa’s water allocation (See Chapter 8) with
all large irrigation schemes supplied from storage dams. As a result of high
conveyance losses, a significant proportion of this water does not reach farmers13.
Consequently, there is a need to improve crop water requirements and associated
irrigation scheduling in order to improve water productivity in the sector14. Energy
drives agricultural activities, with agriculture accounting for 6% of South Africa’s
energy demand in 2016 (See Chapter 7). The agriculture sector has a high demand
for liquid fuels, accounting for 87% of its energy demand, followed by electricity at
13%15. The energy needs are mostly in farming machinery, and the transportation
of agricultural raw materials, feeds, intermediary and finished products from farms
to various markets. In 2018, chemical fertilizer consumption for South Africa was
72.8 kg/hectare compared to a sub-Saharan average of 17 kg/hectare16.

20
South Africa has a rich policy landscape applicable to agriculture and agro-
processsing. The Agricultural Policy of 1998, Section 4 focusses on the
conservation of agricultural resources. A number of other policies, including waste
policies, have potential relevance in driving a more circular agriculture sector. The
White Paper on Science, Technology and Innovation recognizes the circular
economy as a new growth area for South Africa, with the need to modernize and
strengthen productive sectors such as agriculture. The dtic and line departments are
developing several sector master plans to support South Africa’s industrialisation
efforts. Relevant plans have been developed for agriculture and agro-processing,
and the forestry, poultry, and sugar sub-sectors. While these plans focus on
economic development, many already hint to circular economy principles.

3.3 Opportunities for greater circularity in agricultural systems

Circular economy opportunities in the agriculture sector are briefly highlighted,

aligned with the three circular economy principles:

Design out waste and pollution

Precision farming has shown good potential in increasing the efficiency of
conventional agricultural systems when combined with regenerative practices. The
use of agricultural IT, remote sensing and real-time environmental data can
optimise crop yields, increasing farmer income, while reducing environmental
externalities. Precision agriculture provides enhanced control over inputs like
energy, water, fertilisers and agrochemicals by delivering the right amount, at the
right time, and at the right place, using geo-spatial variability in soils, micro-climate
and other relevant husbandry parameters. Precision farming promotes good
stewardship of the land for future generations and preserves its potential for
multiple uses. An example is Fruitlook17, where the Western Cape Department of
Agriculture (WCDoA) is offering a state-of-the-art information technology that
helps deciduous fruit and grape farmers to be water efficient and climate smart.
FruitLook allows these farmers to improve their water use efficiency using
information from spatial data derived from remote sensing, which provides semi-
real-time information on crop growth, evapo-transpiration deficits, and nitrogen
status for irrigation blocks. This technology is currently limited to orchards and
vineyards in the Western Cape’s key growing areas.
Agricultural mechanization is a key driver of efficient farming systems. Business
models for mechanisation hire services through the sharing economy, can facilitate
greater access to advanced equipment, supporting improved productivity –
particularly for small-scale farmers. Globally, the agricultural sector is seeing a shift
from an owner-focused value proposition to a customer-centered one, through
product-as-service. This has now extended to farmer group service providers. In
this model, a group of farmers pool their resources and increase access to
agricultural mechanization services. Services cover all operations in the agricultural
value chain, from tillage to post-harvest activities, processing, and transport. The
benefit is that the machinery is available to the farmer at lower prices; with
optimization of heavy machinery (e.g., tractor) use; machinery is driven or

21
controlled by an expert; timely access to the equipment; access by vulnerable groups
including women; and flexibility for payment.
Emerging technology innovations have the potential to enable greater
circularity in South Africa’s food systems, for example by increasing supply chain
efficiency, boosting farm productivity, and improving citizen’s nutrition. Examples
include:

• Chemical leasing which is centred around a unit of payment which is no longer

related to the chemical itself, but to the benefits of the chemical. The focus
shifts from increasing the sales volume of chemicals to a value-added approach.
• Mobile or digital platforms that create better connections between producers
and consumers.
• Digitally enabled business models to facilitate equipment sharing or on-demand
services.
• Packaging technologies and agro-processing technologies to reduce post-
harvest and food losses.

Keep products and materials in use

There are substantial food losses and wastes in supply chains, from farm to table.
This is largely due to the lack of required market infrastructure; lack of safe
transport; improper handling and packaging; lack of standardization and grading;
under-developed cold chains; and improper processing. South Africa has
committed to halve per capita food waste at the retail and consumer levels and
reduce food losses along production and supply chains, including post-harvest
losses by 2030, in line with the Sustainable Development Goals. The Consumer
Goods Council of South Africa (CGCSA) has given effect to this through a food
loss and waste voluntary agreement18.
Where food losses and waste cannot be prevented, they can be productively
recycled back into the economy through various technology routes, including
composting to organic manure, or anaerobic digestion to produce bio-energy.
South Africa’s chemical fertiliser consumption is more than three times higher than
the sub-Saharan average19. An opportunity exists to increase the use of organic
fertilisers, so that nutrient loops are closed and the need for mineral fertilisers is
reduced. The application of organic fertilisers will also help to rebuild the topsoil
and soil holding capacity of agricultural lands. For centuries, animal waste from
livestock farming has been used as a source of fertilisers and soil improvers for
agriculture. Rich in macro-nutrients like nitrogen, phosphorus and potassium, they
enrich the soil and improve its aesthetics.
Organic waste streams can also be used to recover high-value materials through
biorefinery technologies, including various platform chemicals20. The Biorefinery
Industry Development Facility (BIDF), hosted by the CSIR, is working with several
industries across the agriculture and agro-processing sectors to find appropriate,
high-value solutions for various organic waste streams traditionally destined for
disposal to land21. When optimally implemented, these pathways can result in full
value chain processing of waste biomass. This obviates the need to dispose of waste

22
through landfilling, burning, stockpiling, or discharge to sea, and with it mitigating
the generation of GHG emissions.
South Africa already faces challenges in terms of food security; water scarcity; a
decrease in arable land; high population growth and rapid urbanisation. The
adoption, in urban and peri-urban settings, of sustainable farming systems, such as
vertical agriculture, hydroponics, aquaculture, aquafeed from agricultural waste, and
aquaponics, could result in several advantages and benefits:

• The production of fresh, healthy, nutritious, and pest-free food all year-round
– where production is not dependent on the weather.
• Significant reduction in the use of water – vertical farming uses 96% less water
and recycles the water.
• The use of renewable energy.
• Efficient use of land and production can take place in urban, industrial, and
rural settings close to consumers and market thus reducing transport costs, and
consequently carbon emissions.
• Higher yields per cultivated hectare and no loss of harvest because of adverse
weather conditions, drought, or pests.
• Longer shelf life of produce and reduction in input costs.

The use of treated wastewater, rain water harvesting and return-flow systems where
drainage and surplus irrigation are channeled back, are integral elements of circular
agriculture.
Industrial symbiosis also provides opportunities for keeping materials in use.
Through the intentional clustering of mutually beneficial resource-converting
industries, by-products and waste materials from one company can be used as input
into another. UNIDO is supporting the establishment of integrated agro-industrial
parks (IAIP) throughout Africa. The objectives of IAIPs are to create a better
environment for increased investment in agro-food and allied sectors; drive the
structural transformation of the economy; and reduce rural poverty. Based on the
agri-business value chain concept, a rigorous base of specialized services are
deployed targeting the weaker links of the chain including: agricultural
mechanization, modern processing technologies, packaging of perishable products,
the promotion of food safety in the processing and regulatory environment; and
interventions to improve competitiveness and productivity. The IAIP is a
geographic cluster of independent companies grouped together to provide
economies-of-scale and add value to the output of the agricultural sector, thereby
improving competitiveness and productivity. This includes providing shared
services for the reuse and beneficiation of waste22.

Regenerate natural systems

Regenerative agriculture, such as indigenous knowledge-based agriculture, is not
new in South Africa. Regenerative agriculture aims to preserve the integrity of the
natural system. Traditional practices such as crop rotation; inter-cropping; mixed
farming (combining livestock and crop production to create additional nutrient

23
loops); minimum tillage; agroforestry (tree planting in combination with crops or
pastures), ecological aquaculture; food waste application in gardens; and cover
cropping can support circular economy goals towards an optimised agricultural
system. This approach can facilitate a wide set of long-term benefits including
nutrition; preservation of genetic biodiversity; carbon capture, soil protection; water
conservation; lowering external inputs and improving the larger ecosystem as a
whole. This is in stark contrast to linear agriculture’s narrow focus on short-term
productivity and yield gains through intensive farming practices and synthetic
inputs – at the expense of long-term farm health and the environment. Effective
regenerative agriculture approaches need to encompass aspects such as: embracing
crop biodiversity, leveraging traditional agro-ecological knowledge, as well as
appropriate technology and scientific knowledge on eco-systems, soil health,
nutrition and resilience – whilst being adaptive to the context and geography23.
It is clear that the principles of a circular economy are not new to the South
African agriculture sector. Transitioning the sector from a linear to a circular one is
a necessity to support food security and to unlock new economic opportunities.
However, the sector requires the development and application of new knowledge,
leading to innovative, technological, and sustainable processes, products, and
services24. The circular economy has the potential to be scaled and fast-tracked
through a number of global trends25, many of which have direct bearing on the
agriculture sector –

• Smart farming • Biorefinery and biofuels

• Sensor technology • Genetics
• Information technology • Synthetic biology
• 3D and 4D printing • Protein transition
• Smart materials • Food design
• Robotics • Aquaculture
• Autonomous micro-robots • Vertical agriculture
• Bioinformatics • Conservation technology
• Renewable energy • Transport technology

3.4 Conclusions

Agriculture is a highly resource intensive sector, with a demand on South Africa’s

energy and water systems for land preparation, seeding, irrigation and harvesting,
amongst others. The water-energy-food nexus is fundamental to South Africa’s
economy, and any increase in demand in any one sector has knock-on effects on
the others. Transitioning to a more circular agricultural system creates very real
social, economic and environmental benefits for South Africa. These include
improved food security; resilience; global competitiveness; economic development;
job creation; decarbonising the sector; sustainable resource utilization; and
sustainable food systems.

24
3.5 References

1. Johnson, P. (2019). Farming in South Africa is under threat from climate

change. Here’s how. Available online
2. du Preez, C., van Huyssteen, C. and Mnkeni, P. (2011). Land use and soil
organic matter in South Africa 1: A review on spatial variability and the
influence of rangeland stock production. S. Afr. J. Sci., 107(5/6). Available
online
3. Oelofse, S.H.H., Polasi, T., Haywood, L. and Musvoto, C. (2021). Increasing
reliable, scientific data and information on food losses and waste in South
Africa. CSIR: Pretoria. Available online
4. EMF (Ellen MacArthur Foundation) (2016). Circular Economy in India:
Rethinking growth for long-term prosperity. Available online
5. EMF (Ellen MacArthur Foundation) (2017). Circular Economy in Detail.
Available online
6. WUR (Wageningen University & Research) (2021). Circular agrofood
system. Available online
7. Agrocycle (2017). A blueprint and EU policy-forming protocol for the
recycling and valorisation of agri-food waste. Available online
8. Oelofse, S., Muswema, A. and Ramukhwatho, F. (2018). Household food
waste disposal in South Africa: A case study of Johannesburg and
Ekurhuleni. S. Afr. J. Sci., 114(5/6). Available online
9. StatsSA (2019). Agricultural survey (Preliminary) 2019. Statistical Release
P1101. StatsSA: Pretoria. Available online
10. Mordor (n.d.). Agriculture in South Africa - Growth, Trends, Covid-19
Impact, and Forecasts (2021-2026). Available online
11. CDE (Centre for Development and Enterprise) (2019). Making South Africa
more labour intensive. Available online
12. StatsSA (2017). Census of commercial agriculture, 2017: Financial and
production statistics. StatsSA: Pretoria. Available online
13. UNEP (2009). Water sustainability of agribusiness activities in South Africa.
Chief Liquidity Series 1,42-46. Available online
14. CSIR. (n.d.). Agricultural and forest water use and water management.
Available online
15. DoE (Department of Energy) (2019). The South African Energy Sector
Report. DoE: Pretoria. Available online
16. Knoema. (n.d.). Retrieved from World Data Atlas. Available online
17. Western Cape Government. (n.d.). Case Study 1 Fruitlook. Available online
18. CGCSA (Consumer Goods Council of South Africa) (2021). South Africa’s
Food Loss and Waste Voluntary Agreement: Implementation plan. Available
online
19. EC (European Commission) (2020). Circular economy in the Africa-EU
Cooperation: Country Report for South Africa. Brussels: Trinomics.
20. DST (Department of Science and Technology) (2016). Bio-based chemicals
landscape of South Africa. DST: Pretoria.
21. CSIR (n.d.). Biorefinery Industry Development Facility. Available online

25
22. UNIDO (2019). Circular Economy and Agribusiness Development.
Available online
23. EMF (Ellen MacArthur Foundation) (2021). Circular Economy in Africa:
Examples and Opportunities - Food and Agriculture. Available online
24. Abad-Segura, E., González-Zamar, M-D., Infante-Moro, J.C. and García,
G.R. (2020). Sustainable management of digital transformation in higher
education: Global research trends. Sustainability, 12(5), 2107. Available online
25. FAO (Food and Agriculture Organization) (2017). The future of food and
Agriculture, Trends and challenges. Available online
26. Footprints Africa (2020). The Circular Economy: Our Journey in Africa So
Far. Available online

26
4
Supporting the development of a globally competitive
manufacturing sector through a more circular economy
Shahed Fazluddin, Vincent Ojijo, Anton Nahman and Linda Godfrey

“The lesson for South Africa is to build greater economic resilience – at firm and
economy level – and pursue ‘strategic autonomy’ goals, which in the South African
context demands greater levels of innovation and industrialisation”. Minister of
Trade and Industry

4.1 Introduction

The South African manufacturing sector has suffered from de-industrialization

over the past two decades, mimicking global trends. However, the local
manufacturing sector continues to operate on the linear ‘take-make-dispose’
economic model, plagued by excessive resource demand, unsustainable production
and consumption patterns, and high levels of wastage. There is a need for systemic
shifts in production and consumption patterns to enable effective resource
utilization to achieve sustainable economic growth, preserving natural capital and
improving socio-economic wellbeing.
Various policy and economic drivers have resulted in a declining demand from
South Africa's main export markets, which has seen the sector’s GDP contribution
fall from over 20% in 1993 to 13% in 20201. The South African manufacturing
sector, despite its decline, remains a sizeable contributor to national greenhouse gas
(GHG) emissions, largely through the sector’s fossil-based energy use, and liquid
fuel demand2. The heavy economic dependence on resource extraction in favour
of exports is well recognized (See Chapter 2). Despite massive inputs of natural
resources, productivity within the manufacturing sector remains low, while
significant volumes of waste and pollution are generated3.
The application of circular economy principles of designing out waste, closing
resource loops; and regenerating natural systems offers a systemic approach to
addressing these challenges and achieving resilience of the local manufacturing
economy4 as outlined below:

• Design out waste: redesign manufacturing processes and products to enhance

resource efficiency, coupled with sharing economy business models.
• Keep materials in use: remanufacture, refurbish, repair and recycle materials
and products across value chains.

27
• Regenerate natural systems: transition to green energy (solar, wind,
hydrogen) and decouple resource utilization.

The implementation of circular economy thinking can enhance sectoral innovation

and competitiveness5. This is evident from global trends. The newly adopted EU
Circular Economy Action plan forms one of the main anchors for the region’s
sustainable growth agenda - the European Green Deal6. The plan focuses on design
and production for a circular economy ensuring that resources are continuously
recirculated within the economy.
Circular solutions can similarly be leveraged locally to fulfil national
development objectives, climate obligations and Sustainable Development Goals,
with emphasis on economic growth, poverty alleviation, infrastructure
development and job creation7. The CSIR recognises the pivotal role of the
manufacturing sector in driving re-industrialization and the transition to a circular
economy. Indeed, the manufacturing sector, in close collaboration with other
economic sectors, is centrally placed to design and implement the circularity of
resources, with positive impacts on the economy, society and the environment.
Manufactured products, chemicals, plastics and industrial machinery play a key role
in the productivity and growth of both upstream and downstream economic
sectors, such as agriculture, mining, energy, and water. Applying circular principles
in the design of products, manufacturing companies can influence the production
process, and indeed the entire product life cycle, including usage and end-of-life
scenarios (Figure 4.1)7.

Figure 4.1. Integration of circular economy into manufacturing (from NREL8).

28
4.2 Overview of the South African manufacturing sector

The manufacturing sector ranks fourth in GDP contribution, embodying a diverse

list of sub-sectors, each demanding a broad range of resources, processed materials
and finished products. The main sub-sectors by contribution (%) are as follows:
food and beverages (26%), petroleum and chemical products (including plastics and
plastic products) (24%), basic iron and steel (19%), wood products, paper and
printing (11%), motor vehicles, parts and accessories (7%), glass and non-metallic
mineral products (4%), textiles and clothing (3%), furniture and other
manufactured products (3%), and electrical machinery (2%)9. The three largest sub-
sectors account for over two thirds of manufacturing activity1. Despite the sectoral
GDP doubling since 1994, its contribution to national GDP has declined, forcing
labour migration towards the services industry10.
The manufacturing sector has high resource demands, relying strongly on
primary and secondary processing of extracted resources (e.g. base metals) and
other feedstocks. These finite resources face increasing risk from over-exploitation.
Moreover, the country mostly exports un-beneficiated ores and unwrought base
metals, apart from motor vehicles, and associated spares and accessories. Lack of
local beneficiation is exacerbated by high levels of manufactured imports (>80% in
2020), comprising: motor vehicles, parts and accessories (13.6%); machinery and
equipment (11.9%); chemical products (8.9%); and basic chemicals (5%)1. In
addition, the sector draws 52% of national energy demand (See Chapter 7) and 3%
of the national water allocation (See Chapter 8). Electricity costs have outpaced
inflation for over a decade, exceeding R9Bn by Q3 2019 for the iron and steel
subsector alone11. Blackouts lead to production losses, rising costs, reduced
competitiveness and investment. Over 80% of sectoral energy is sourced from coal-
fired utilities, a major GHG source12.
Currently, industrialization driven by localization, import substitution,
beneficiation, and embracing of both green and hydrogen economies are key
thematic areas of the policy landscape, which if leveraged could pave the way for
socio-economic recovery based on circular economy models. The 10th Industrial
Policy Action Plan tackles the decline in manufacturing, having to date boosted the
automotive and textiles industries, designating specific products for preferential
procurement (rail stock, transformers, etc)13. Special Economic Zones designated
by the SEZ Act, 2014 also present opportunities for promoting circularity in local
manufacturing14. The OR Tambo SEZ recently launched for fuel cell manufacture,
Platinum Valley SEZ for auto-catalyst production and PGM recycling, and
Tshwane Automotive SEZ exemplify policy driven revival of the sector.
The dtic industry Master Plans afford further opportunities for growth and
transition toward a more circular South African economy. Localization driven by
preferential procurement and the secure supply of raw materials, chemicals and
equipment are key underlying strategies. The Steel Industry Master Plan mandates
the use of locally manufactured steel for key infrastructure programs, and value-
chain development for capital and transport equipment. Export of steel scrap is
restricted via ITAC controls and export taxes, given its economic value15. Cross-
border carbon taxes will penalize local manufacturers, hence the 2050 Master Plan

29
targets on carbon neutrality for local industry. Power-intensive steel mills,
foundries, and smelters reliant on fossil-fuels are highlighted as opportunity areas
for renewable energy and gas, water conservation and waste reduction.
The waste sector is recognised by Government as an important industry in
which technology and innovation have a crucial role to play in creating a secondary
resources economy and driving greater circularity as envisaged in the 2020 National
Waste Management Strategy (NWMS)16. Despite policy-driven changes aimed at
overcoming sector challenges, a detailed stock-take and gap analysis are needed to
frame a more coherent approach to circularity.

4.3 Circular economy opportunities in the manufacturing sector

Potential opportunities in the manufacturing sector, as aligned to these circular

economy principles, are highlighted here:

Design out waste and pollution

Circular business models have come to the fore in recent years, e.g. product-as-
service, product sharing, remanufacturing and circular supplies. Changing usage
patterns via the sharing economy and product-as-service models can realize
significant economic and environmental gains. Tata Steel and the Indian Steel
Authority set up mjunction, an e-market for steel waste, allowing traders transparent
access. mjunction has evolved into the world’s largest e-market for steel, with trade
volumes increasing from $13.8m in 2002 to $9.45Bn in 201617.
By selling product functionality or services rather than products per se,
companies can manage an entire product life cycle, and associated costs, by
developing closed material flow loops4. Renault, for example extends and optimizes
the EV battery lifecycle by selling it as a service. Since starting, battery leasing is
now preferred by over 90% of customers. Renault further extended its EV battery
lifecycle by cascading to energy storage applications17. In the EU, the circular
chemical leasing model shifts focus from increasing sales volumes to value-addition,
where the client pays per functional unit, ensuring that both supplier and end-user
achieve reductions in chemical use18.
Manufacturing product design must consider optimising materials, durability,
and repairability to design out waste. In the textiles industry, there is increased focus
on design of more durable, re-usable and eco-friendly textiles. Natural fibre
development can help avoid use of harmful chemicals in the textiles value chain, a
global problem. Improved textile design would reduce the level of hazardous
chemicals and micro-fibre waste entering ecosystems19. In the plastics industry, the
South African Plastic Pact calls for zero waste by redesigning problem packaging
such that 100% of plastics are reusable, recyclable, or compostable by 202520.
Improved resource efficiency in manufacturing is critical to the sectors global
competitiveness. The National Cleaner Production Centre (NCPC-SA), tasked by
the dtic, fulfils a vital role in helping reduce energy, water and materials use across
various manufacturing sub-sectors. Over the period 2010-2020 the NCPC’s
industrial energy efficiency program has worked with 274 large companies and 180
manufacturing SMEs, saving over 6500 GWh in energy and R5.275 Bn in direct

30
costs21. The recent NCPC I-GO (Integrated Greening Operations) initiative,
facilitated on behalf of UNEP aims to scale-up resource efficiency efforts of SMEs
in Africa.

Keep products and materials in use

Circular economies aim to optimize resource yields by constantly circulating
products, components, and materials at highest utility. Tight product cycles are a
key circularity trait, circumventing a loss of embedded energy, resources and labour
from simple recycling and disposal. The remanufacture of industrial equipment by
Value Retention Processes (VRPs) can reduce virgin material usage by 80-98% and
cost by 15-80% over Original Equipment Manufacturer (OEM) products22.
Globally, remanufacturing is dominated by the automotive and aerospace
sectors (See Chapter 6), as well as construction, electrical equipment, heavy
machinery and medical devices. However, global uptake remains low due to lack of
infrastructure, supply chains and investment in remanufacturing technologies23.
Remanufacturing of internal combustion (IC) engines is a well-established industry
within the local automotive sector. In contrast to simple reconditioning, local ICE
remanufacturers adopt industry standards to guarantee used engines are returned
to OEM approved specifications through an extensive and audited process.
Remanufactured engines provide levels of performance, reliability and lifespan that
equal, and, in many instances exceed the original24.
Caterpillar, the global heavy machinery OEM has been remanufacturing
components since 1973. Caterpillar’s dedicated remanufacturing arm (CAT Reman)
is now a leader in developing value recovery processes and technologies, profitably
growing to nine locations worldwide (>3500 employees) based on its component
recovery business model. Durable parts enjoy repeated remanufacturing, e.g.
gearboxes, drivetrains and brakes4. The circular framework of designing for
multiple remanufacturing cycles has been increasingly used by CAT, given that the
major costs lie in materials (65%).
Local manufacturing features an established recycling industry across various
sub-sectors, despite a need to improve recycling rates. The South African metals
sector has established a mature scrap metal recycling industry, achieving a recycling
rate of 80% in 201825. Continued recycling is necessary to maintain steel scrap in a
constant loop, and to supplement primary steel production, given the insufficiency
to satisfy rising world demand. Almost half of EU steel originates from secondary
process and end-of-life (EoL) scrap26. A strategic value chain with opportunity for
closing resource loops is the primary processing of local platinum group metals
(PGMs). The reliance on exports of unwrought PGM base metals mandates the
need for local beneficiation. Dedicated SEZs for fuel cell and auto-catalyst
manufacture present opportunities for refurbishment and recycling of components
at EoL, enabling beneficiation and retention of extracted precious metals within the
local economy.
The electrotechnical sector is one of the fastest growing sectors globally, with high
resource demands and high levels of waste electrical and electronic equipment
(WEEE). Since 2014, e-waste has grown by 9Mt globally. Currently, <10% of
locally generated WEEE is recycled, mostly pre-processed with export for metal

31
recovery, resulting in the loss of resources. Increasing the local WEEE recycling
rate would provide local job opportunities25.
The South African plastics sector, despite implementing voluntary EPRs two
decades ago, has only achieved a 43% collection rate (input), with much lower
recycling (output) rates. Plastics recycling is an important local industry with
opportunity for businesses to actualise the SA Plastic Pact target: all packaging to
contain 30% recycled content with 70% of packaging effectively recycled by 202518.
Extended Producer Responsibility (EPR) regulations for paper and packaging, e-
waste and lighting are expected to significantly scale up the collection, reuse, repair
and recycling of these goods in line with mandated targets27.
The clothing and textiles sector requires significant circular interventions given its
impacts in terms of resource demand and resultant wastage. Currently, less than
20% of textiles are recycled globally, despite a massive environmental burden. As a
developing country, end-of-life clothing in South Africa often finds reuse
opportunities driven by high levels of poverty and unemployment. Locally,
organisations such as The Clothing Bank, and Rewoven, have partnered with major
local retailers to drive greater textile reuse of excess stock, customer returns, store
damages, end-of-season and bulk rejections. The textile sector can phase out
hazardous substances, enhance resource utilization, adopt renewable resources and
inputs, and radically improve recycling along the value chain via circular
interventions. Cascaded recycling allows re-use of textiles in lower value
applications (insulation, cleaning materials, etc)19. NCPC-SA has partnered under
the UNEP’s InTEX project in developing Innovative Business Practices and
Economic Models across the textiles value chain21. NCPC and GreenCape have
championed industrial symbiosis (IS) to close resource loops, with opportunities to
scale up and lower material input costs, whilst addressing resource scarcity and
waste28. Over the period 2015-2020, NCPC assisted 80 companies through IS,
diverting 215,000 tonnes of waste resources from landfill and saving R17.7m in
landfill diversion21.

Regenerate natural systems

In addition to the sector adopting more renewable energy solutions, the emerging
green energy market (estimated at R30Bn) offers new circular manufacturing
opportunities. NERSA’s exemption on self-generation (up to 100MW) renders
embedded generation via local solar panel, wind tower and turbine manufacture
feasible. A 1GW/yr solar PV market is sufficient for five manufacturers to set up
local facilities of 200MW each, providing opportunities for circular renewable
energy products11. Policies call on national R&D organizations to assist in
developing a green, circular industry13. Bio-based energy and materials, including
bio-catalysis, can also help in moving away from fossil-based resources.
Circular impacts can be further achieved by adopting a suite of tools, such as
Life Cycle Analysis (LCA), an important part of circular economy modelling and
analysis. LCA quantifies resource inputs and outputs to air, water and soil over the
product lifecycle, complementing circular economy models by testing model
assumptions and exploring alternatives29. Mitigating resource use throughout

32
product lifecycles can help restore natural systems and reverse pollution damage,
whilst enabling carbon footprint or climate change impact reductions.
It is clear that the application of circular economy principles is not new to the
South African manufacturing sector, with activities being driven locally, regionally
and internationally to decouple growth from resource consumption and transition
to alternative circular economy business models. However, while many of the
underlying principles are already being applied in the local manufacturing sector,
more needs to be done in achieving the scale required for meaningful impact.
Collaboration at all levels is vital, and companies can employ the ReSOLVE
framework (regenerate, share, optimize, loop, virtualize, exchange) to navigate the
complexities in transitioning to a circular economy30.
Scaling circular manufacturing will require disruptive technologies, including
digital technologies such as Internet-of-Things (IoT), big data, and blockchain,
which allow for advanced tracking and monitoring of resource utilization and waste
capacity. Additive manufacturing for instance, has disrupted traditional
manufacturing processes (machining, casting, injection moulding) enabling
reductions in development costs, resource utilization, waste and energy
consumption. Its on-demand, digitally distributed manufacturing, allows for
reduced physical inventories and more resilient supply chains.

4.4 Conclusions

South Africa needs to reverse pre-mature de-industrialisation trends of the past two
decades in a more sustainable and inclusive manner, moving away from the linear
economic ‘take-make-dispose’ model to a more resilient economic framework. The
manufacturing sector is centrally placed to unlock circular opportunities, by
designing and producing for circularity of resources, and adopting circular business
models that minimise consumption.
The benefits of a circular economy include environmental gains, job creation,
and improved competitiveness due to greater efficiencies and reduced
manufacturing costs. New opportunities exist in designing out waste by enhancing
resource efficiency, re-use, and remanufacture. New businesses can be created by
closing resource loops using value retention processes, and existing circular
initiatives can be scaled to achieve impact. Similarly, new circular manufacturing
opportunities exist in the green energy market, and adoption of renewable materials
for regeneration of natural capital.
Digital transformation driven by 4IR technologies allow for advanced
monitoring of resource utilization and waste. Industry Master Plans afford further
opportunities for growth and transition toward a more circular South African
economy, providing a framework from which to drive circularity as part of re-
industrialization. To aid in this transition, impact investment is required, as well as
enhanced collaboration within the local manufacturing sector.

33
4.5 References

1. IDC (Industrial Development Corporation) (2021). Recent developments in

the SA economy. Available online
2. DFFE (Department of Forestry, Fisheries and Environment) (2021). 7th
National Greenhouse Gas Inventory. DFFE: Pretoria. Available online
3. Von Blottnitz, H., Virag, D., Wiedenhofer, D. and Haas, W. (2021).
Challenging but promising: South Africa’s transition towards a circular
economy. Available online
4. EMF (Ellen MacArthur Foundation) (2017). Towards the Circular
Economy. Available online
5. DSI (Department of Science and Innovation) (2019). White Paper on
Science, Technology and Innovation. DSI: Pretoria. Available online
6. European Commission (2021). European Green Deal. Available online
7. WEF (World Economic Forum) (2021). Five Big Bets: Circular Economy in
Africa. Available online
8. NREL (National Renewable Energy Laboratory) (nd). Circular Economy
and Energy Materials. Available online
9. StatsSA (2018). Manufacturing: Production and Sales. Statistical Release
P3041.2. StatsSA: Pretoria. Available online
10. Buchholz, K. (2020). Global Decline of Manufacturing. Available online
11. Creamer Media (2019). Review of Manufact. Sector. Available online
12. USAID (2021). South Africa – Power Africa Fact Sheet. Available online
13. DTIC (Department of Trade, Industry and Competition) (2018). Industrial
Policy Action Plan: 2018-2021. DTIC: Pretoria. Available online
14. RSA (Republic of South Africa) (2014). Special Economic Zones Act, Act
No. 16 of 2014. Government Gazette, No. 37664, Vol. 587. Available online
15. DTIC (Department of Trade, Industry and Competition) (2021). Steel
Industry Master Plan. DTIC: Pretoria. Available online
16. DFFE (Department of Forestry, Fishers and Environment) (2020). National
Waste Management Strategy. DFFE: Pretoria. Available online
17. WBCSD (World Business Council for Sustainable Development) (2016).
CEO Guide to the Circular Economy. Available online
18. UNIDO (2016). Global promotion and implementation of chemical leasing
business models in industry. UNIDO: Vienna. Available online
19. EMF (Ellen MacArthur Foundation) (2017). A new textiles economy:
Redesigning fashion. Available online
20. SA Plastic Pact (2020). Road Map to 2025. Available online
21. NCPC-SA (2020). Impact Report. NCPC: Pretoria. Available online
22. IRP (International Resources Panel) (2018). Redefining Value:
Manufacturing Revolution. Available online
23. Nasr, N. (2018). Remanufacturing and Circular Economy. Available online
24. REMTEC (2021). Remanufactured vs Reconditioned. Available online
25. DEA (Department of Environmental Affairs) (2018). Waste Report on the
State of the environment. DEA: Pretoria. Available online
26. EUROFER (2015). Steel and the Circular Economy. Available online

34
27. DFFE (Department of Forestry, Fishers and Environment) (2021).
Amendments to NEMWA Act (2008). DFFE: Pretoria. Available online
28. WCG (Western Cape Government) (2021). Western Cape Industrial
Symbiosis Program. Available online
29. Valencia, E. (2017). Why circular business models need LCA. Available
online
30. McKinsey (2016). Circular economy: Theory to practice. Available online

35
5
Creating resilient, inclusive, thriving human settlements
through a more circular economy
Antony K Cooper; Tinus Kruger; Linda Godfrey; Mark Napier

Circularity in resource flows in cities can tackle the consumption of resources, such
as energy, water, buildings and land. Systems integration, flexibility, intelligence,
cooperative behaviour, localisation, recycling and renewable resources are the key
concepts under-pinning the Circular City20.

5.1 Introduction

Human settlements – whether cities, towns or villages – include the built

environment (houses, engineering infrastructure etc.), the natural environment
(vegetation, water bodies etc.), amenities (such as healthcare and recreation), and
the residents (people)1. Given their composition and purpose, settlements are
resource-intensive nodes consuming vast quantities of construction material, food,
energy, water, and other resources. Similarly, settlements generate various types of
waste, such as wastewater, greenhouse gas (GHG) emissions, and associated
pollution.
Cities occupy 3% of the earth’s land surface, but they are responsible for 60-
80% of energy consumption, and more than 75% of the world’s natural resource
consumption2. It is estimated that cities contribute up to 75% of global carbon
emissions, with transport and buildings being among the largest contributors3. This
large footprint is primarily due to the vast extraction, transport and construction
activities involved, as well as the energy used to light, heat and cool dwellings4.
Due to the nature of South Africa’s energy system (electricity and liquid fuels),
many human settlements are energy- and carbon-intensive centres. A study that
tracked the energy use of 20 of South Africa’s most energy-intensive cities and
towns revealed that they accounted for 38% of the country’s total energy
consumption in 2017 and were responsible for 29% of the country’s emissions5.
A large portion of South Africa’s energy is consumed within human settlements.
In 2019, 42% of the country’s electricity was sold to redistributors, mainly
municipalities. The distribution of electricity by sector in 2020 further underscores
the extensive and inefficient use of electricity within settlements (See Chapter 7).
Industry is the largest electricity consumer (52%), the residential sector consumes
8%, and the commerce and public services sector 14%. Activities linked to these
sectors largely take place within human settlements6. In addition to electricity,

36
settlements also use significant amounts of water. Municipalities supply 27% of
South Africa’s water allocations to residential, commercial, and industrial users7 (See
Chapter 8).
Settlements do not function in isolation. They are interconnected and have
symbiotic relationships with the regions within which they are located. There are
various forms of links, or networks, within and between settlements to distribute
goods, services, and people, such as roads, railways, and pipelines. For instance,
various types of food are produced in rural areas and have to be transported to
cities and towns. These networks contribute to the demands on energy and water,
while they also increase pollution, carbon emissions and waste, including large
quantities of food waste (see Chapter 3).
When applied to human settlements (Figure 5.1), circular economy principles –
eliminating waste and pollution, closing resource loops, and regenerating natural
systems – provide a promising framework for South Africa to transition to
inclusive, resilient and sustainable cities8:

• Design out waste, e.g., green, energy-efficient buildings, more compact cities,
pedestrian-friendly neighbourhoods.
• Keep materials in use, e.g., circular construction value chains, circular
organics, waste management.
• Regenerate natural systems, e.g., urban agriculture, renewable energy, green
roofs, green open spaces.

Figure 5.1. Circular and regenerative cities (adapted from UCL9)

37
5.2 Human settlements in South Africa

About two thirds of South Africa's population lives in urban areas10. While urban
areas may provide opportunities, the country’s socio-economic context affects
cities and towns. Poverty, unemployment, inequality, crime and violence impact on
the sustainability and liveability of human settlements. Many characteristics of
South Africa’s human settlements result from planning principles and approaches
influenced by the apartheid ideology and the modernist approach to urban
planning. The legacy is still visible in spatial patterns and the form and structure of
South African cities and towns, including sprawl, and low-density and mono-
functional neighbourhoods. This results in inefficiencies and the wasteful use of
scarce resources, especially land and infrastructure networks11.
Despite well-intended policies and strategies, many parts of South African cities
and towns still face challenges such as a lack of adequate infrastructure, facilities
and amenities, low levels of service and few or undesirable public spaces. South
Africa’s public infrastructure was graded D+ overall in 2017, indicating
deterioration18. A key framework guiding the future growth and management of
urban areas is the Integrated Urban Development Framework (IUDF). Its purpose
is to steer urban growth towards a sustainable growth model of compact, connected
and coordinated cities and towns11. Another key document is the Comprehensive
Plan for the Development of Sustainable Human Settlements (Breaking New
Ground - BNG). It encourages higher densities, mixed land use, integrating land
use and public transport planning and a more compact urban form to create more
diverse and responsive environments and reduce travelling distances. The spirit of
these, and other policies and strategies, clearly support the principles of the circular
economy in developing and managing human settlements in South Africa – but
they need to be implemented.
Prior to the BNG policy approach, government’s housing subsidy programme
has in the last 20 years contributed to the single-house-on-a-plot model of
development, perpetuating sprawl. These developments are often located on the
periphery of cities and towns, and therefore residents generally have to travel long
distances between their homes and their workplaces, shops, amenities, and facilities.
This increases pollution and results in inefficient use of resources1. Middle- to high-
income lifestyle and security estates developed on the outskirts of cities and towns
further contribute to the expansion of the urban edge with similar negative
environmental consequences. This development model means that municipalities
need more resources and infrastructure to render services such as water and
electricity provision, and waste collection. It also requires more maintenance of
infrastructure.
Informality manifests in South Africa’s human settlements as informal
settlements and the way income is generated. About 26% of urban dwellers live in
informal settlements12. The government has targeted programmes to support
informal settlement upgrading. The informal economy supports many households
and contributes to poverty alleviation and economic growth.

38
Many municipalities struggle to execute their mandates effectively. Challenges they
face include poor service delivery; low levels of payment for municipal services;
ageing infrastructure; and inadequate maintenance (resulting, for instance, in
substantial water losses due to leaks). In South Africa, most buildings, especially
houses, are constructed using conventional “bricks and mortar”. Despite stated
support for alternative or innovative building technologies from various
government departments, academics, researchers and practitioners, such
technologies have not been widely adopted. Government entities such as Agrément
South Africa are responsible for testing and certifying construction industry
products and methodologies to ensure quality and durability. However, factors such
as perceptions of users, municipal regulatory restrictions and procurement
challenges still inhibit mainstreaming some products and building systems.
The construction industry in South Africa has been under pressure for some
time. Public sector spending on infrastructure has declined steadily since 201713. A
recent material flow analysis found that relatively little of South Africa’s materials
consumption goes into local stock-building, i.e., infrastructure, buildings, etc.14.
However, some interventions have been put in place to stimulate the industry. For
instance, only locally produced cement, made from locally sourced raw materials,
may now be used on any government-funded project15. Furthermore, the
government has developed a post-COVID Infrastructure Investment Plan aimed
at increasing spending on infrastructure projects16. This will increase demand for
resources, but it also creates an opportunity to integrate circular economy principles
into the construction industry and economic development due to the focused
investment in construction.

5.3 Opportunities for greater circularity in urban systems

With the substantial contribution settlements make to consuming resources and

generating waste, pollution, and carbon emissions, implementing the principles of
the circular economy should make significant positive differences. The circular
economy provides an opportunity to look at ways to decouple urban development
from resource consumption, create circular cities, and contribute to improving the
quality of life for all (Figure 5.1).
A “circular city” is more than just the sum of various circular economy
interventions19. To create circular cities, the principles of the circular economy need
to be focused on more than just buildings, building components, economic or
production systems. The entire complex urban system should be considered,
particularly systems for providing services and infrastructure across multiple sectors
(rather than the system of production). At a settlement level, land and infrastructure
are also critical resources (in addition to natural and other resources). Land is scarce,
providing the space where circular activities could occur. It is also essential for
regenerating the urban ecosystem. Infrastructure plays a key role in the provision
and consumption of resources. It could also be reused and or recycled, thereby
enhancing circularity19.

39
The principles of circularity can be applied at various scales, including entire city-
regions, municipal areas, cities or towns, neighbourhoods, and buildings (industrial,
commercial, residential etc.). Opportunities for circular development are
highlighted below according to the three interconnected principles. Many
interventions could support more than one of the principles.

Design out waste and pollution

There are various ways in which human settlements could contribute to reducing
waste and pollution (including carbon emissions). For instance, deficiencies in the
construction, mobility, energy and water sectors could be addressed at settlement
level to enhance circularity.
Because the construction industry consumes vast amounts of resources, it
provides ample opportunities for circular economy interventions. Reducing
construction waste involves more than re-using material – interventions should
commence during the planning, design, specification and procurement stages of the
manufacturing or building process to limit the generation of waste from the outset
and reduce the use of virgin material. For instance, dimensional coordination and
materials and components standardisation should reduce the waste generated.
Standard sizes (steel and timber lengths, glass pane sizes, roof sheeting dimensions
etc.) should be considered when specifying material, and quantities should be
accurately calculated before materials are ordered. Other strategies include off-site
construction, recovering unused materials from building sites, and re-using
materials (e.g., concrete, bricks, roofing material), to extend the lifespan of
materials. Furthermore, buildings could be designed to facilitate deconstruction,
and to be flexible so they could be repurposed for different uses and functions to
extend the lifespan of existing stock.
Building and infrastructure efficiency are fundamentally linked to their
maintenance and management. Failing and poorly maintained infrastructure cause
resource losses, in particular water wasted because of leaking pipes.
Waste and pollution could also be reduced through space sharing economy
initiatives. This involves the sharing of underused physical spaces, e.g., as
accommodation, kitchens, and coworking spaces. Business models of the sharing
economy emphasise a shift from ownership of goods to using goods through
services. This provides opportunities for job creation, and it provides those
previously unable to afford them with access to quality goods and services. The
disruption to traditional office workspace caused by the COVID-19 pandemic,
presents an opportunity to fast-track the adoption of alternative work-space
environments, including space-sharing17.
Applying sound planning, design, and management principles at city, town and
neighbourhood level should contribute substantially to reducing pollution and
carbon emissions. For instance, accommodating and encouraging the use of non-
motorised transport (NMT) reduces the need for using private motor vehicles.
Strategies and interventions include transport-oriented development (TOD),
creating cycle- and pedestrian-friendly neighbourhoods, and providing affordable,
efficient, safe and reliable public transport (See Chapter 6).

40
Keep products and materials in use
One of the aims of the circular economy is to reduce the consumption and wastage
of resources, by closing the loop and productively returning resources back into the
economy for use, rather than disposal. The loops are the flows of resources,
materials, parts, goods, by-products and so on, within cities and neighbourhoods,
and between them. To manage these loops, they need to be mapped and
understood, and to be measured, monitored and improved.
The circular economy aims to move from linear processes to circular value
chains, such as by sharing, leasing, repairing, refurbishing, repurposing, reducing,
remanufacturing, upcycling or recycling as opposed to the traditional take-make-
consume-dispose process. This also includes just-in-time procurement (reducing
the need for excessive warehousing and parts that go unused) and reverse logistics,
where the manufacturer aims to take back as much as possible, the packaging used
and at the end of their life, the used goods. The built environment needs to be
considered as a whole, not segmented by zoning types, because opportunities are
likely to loop through different parts of a city.
Examples of the circular construction chain are brokers who facilitate sharing
expensive equipment or selling unused materials from one building site to another,
so they don’t become waste; informal businesses repairing discarded equipment or
recovering resources from waste; buildings that can be assembled and disassembled
rapidly, to be moved to where needed; and re-occupying abandoned buildings.
Other ways of closing the resource loop involve organic waste. For instance,
food waste, garden waste, etc. can be cycled back into the economy, e.g., as compost
for urban parks, gardens, urban food systems and agricultural activities surrounding
cities and towns; bio-energy generation; or returned to biorefinery processes for the
recovery of high-value products. In South Africa to a limited extent, sewerage is
already being processed to return clean water to the water distribution network and
to provide fertilizer for application within the agricultural sector. A further use of
sewerage sludge is for energy, by producing biogas through anaerobic digestion or
by burning dry sludge.

Regenerate natural systems

Regenerating natural systems means more than merely protecting the natural
environment. The concept of a regenerative settlement encompasses more than
sustainability – it involves the active restoration of the natural environment and the
regeneration of the natural resources it consumes. Regeneration incorporates the
principles described above, namely the reduction of waste and the creation of
closed loop systems that actively feed natural resources back into the ecosystem to
improve the natural environment.
A key pillar of regenerative settlements is the need for a mutually beneficial
relationship with the surrounding region. This means that cities and towns should
source their resources locally and regionally (closing the loop) to create social,
economic, and environmental value for the local communities. Similarly, local
farmers could benefit from organic waste generated by settlements. Such waste
could be a resource and could be used as compost or as livestock and poultry feed.

41
Regenerative initiatives could be implemented across various sectors such as
energy, water, mobility, and waste. It could include interventions aimed at the
generation of renewable energy, utilising rainwater and stormwater (e.g. by applying
the principles of water-sensitive design11), and creating walkable neighbourhoods.
Organic waste could be used to provide bioenergy or support decentralised energy
systems in cities and towns; for growing algae, mushrooms and insects for food and
feed; and for fibres, bioplastics and bio-aromatics. Well-considered greening
initiatives could improve the quality of the atmosphere, reduce urban heat islands,
and have a positive impact on the wellbeing of the people living in the city or town.

5.4 Conclusions

The terms “circular economy” and “circular city” may be relatively new in South Africa,
but the principles behind these concepts have been promoted by human settlement
researchers and practitioners for many years. Various policies, strategies and
frameworks guiding human settlement development in South Africa support and
encourage the development of sustainable, resource efficient, liveable, and resilient
cities, towns and neighbourhoods. However, many parts of South African cities and
towns still face challenges such as a lack of adequate infrastructure, facilities and
amenities, low levels of service and inadequate public spaces.
Since many of the circular city concepts are emerging from developed countries,
there is more to be done in understanding their relevance and appropriateness in
developing countries, often facing their own unique social and economic
challenges. When implementing circular economy initiatives in South Africa, the
local context should be carefully considered. This includes factors such as poverty,
unemployment, the role of the informal economy, inequality, crime and violence.
Furthermore, challenges related to service delivery at municipal level and the lack
of infrastructure maintenance could jeopardise initiatives aimed at creating circular
cities and towns.
To guide local circular economy initiatives, a thorough understanding of the
challenges and opportunities is needed. Reliable data and evidence are required to
develop appropriate initiatives that create a net benefit. In addition, to enhance
circularity in any settlement, attention needs to be paid to the interaction between
the systems of provision and the lifestyles of the residents, and also to the effect
lifestyles may have on the residents’ willingness to adopt circular practices.
While much needs to be done to achieve circularity in human settlements in
South Africa, the challenges are far from insurmountable. The concepts of
circularity are starting to be included in the plans of some local governments and
there are replicable projects that are already making a difference.

5.5 References

1. DHS (Department of Human Settlements) (2019). The Neighbourhood

Planning and Design Guide: Creating Sustainable Human Settlements. DHS:
Pretoria. Available online

42
2. UN (United Nations) (2021). Sustainable Development Goal 11: Cities.
Available online
3. UNEP (2021). Cities and Climate Change. Available online
4. Circle Economy (2021). The Circularity Gap Report 2021. Platform for
Accelerating the Circular Economy (PACE). Available online
5. Urban Energy Support (2020). State of Energy in South African Cities 2020.
Available online
6. DoE (Department of Energy) (2019). The South Africa Energy Sector
Report. DoE: Pretoria. Available online
7. GreenCape (2021). Water market intelligence report. Available online
8. EMF (Ellen MacArthur Foundation) (2021) Circular Economy Introduction.
Available online
9. UCL (University College London ) (2021). UCL Circular Cities Hub.
Available online
10. Statista (2021). South Africa: Urbanization from 2010 to 2020. Available
online
11. CoGTA (Department of Cooperative Governance and Traditional Affairs)
(2021). Integrated Urban Development Framework (IUDF). Available online
12. World Bank (2021). Population living in slums (% of urban population) -
South Africa. Available online
13. StatsSA (2020). Public-sector infrastructure investment falls for a third year.
Available online
14. Von Blottnitz, H., Virag, D., Wiedenhofer, D. and Haas, W. (2021).
Challenging but promising: South Africa’s transition towards a circular
economy. Available online
15. Bulbulia, T. (2021). Use of imported cement on govt-funded projects to be
prohibited from Nov 4. Eng. News, 11 Oct 2021. Available online
16. PMG (Parliamentary Monitoring Group) (2020). SA’s Infrastructure
Investment Plan post COVID19, with Minister. Available online
17. Klevnäs, P., Kulldorff, A. and Enkvist, P-A. (2021). The circular economy
and Covid-19 recovery. Available online
18. SAICE (South African Institution of Civil Engineering) (2017). 2017
Infrastructure Report Card for South Africa. Available online
19. Williams, J. (2021). Circular Cities: A Revolution in Urban Sustainability.
Routledge Studies in Sustainability. Routledge: London.
20. UCL (University College London ) (2021). UCL Circular Cities Research
Hub. Available online

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6
Facilitating sustainable economic development through
circular mobility
Refiloe Mokoena, Anton Steenkamp and Linda Godfrey

Circular mobility has strong themes of shared, integrated, smart, and sustainable
mobility, geared towards economic development while reducing the dependance on
finite resources and improving the quality of life for society. A circular mobility
system is accessible, affordable, and effective; it is multi-modal in that it incorporates
public transportation in combination with flexible last-mile solutions. “Faster
decarbonisation of the transport sector is key to achieve the 1.5°C Paris
agreement.”1

6.1 Introduction

Mobility is a key component of economic development and provides access

between businesses and their respective markets, households, and communities.
Traditional, linear approaches for managing mobility systems, operations and
infrastructure have been shown to be unsustainable as they lead to increased
greenhouse gas (GHG) emissions; depletion of finite resources; congestion; wasted
time; decreased productivity; urban heat-island effects; and pollution2.
The movement of goods and people is an energy and resource intensive activity.
The transport sector accounts for 19% of South Africa’s total energy demand (See
Chapter 7), exacerbated by extensive travel distances. The majority (98%) of the
transport sector’s energy is supplied through petroleum products3, 79% of which is
used for road transportation and 13% for civil aviation3. As at 2019, both petrol
and diesel consumption exceeded local refinery capacity production, resulting in a
steady increase in imports of both petrol and diesel finished products into South
Africa3.
The transport sector accounted for 10.7% of national GHG emissions in 2017
(excl. Forestry and Other Land Uses), with road transport making up 95.7% of that.
In comparison, domestic aviation and railway had smaller contributions at 2% and
0.9% respectively4. Emissions from transport have increased by 33.2% between
2000 and 2017, the major contributor being road transport, which increased by
37.8%, highlighting the high reliance of the South African transport sector on fossil
fuels4.
An estimated 77% of land freight is still transported via road in South Africa,
which in addition to consuming significant quantities of fossil fuels, has a direct

44
bearing on national productivity and competitiveness. The heavy reliance on road
transport also negatively impacts the condition and maintenance of the national
road network5. While South Africa has a sophisticated logistics sector, ranking 33
out of 160 countries in 2018, in terms of the World Bank’s Logistics Performance
Index (LPI), it is plagued by numerous challenges including the lack of adequate
infrastructure investment and maintenance, lack of skills, and high costs, all of
which negatively impact system efficiency5.
South Africa’s resource intensive transport systems, provides the perfect
impetus for transitioning South Africa to a more circular mobility system (Figure
6.1). Applying the circular economy principles of designing out waste, closing
resource loops; and regenerating natural systems provide a framework for South
Africa to improve the efficiency and competitiveness of mobility systems6,7. For
mobility, this includes:

• Design out waste, e.g., shared, and multi-modal mobility; increased use of
zero-emission mobility; encouraging remote and flexible working
• Keep materials in use, e.g., scaling up vehicle remanufacturing; recycling;
vehicle and infrastructure design for circularity
• Regenerate natural systems, e.g., mobility systems based on renewable
energy; climate resilient transport infrastructure

Figure 6.1. Mobility within a circular economy (adapted from SIFA8)

Circular mobility requires a primary focus on designing for users and goods, instead
of vehicles – such as planning transport networks that provide reduced travel
distance and time per journey. Transitioning towards a circular mobility system
creates opportunities for improved productivity, efficiency, and reduced costs, with

45
positive spillover effects for other sectors of the economy such as agriculture,
manufacturing, and human settlements.

6.2 Overview of the mobility sector in South Africa

South Africa has an extensive transport infrastructure network, with approximately

750,000 km of roads, approximately 30,000 km rail tracks, eight commercial ports,
and eleven principal airports5. South Africa’s transport and storage sector accounts
for ~10% of the country’s GDP (excluding unaccounted for minibus taxi services),
the fifth largest economic contributor to national GDP9. While labour intensive,
the sector saw a decrease in the number of jobs from 1,025,000 in 2019 to a low of
878,000 in the 3rd quarter of 2020 (largely due to the economic disruption caused
by the COVID-19 pandemic), which recovered to 969,000 by the 2nd quarter of
202110. Furthermore, the sector was the highest contributor to national economic
growth for the same quarter11.
With 77.3% of freight transported via road, the proportion of logistics costs to
GDP is relatively high. The approximate cost of logistics was R480 billion in 20185,
with two of the major operational expenses associated with road transport being
fuel and tyres12.
The National Development Plan (NDP 2030) recognises that poor transport
links and infrastructure networks, raises the cost of doing business in South Africa
and negatively impacts the standard of living. It calls for the sector to invest in
effective, safe, and affordable public transport as a means of facilitating mobility
for low-income households. There is a need to consolidate and expand transport
and logistics infrastructure and reduce associated costs. At the same time, the NDP
recognises the urgent need to shift to a low-carbon economy and a more sustainable
economic growth path.
With South Africa’s road transportation being the largest contributor to GHG
emissions in the transport sector, and the highest energy consumer, the sector has
employed an Emission Reduction Strategy that aims to reduce the reliance on fossil
fuels for transportation. One of the key drivers of the shift being the projected
decline in global oil reserves and resultant increasing prices.
Implementation of the Green Transport Strategy, which aims to reduce the
transport sector’s GHG emissions, provides an ideal launch pad for a circular
economy transition within South Africa’s mobility sector. While it is acknowledged
that effective implementation and sufficient funding are critical constraints to
achieving the outlined objectives, the Department of Transport has committed to
achieving sustainability through the development of regulatory instruments,
particularly for vehicle emissions; restructuring taxes; and providing incentives to
reduce costs where possible; prioritising infrastructure development; and education
and awareness to accelerate behavioural change.
There is opportunity for collaborative governance with the relevant sectors
towards a more circular mobility sector. The National Transport Master Plan
(NATMAP) 2050, for example, has identified twelve strategic themes, in order to
achieve “An integrated, smart and efficient transport system” capable of supporting
national sustainable economic growth and development.

46
6.3 Circular economy opportunities in mobility

Possible circular economy opportunities in the mobility sector are briefly

highlighted, aligned with the three circular economy principles:

Design out waste and pollution

Resource efficiency in transport systems, operations and infrastructure provides an
immediate opportunity area for decoupling the sector from resource consumption.
Transport logistics is the backbone of many economic activities. It is therefore
important that this industry be productive and efficient. It is expected that by 2040
the emissions produced from material production for vehicles will account for 60%
of life cycle emissions, versus the current figure of 18%.
There are numerous opportunities to design out waste in transport1. South
Africa has piloted two schemes that show great promise for supporting the circular
economy – the Road Transport Management System (RTMS) and Smart Truck
initiatives. The RTMS is an industry-led, self-regulation scheme that encourages
consignors, consignees, and road transport operators to implement a management-
systems standard in order to improve fleet management and sustainability; and
reduce logistics costs. By using properly considered Performance-Based Standards
(PBS) through the Smart Truck pilot project, improved heavy vehicle safety and
productivity can be achieved. The pilot project has shown substantial savings, with
one in four heavy vehicle trips eliminated using PBS; fuel and emission savings of
20%; and road wear reduction of 12%. These initiatives can be scaled up to form a
significant proportion of circular mobility.
Greater efficiency and productivity can be achieved through integrated and
multi-modal mobility, although this is proving slow to implement in South Africa.
In 2007, South Africa adopted the National Public Transport Strategy, aimed at
increasing passenger transport network productivity; reducing vehicles on the road
and the road space required for personal vehicles; alleviating road congestion;
reducing system inefficiencies and associated costs; and reducing energy
consumption per capita. The program has, however, experienced several delays13.
The reinforcement of rail for long-haul transport, which then transitions onto road
freight transport for final short-haul distribution, provides a significant opportunity
for improved productivity and efficiency, while reducing energy and material
demands, GHG emissions, and impact on national roads. There is growing interest
and support for moving suitable freight and long-haul passenger transport back to
rail, given that rail transport is the most efficient and cost-effective method for
long-haul land-based transport. Circular economy principles can also be applied to
the rail infrastructure and vehicles to reduce resource demands and overall costs.
South Africa is located on one of the busiest international sea routes, with
contrarily some of the worst performing ports in the world according to the World
Bank’s Container Port Performance Index 2020 report14. Improving the efficiency
of port operations through strategies like the development of dry ports and
modernisation of port infrastructure can increase productivity, efficiency and
overall performance.

47
 A key aspect of circular mobility also includes the incorporation of sharing
economy principles, which focus on maximising resource productivity through the
sharing of temporally under-utilised assets. In Europe, for example, cars are
estimated to park 92% of the time, and when in use only 1.5 out of the 5 seats are
occupied on average8. South Africa experiences a similar situation. Globally, the
mobility sector is seeing some shift away from an owner-focused value proposition
to a customer-centered one, resulting in a move away from individually owned
vehicles – whether for personal or business use. Mobility-as-a-Service (MaaS)
focusses on ride-, car- or bike-sharing, taxi or car rental/lease, or a combination
thereof. Utilising shared services in freight transport can also greatly reduce material
consumption and waste in the sector. This includes initiatives such as Empty Trips
which aims to utilize the traditional empty back-haul of heavy vehicles by offering
this space to other logistics companies. Ride-sharing platforms in South Africa have
shown promising outlook with growing competition in the market15.
The heavy reliance on road transport and liquid fuels means that there is an
urgent need to decarbonise the sector. This will require a shift to circular mobility
solutions, including greater mobility sharing, while reduced personal mobility will
shift to electric vehicles (EVs) supported through renewable energy. Many
countries have moved to ban internal combustion engine vehicles (ICEV) in favour
of EVs, with ambitious passenger-car and truck CO2 reduction targets. South
Africa, however, is lagging in the move to EVs, representing only 0.02% of
domestic vehicle sales. Nonetheless, this creates an opportunity for South Africa,
as 64% of locally manufactured vehicles are exported to global markets with South
Africa already having experience with hybrid vehicle manufacturing16. Large-scale
adoption of EVs or hydrogen vehicles (HVs) for public transport could be a game
changer.
Reliable data is crucial for efficient and circular mobility systems. There are large
international efforts to establish data sharing platforms and programs to unlock
maximum value at every level of different value chains. There are already several
integrated multimodal transport applications as well as private and public mobility
providers that collaborate on making their service data accessible across platforms1.
This is however severely lacking in South Africa.

Keep products and materials in use

The mobility sector has numerous opportunities to facilitate greater reuse, repair,
remanufacturing and recycling of waste materials. These include, amongst others,
end-of-life vehicles, waste batteries, and waste tyres. In addition, waste materials
can be used to substitute virgin materials in transport infrastructure, for example,
substituting natural aggregates with construction and demolition waste, which is
currently mostly landfilled.
Waste tyres have numerous end-of-life solutions. If tyres cannot be re-treaded
for reuse, they can be recycled to produce rubber crumb that has various
applications in e.g. sports tracks, building materials, and road surfaces17,18, or they
can be converted to energy or liquid fuels through high temperature thermal
processes such as pyrolysis or gasification. Several research and demonstration
projects on the use of waste materials such as steel slag, waste glass, coal ash,

48
construction waste, waste plastic and tyres, as alternatives to traditional road
materials, have been implemented in South Africa19,20. The benefits of introducing
alternative materials into road construction include offsetting virgin material use;
reducing natural land-use for quarrying; economic savings on virgin materials;
creating jobs; while also producing better performing roads21.
Lead-acid batteries have already achieved high levels of recycling in South Africa
(around 90%)22. However, as vehicle manufacturers move towards EVs, an increase
in waste lithium-ion batteries (LIBs) will occur23. With South Africa slow to adopt
EVs, the impact of large volumes of LIBs entering the waste stream is only expected
in the next 10-20 years. However, the very low levels of Li-ion battery collection
from the consumer electronics and ICT equipment sectors in South Africa, has
meant that e-waste recyclers have been reluctant to invest in local recycling
infrastructure23. With the potential for growing Li-ion battery waste, it is important
that a strategy be put in place to close the loop on this waste stream and recover
valuable materials for the South African economy.
ICEVs are likely to be in use for some time in South Africa, and in many parts
of the world. This creates an opportunity for South Africa to position itself as a
global leader in the remanufacturing of IC engines. Remanufacturing of engines is
already a well-established industry within the local automotive sector (See Chapter
4). End-of-life directives on vehicles, and other components such as vehicle
remanufacturing, will be an important driver to achieve higher levels of waste
reutilization within the sector1.

Regenerate natural systems

Restorative and regenerative design is concerned with restoring social and
ecological systems to a healthy state and enabling these systems to evolve24.
Understanding current and future user needs and expected demands on mobility
systems is therefore a critical component to regenerative and restorative design. The
shift to alternative fuels, and EVs supported through renewable energy (as
discussed above) presents an opportunity to reduce GHG emissions thus
contributing to climate change mitigation strategies and international
commitments.
Climate adaptation strategies include the planning, design and construction of
climate resilient transport infrastructure which also has benefits of reduced repair
and maintenance costs, as well as improved service life of assets. South Africa has
experienced a 57% increase in recorded weather-related disasters over the past two
decades compared to the previous two, resulting in an estimated R95 billion in
economic damages25. The increase in city vehicle emissions as well as the use of
heat trapping materials for construction can result in the occurrence of urban heat
islands. Combined with more frequently occurring heatwaves, linked to climate
change, heat stress is rapidly posing a major health risk for urban dwellers26.
Research continues to show the importance of climate change adaptation through
design of local transport infrastructure27,28. Restorative design can therefore be used
as a strategy for climate adaptation and can assist in avoiding unnecessary social and
economic costs associated with reactive and linear planning.

49
6.4 Crime and the circular economy

One of the biggest threats to transitioning South Africa to a more circular economy
is the issue of crime. Increasing crime directly impacts the use of public transport
and shared mobility. Examples include the local attacks on ride-hailing drivers and
customers; vehicle theft; and hijacking. The concept of safety is a huge deterrent
for many commuters who prefer to rather use their own vehicles. Furthermore,
crime and corruption directly discourage investment and uptake in these circular
solutions.

6.5 Conclusions

It is clear that the principles of a circular economy are not new to the South African
mobility sector. However, while many of the underlying circular economy principles
are already being applied, more needs to be done to accelerate and scale-up action,
to ensure meaningful impact. Possible reasons for the slow uptake include the fact
that South Africa is spatially segregated with large financial disparity; lack of
appropriate infrastructure, and investment; and high costs for some of the
necessary technologies. Reliable data sharing networks and systemic design
considerations for local conditions will need to be established for beneficial
implementation.
The concept of circular mobility is a multi-disciplinary area and will require
involvement from various stakeholders and participants through improved
relationships, across various sectors of the economy. The benefits of transitioning
to a circular mobility system include improved productivity and competitiveness
for business; reduced cost of doing business, reduced congestion, and reduced
GHG emissions. Government policies and strategies such as the Emission
Reduction Strategy, the Green Transport Strategy and the NATMAP 2050 support
most of the circular economy principles and provide a launch pad to promote
greater circularity within the mobility sector.

6.6 References

1. WEF (World Economic Forum) (2021). 5 steps the EU can take to create a
circular economy for cars. Available online
2. EMF (Ellen MacArthur Foundation) (2019). Circular economy in cities:
Urban Mobility System. Available online
3. DoE (Department of Energy) (2019). The South African Energy Sector
Report 2019. DoE: Pretoria. Available online
4. DFFE (Department of Forestry, Fisheries and Environment) (2021). 7th
National Greenhouse Gas Inventory. DFFE: Pretoria. Available online
5. Gain Group (2020). Sector Study: Logistics - South Africa. Available online
6. EMF (Ellen MacArthur Foundation) (2017). The circular economy in detail.
Available online
7. EMF (Ellen MacArthur Foundation) (2018). The circular economy
opportunity for urban and industrial innovation in China. Available online

50
8. SIFÀ (Società Italiana Flotte Aziendali) (2020). We drive tomorrow’s
mobility today. Available online
9. DoT (Department of Trasnport) (2016). National Transport Master Plan
(NATMAP) 2050 Synopsis Report. Chapter 4: Economic Status. DoT:
Pretoria. Available online
10. StatsSA (2020). Quarterly Labour Force Survey Quarter 3. Statistical Release
P0211. Available online
11. StatsSA. (2021). Gross domestic product: Second quarter 2021. Available
online
12. Havenga, J.H., Simpson, Z.P., King, D. de Bod, A. and Braun, M. (2016).
Logistics Barometer South Africa 2016. Stellenbosch University. Available
online
13. Manuel, M. (2019). Case study analysis of integrated public transport
networks in five South African cities. Master’s Thesis. University of Cape
Town. Available online
14. WB (World Bank) (2021). The Container Port Performance Index 2020.
Available online
15. Dube, S. C. (2016). Emerging rivalry in the ride-sharing economy: Kenya
and South Africa. Available online
16. Mukeredzi, T. (2021). Opportunities for Africa in electric vehicle market.
Available online
17. Sebola, M.R., Mativenga, P.T. and Pretorius, J. (2018). A benchmark study
of waste tyre recycling in South Africa to European Union practice. Procedia
CIRP, 69: 950-955. Available online
18. Seokwang, L. (2020). Finally a planet-friendly solution to fixing South
Africa’s broken roads. Available online
19. Mturi, G.A.J., O'Connell J.S., George, T., Ojijo, V., Mofokeng, T.,
Akhalwaya, I., Ncolosi, N. and Smit, M. (2021). The use of plastic waste in
road construction, Part I: A laboratory feasibility study. CSIR: Pretoria.
20. Akhalwaya, I., Rust, F.C., Fisher, C., Smit, M.A. and Mturi, G.A.J. (2021).
The use of plastic waste in road construction. Part II: Heavy Vehicle
Simulator Performance Evaluation. CSIR: Pretoria.
21. Green Economy Media (2021). The road to sustainability. Available online
22. DEA (Department of Environmental Affairs) (2018). South Africa State of
Waste. DEA: Pretoria. Available online
23. Gericke, M., Nyanjowa, W. and Robertson, S. (2021). Technology landscape
report and business case for the recycling of Li-ion batteries in South Africa.
Mintek: Johannesburg. Available online
24. COST (European Cooperation in Science and Technology) (2018). An
exploration in progressing a paradigm shift in built environment thinking.
Available online
25. Le Roux, A. (2021a). ISS Today: Urban South Africa is ill-prepared for the
coming climate change storm. Available online
26. Le Roux, A. (2021b). ISS Today: South African city dwellers: frogs in the
boiling pot. Available online

51
27. Mokoena, R., Mturi, G., Maritz, J., Malherbe, J. and O’Connell, J. (2021).
Adapting asphalt pavements to climate change challenges. 12th Conference
on Asphalt Pavements for Southern Africa. Available online
28. CSIR (2021). City of Tshwane Climate Actions Tool, in GreenBook
MetroView. Available online

52
7
Decoupling South Africa’s development from energy
demand through a more circular economy
Xolile Msimanga, Linda Godfrey and Brian North

“Companies that traditionally have been heavily focused on hydrocarbons are using
circularity principles as a basis for major strategic shifts in response to
decarbonisation.” 9

7.1 Introduction

The South African energy sector is a resource intensive sector characterised by high
levels of inefficiency. An estimated 71% of South Africa’s primary energy
consumption comes from the burning of coal1, with 2% of South Africa’s water
directed to energy generation2 (See Chapter 8). The sector is also a highly linear,
wasteful one, generating large quantities of gaseous, liquid, and solid waste3,4. Fly
ash and bottom ash from the electricity and petroleum sectors, were the largest
hazardous waste streams generated in South Africa in 2017, making up 75% of total
hazardous waste generation4. Eskom’s 14 coal-fired power stations consumed 116
Mt of coal in 2017, producing 202,106 GWh of power and 32 Mt of ash – an
average of 156 T of waste ash for every GWh of power produced4. This is
compounded by high transmission and distribution losses, with approximately 20%
of total primary energy entering the system lost due to power generation processes5.
The energy sector is also the largest contributor to national GHG emissions (80%
in 2017) (excl. Forestry and Other Land Uses) and was responsible for 97% of the
GHG increase over the period 2000-20176. In 2020, CO2 emissions were the 12th
highest in the world, accounting for 1.3% of total global emissions1.
South Africa has experienced constraints on its electricity system since 2008,
resulting in ongoing loadshedding. Electricity supply problems have placed severe
pressure on South Africa’s economic growth sectors, particularly manufacturing
and human settlements (See Chapters 4 and 5). Facing growing energy insecurity,
South Africa’s high reliance on fossil fuels for energy and the resulting waste,
provides the perfect impetus for transitioning to a circular energy system7 (Figure
7.1).
When applied to the energy sector, the circular economy principles –
eliminating waste and pollution; closing resource loops; and regenerating natural
systems – provide a framework for South Africa to address energy security7, 8, 9:

53
• Design out waste, e.g., energy efficiency (demand management), waste and
emissions prevention, reducing materials-use in manufacturing energy
technologies, increasing energy technology lifespans
• Keep materials in use, e.g., waste gas and heat valorisation; carbon capture
use and storage (CCUS); repair and recycling of energy technologies
(repurposing), waste-to-energy; fly-ash to building materials;
• Regenerate natural systems, e.g., renewable energy (RE), green hydrogen

Applying these circular economy principles within the South African energy sector
– both in the manufacturing of energy technologies as well as in energy utility –
creates opportunities for more efficient and sustainable use of resources in
transitioning to a low-carbon economy. It creates opportunities for decoupling
economic activity from the consumption of energy, reducing costs, driving greater
competitiveness, unlocking new business opportunities, and building resilience to
local and global shocks.
The implementation of a circular economy strategy within the energy sector,
also creates opportunities for decarbonising a range of sectors, including
agriculture, manufacturing, mobility, and human settlements (see Chapters 3, 4, 5 and
6). As South Africa works towards a just energy transition, away from fossil fuels
to cleaner energy, the circular economy provides the opportunity for greater
inclusion of social dimensions by identifying socio-economic opportunities10.

Figure 7.1. Circular materials and energy systems (adapted from EIT30 and PwC9)

7.2 The current state of energy in South Africa

The South African energy sector is heavily reliant on fossil fuels (95% of primary
energy consumption)1. This dependence has resulted in South Africa being one of
the most carbon intensive countries in the world. In 2020, coal accounted for 71%
of South Africa’s primary energy consumption, followed by oil (21%), nuclear and

54
renewable energy (5%), and natural gas (3%)1. The industrial sector is responsible
for most of the final energy demand (52%), followed by transport (19%) (Figure
7.2)11. In terms of human settlements, the percentage of electrified households in
South Africa was 85% in 201912.
South Africa’s power utility, Eskom, is facing operational challenges due to its’
ageing coal fleet (average age ~39 years) and the declining energy availability factor,
and has had to intermittently implement rotational load shedding to meet demand.
Despite this, South Africa has only progressed to ~10% installed renewable
electricity as at 202013.
After the power sector, the South African transport sector is the most important
to decarbonise as it is primarily dominated by internal combustion engine vehicles
which rely on petroleum fuels for mobility. From an economic value perspective,
the liquid fuels industry contributed R139 billion to GDP in 201914.

Figure 7.2. Energy demand in South Africa (adapted from DoE11)

Due to the lack of exploitable oil resources, South Africa relies on imports for 95%
of its’ crude oil, most of which is processed at its refineries to produce liquid fuels11.
Decarbonising the transport sector will require a shift to circular mobility solutions,
including greater mobility sharing, while reduced personal mobility will shift to
electric vehicles supported through renewable energy (See Chapter 5). This will also
benefit South Africa’s balance of trade, by reducing oil import demands. A
transition from combustion engine vehicles to electric vehicles, without broader
circular mobility solutions, will simply result in increased demand on the power
sector15.
The vision for the South Africa energy sector is clearly outlined in an array of
national policies. These include the NDP 2030, which calls for a transition to an
environmentally sustainable, climate resilient, low-carbon and just society. This is
supported by the National Climate Change Response White paper 2014. Several
flagship programmes outlined in the White Paper support a circular economy
transition. These include the Renewable Energy Programme; Energy Efficiency and

55
Energy Demand Management Programme; and the Carbon Capture Storage and
Use Programme16. In addition, South Africa has made official global commitments
to decarbonization through the Paris Agreement (2015) under the UNFCCC. Most
of the emission reductions will come from the energy sector, mainly the power
sector – as the most carbon intensive and most affordable to mitigate considering
the declining renewable energy costs17. In November 2021, at COP26, South Africa
joined France, Germany, UK, US, and the EU in announcing a partnership to
support a just transition to a low carbon economy and a climate resilient society.
This will be supported by a commitment of USD131 billion to be mobilized over
5 years18.
The Integrated Resource Plan (IRP) made allowance for renewable energy
capacity additions of 17.8 GW by 2030, which paved the way for the establishment
of the Renewable Energy Independent Power Producer Procurement Programme
(REI4P). The Integrated Energy Plan (IEP), which aims to guide future energy
infrastructure investments and policy, is anchored in the National Energy Act,
200819.

7.3 Circular economy opportunities in energy

While much of the focus of a circular energy transition has been on renewables,
there are considerable opportunities in energy efficiency and energy productivity;
and in the manufacturing and decommissioning of energy technologies. Possible
circular economy opportunities in the energy sector are briefly highlighted here,
aligned with the circular economy principles:

1. Circular economy for energy materials

As highlighted in the CSIR’s mining sector response to a circular economy (See

Chapter 2), the uptake of renewable energy technologies and the transition to a low-
carbon economy, as called for in the NDP 2030, will require more (and different)
minerals and metals, with ever larger material footprints. While this resource
demand has the potential to unlock new growth areas for the South African mining
sector, it also has the potential to erode national resource security, with widespread
environmental impacts. It is therefore important that the principles of a circular
economy are applied to the sustainable use of resources – including critical raw
materials – in the development and deployment of clean energy technologies,
including battery technologies, in South Africa (Figure 7.1). This includes –

• Improved design of energy technologies to ensure greater repair,

refurbishment, or recycling at end-of-life
• Designing energy technology manufacturing processes with reduced material
and energy use
• Increasing energy technology lifetimes (greater resource productivity)

56
2. Circular economy in energy generation and use

Design out waste and pollution

The National Energy Efficiency Strategy was gazetted in 2005 and set an economy
wide reduction target in energy intensity of 12% by 2015. The target was achieved
and exceeded, reaching 23.7% by 2012. Programmes such as the Industrial Energy
Efficiency Programme, funded by GEF and implemented by NCPC-SA in
partnership with UNIDO has since 2011, assisted more than 450 industries to save
6.5 TWh of energy, resulting in cumulative cost savings of R5.3 billion. Energy
efficiency projects have also extended into the building industry, with new building
installations of solar panels, LED lighting, motion sensing automated lighting; and
centralised heating and cooling. There is an opportunity for new infrastructure
development to make use of low-carbon, high-thermal efficient building materials
to reduce energy demand in the built environment. (See Chapter 5). The wind energy
sector has the potential to increase resource efficiency by narrowing loops in the
design and manufacturing of rare earth magnets21.

Keep products and materials in use

Waste materials provide the opportunity to generate energy, through various waste-
to-energy technology solutions, including low temperature landfill gas recovery; and
bio-energy generation from organic and biomass waste streams. eThekwini
Municipality’s waste-to-electricity landfill gas project, a CDM project, had avoided
2.5 MTCO2 equivalent emissions as at 201722. An increased focus has been placed
on diverting organic waste from landfills through composting and energy recovery
through the production of biogas23. DRAX power station, the largest and most
efficient coal-fired power station, based in the UK, converted half of its units to
run on biomass. By deploying bioenergy with carbon capture and storage (BECCS),
Drax will have minimal emissions. SAPPI has a 25MW biomass power plant in
Mpumalanga which uses the biomass waste from its production processes to
produce electricity, they could close the loop through CCUS technology.
Biorefinery of various organic waste streams, creates opportunities to recover high-
value resources. The concept is already being applied in the pulp and paper, and
sugar sectors in South Africa. Biomass, or captured “unavoidable” CO2, can also
be used as the carbon source in the production of synthetic liquid and gaseous fuels
and chemicals. The destruction of resources through high-temperature processes
such as incineration, pyrolysis, gasification, while potentially generating energy is
typically considered to fall outside of the circular economy, due to the loss of
resources through burning.
Fly ash from the burning of coal is used in the production of aluminosilicate-
based cement replacement geopolymers, with some South African companies
already doing this24. Waste heat recovery systems are used by companies to recycle
the waste heat from its’ processes back to produce electricity. Anglo Platinum
established a project to produce 5MW of electricity from its Waterval smelter
complex in Rustenburg, which was to feed 4.3 MW power back to the grid25. Battery
energy storage systems (BESS), solar panels, and wind turbines will all require
sustainable end-of-engineered life solutions to recover valuable resources.

57
Although South Africa is undergoing an energy transition, fossil fuels may still be a
part of its’ future for the foreseeable future – considering government has
highlighted the importance of developing CCUS technology to minimise the impact
from harmful CO2 emissions. This was supported by the establishment of the South
African Centre for Carbon Capture and Storage (SACCCS), a division of the
Council for Geoscience. The DMRE sees CCUS technology as one of the avenues
for continuing to take advantage of coal. In 2019, the government launched the
Coal CO2-to-X programme, which focuses on the production of green chemicals
such as green ammonia and green hydrogen from flue gas26.

Regenerate natural systems

The REI4P was introduced in 2011 as the official procurement mechanism for
renewable energy in South Africa. The programme managed to procure 6,327 GW
of renewable energy through four bidding rounds. The IRP released in 2019 makes
provision for 14,4 GW of wind power and 6 GW of solar PV power by 203027,
resulting in an ambition for an additional 20,4 GW of renewable energy by 2030.
This will result in the share of installed renewable energy increasing to ~33%. It
also makes allowance for the decommissioning of several Eskom coal power
stations equalling 11.7 GW by 2030. In 2021, the DMRE announced that the
threshold on embedded generation without licensing requirements would be
increased to 100MW28. Effectively, allowing private power generation power
purchase agreements (PPAs) for larger facilities from renewable energy resources.
Eskom plans to repurpose decommissioned coal-fired power plants using
renewable energy, battery storage, gas conversion and agri-voltaics – the symbiotic
use of solar energy and crops, resulting in energy for agricultural processes and
reduced water consumption29. A pilot is already underway, and the plan is to start
repurposing Komati Power Station in 2022 once it is fully decommissioned. Other
repurposing options could be establishing green manufacturing facilities at the
power plant sites to supply renewable energy components.
"Green hydrogen could play a pivotal role in a sector-coupled circular economy, offering a
solution for decarbonising a range of sectors, including transportation, heating, chemicals, and iron
and steel.”9. Green hydrogen production is a major component of the government’s
strategy to decarbonise. The development of the hydrogen economy increases the
business case for renewable energy. Establishing electric vehicle (EV) infrastructure
and increasing penetration, complimented by electricity sourced from renewable
energy resources instead of fossil fuel-based energy, provides an opportunity for
green mobility (See Chapter 6). Conversion of trucks to EV fuel cell technology will
reduce consumption of diesel significantly and establish further demand for
hydrogen. Furthermore, biofuels and synthetic green fuels can also be pursued.
Sustainable aviation fuel is being explored to further reduce the emissions from the
transport sector.
Solar PV and wind mini-grids in unelectrified communities reduces the use of
burning charcoal, wood and other substances for cooking, heating and lighting. It
also has the potential to create new businesses and jobs in communities, especially
if the model gives them some form of ownership of the mini-grids.

58
The principles of a circular economy are not new to the South African energy
sector. Many activities are underway to transition the sector. However, given the
magnitude of the impact of the South African energy sector, and the current high
levels of energy insecurity which negatively impact on all sectors, this is a sector
that does not have the luxury of time to achieve scale and impact of circular energy
interventions.

7.4 Conclusion

The legacy of the energy sector in South Africa has gone against the principles of a
circular economy and remains highly resource intensive and wasteful, with a
continued overreliance on fossil fuels. However, there have been several projects
and ongoing efforts to reduce this wastage and recycle waste for alternative energy
use or high-value product recovery. Furthermore, energy efficiency has been
prioritized to reduce energy consumption, while reducing GHG emissions. As
South Africa grapples with securing energy, it must decarbonize simultaneously.
Energy is required in all economic sectors and circular economy solutions in this
sector positively impacts other sectors e.g., a more sustainable and globally
competitive manufacturing sector; improved transportation and living conditions
for all citizens. Undoubtedly, as South Africa embarks on the energy transition, the
circular economy also provides the opportunity for positive socio-economic
impacts such as improved health and job creation. The energy sector has a long way
to go to achieve circularity, however the actions that are being taken and promoted
by government and industry signal a need to achieve greater resource-security in
support of socio-economic development, through sustainable resource utilisation.

7.5 References

1. BP (2021). BP statistical review of world energy 2021. Available online

2. DWS (Department of Water and Sanitation) (2017). Strategic overview of
the water sector in South Africa. DWS: Pretoria. Available online
3. Von Blottnitz, H., Virag, D., Wiedenhofer, D. and Haas, W. (2021).
Challenging but promising: South Africa’s transition towards a circular
economy. Available online
4. DEA (Department of Environmental Affairs) (2018). South Africa State of
Waste. DEA: Pretoria. Available online
5. IEA (International Energy Agency) (2020). South Africa Balance 2019.
Available online
6. DFFE (Department of Forestry, Fisheries and Environment) (2021). 7th
National Greenhouse Gas Inventory. DFFE: Pretoria. Available online
7. Korhonen, J., Honkasalo, A. and Seppälä, J. (2018). Circular economy: The
concept and its limitations. Ecol. Econ., 143, 37-46. Available online
8. EMF (Ellen MacArthur Foundation) (2017). Towards the Circular Economy
vol 1. Available online
9. PwC (2020). Taking on tomorrow: The rise of circularity in energy, utilities
and resources. Available online

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10. Mutezo, G. and Mulopo, J. (2021). A review of Africa's transition from fossil
fuels to renewable energy using circular economy principles. Renew. Sustain.
Energy Rev., 137, 110609. Available online
11. DoE (Department of Energy) (2019). The South Africa Energy Sector
Report. DoE: Pretoria. Available online
12. StatsSA (2020). General Household Survey (GHS) 2019. Statistical Release
P0318. StatsSA: Pretoria. Available online
13. Eskom (2021). Eskom Integrated Report 2021. Available online
14. SAPIA (South African Petroleum Industry Association) (2021). The
economic contribution of the downstream oil industry to South Africa in
2019. Available online
15. Mikulčić, H., Baleta, J., Klemeš, J.J. and Wang, X. (2021). Energy transition
and the role of system integration of the energy, water and environmental
systems. J. Clean. Prod., 292: 126027. Available online
16. DEA (Department of Environmental Affairs) (2014). National Climate
Change Response White Paper. DEA: Pretoria. Available online
17. Steyn, S., Tyler, E., Roff, A., Renaud, C. and Mgoduso, L. (2021). The Just
Transition Transaction: A Developing Country Coal Power Retirement
Mechanism. Meridian Economics, Cape Town. Available online
18. Presidency. (2021). Presidency on international partnership to support a just
transition to a low carbon economy and a climate resilient society. Available
online
19. DoE (Department of Energy) (2016). Integrated Energy Plan. DoE:
Pretoria. Available online
20. DoE (Department of Energy) (2016). Draft Post-2015 National Energy
Efficiency Strategy. DoE: Pretoria. Available online
21. The Danish Environmental Protection Agency. (2018). Designing out waste.
Available online
22. UNEP (2018). Green warriors in Durban convert trash to treasure.
Available online
23. GreenCape (2021). Waste Market Intelligence Report. Available online
24. Veolia (2018). Poland: Coal ash is greening cement! #LivingCircular.
Available online
25. Anglo American (2015). Anglo Platinum opens a clean energy power plant,
Eternity Power Anglo American. Available online
26. Maserumule, R. (2020). Overview of the energy RDI programme / strategy
to leverage funds for demonstration. Presentation to DSI-Eskom Bilateral,
27 July 2020. Available online
27. DMRE (Department of Mineral Resources and Energy) (2019). Integrated
Resource Plan 2019. DMRE: Pretoria. Available online
28. DMRE (Department of Mineral Resources and Energy) (2021). Mineral
resources and energy on amended schedule 2 of Electricity Regulation Act 4
of 2006. Government Gazette No. 44989. Available online
29. OSU (Oregon State University) (2021). Sustainable farm agrivoltaic.
Available online
30. EIT (2018). EIT Raw Materials Circular Economy. Available online

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8
Decoupling South Africa’s development from water
demand through a circular economy
Ashwin Seetal, Matlhodi Mathye and Linda Godfrey

“Water is our country’s most critical natural resource. Water security is

fundamental to the lives and health of our people, to the stability of our society and
to the growth and sustainability of our economy.” H.E. President Cyril
Ramaphosa, 5 August 20211.

8.1 Introduction

Water is essential for life, it drives socio-economic development and supports

healthy ecosystems. Without access to reliable sources of water, the economy will
stall. This is already evident in South Africa, where recent droughts in the Eastern
and Western Cape Provinces, fuelled by changing climates, has negatively impacted
local agriculture, manufacturing, tourism, food prices, and exports, resulting in job
losses and the diversion of much needed government funds away from national
development priorities towards disaster relief2.
South Africa is a water-scarce country, one of the thirty driest countries in the
world with an average annual rainfall of approximately 460 mm, less than half the
world average 3. It is a semi-arid country with a climate characterised by cycles of
wet or dry spells, with droughts and floods regarded as natural hazards. Climate
variability and projected climate changes are regarded as key risk factors to national
water security, particularly to South Africa’s economic development and
industrialisation strategies. Currently, South Africa is using 98% of its available
water supply4. Most of this water comes from surface water (68%) and return flows
that support surface water (13%). Based on growth projections and current water
use efficiency levels, the demand for water in South Africa is expected to exceed
supply by 17% by 2030 (Figure 8.1). If left unchecked, this will constrain South
Africa’s future growth.
A more sustainable and efficient approach in the use of our very limited water
resources is needed. The CSIR recognises the opportunity a circular economy
transition provides South Africa in decoupling growth from water consumption,
thereby addressing national resource-security in support of socio-economic
development, through sustainable water resource use.

61
When applied to water resources, the circular economy principles of eliminating
waste and pollution; closing resource loops; and regenerating natural systems,
provide a framework for South Africa to address water security5, 6 (Figure 8.2).

• Design out waste, e.g., reducing water use and wastewater generation,
improved water use efficiency, better water use practices;
• Keep materials in use, e.g., reuse and recycling of wastewater (return flows),
reclamation and recovery of resources from water-based waste;
• Regenerate natural systems, e.g., improving water flow and quality through
the restoration of land by controlling invasive alien plants (IAP) and
rehabilitating and protecting wetlands and riparian systems.

These principles are not novel in the South African water sector and have been
practiced since the 1980’s, with examples in different sectors that demonstrate these
principles. Given our economic growth and development ambitions and associated
strategies, as well as many of our prevailing circumstances, it may be opportune to
consider how a mainstreamed circular economy paradigm in the water sector can
contribute to national water security and socio-economic prosperity.

Figure 8.1. SA water demand versus supply projections for 2030 (from WRG7)

8.2 The current state of water in South Africa

Water is critical to the South African economy. It is an important input in industrial

sectors, particularly agriculture, agro-processing, manufacturing, energy
production, mining and forestry10. As highlighted by the State President in his
Cabinet announcement on 5 August 2021, “… water is a far broader issue, impacting not
only on human settlements, but also on agriculture, industry, mining and environmental
management. Water is our country’s most critical natural resource. Water security is fundamental
to the lives and health of our people, to the stability of our society and to the growth and

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sustainability of our economy.” This highest level of government commitment is a
reminder of the importance of water in our country and reinforces the criticality of
water in supporting socio-economic prosperity.

[A]

[B]

Figure 8.2. Circular water systems (adapted from [A] Delgado et al.8 and [B] Zvimba9)

The water sector has a strong influence on all economic sectors. The sectoral
allocations (Figure 8.3) show the largest demand for water in the agricultural sector
(61%) followed by human settlements (27%). However, the financial value of water
sales (Figure 8.4) highlights the discrepancy between the largest water user sectors
and the financial returns on their respective water sales. Given the importance of
agriculture to the South African economy11, decoupling agricultural production
from water demand, must be prioritised.
According to the World Bank, some regions of the world, including Africa,
could see a decline in economic growth rates of as much as 6% as a result of water-
related losses, with South Africa’s projected economic growth declining by at least

63
1%12. In South Africa, the situation is further complicated by the fact that many of
our critical industries are located inland, where access to water, and in particular
good quality water, remains a risk. With 98% of water already allocated, any
additional economic growth requires re-allocation from existing water supplies or
the generation of “new” water through alternate sources. The increase in demand
for, and supply of water will result in an increase in wastewater and pollutants,
particularly in the inland economic regions. Water supply and water quality are
interconnected.
The South African water sector directly contributed approximately R6.4bn or
0.4% to the country’s Gross Domestic Product (GDP) in 2016. The private sector’s
involvement in water is largely confined to the provision of supplies and
professional services. While there is much to be done in addressing the state of
water in South Africa, government also recognises the opportunities that exist in
the export of water technology solutions, knowledge and skills diffusion, and the
transfer of water-linked products like chemicals, industrial components, and ICT
systems10.

Figure 8.3. Water allocations in South Africa (GreenCape4)

Figure 8.4. Financial value of water sales per sector in South Africa (GreenCape4)

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A large proportion of South Africa’s GDP and jobs are directly dependent on water
through its use in the agriculture and forestry, manufacturing, energy, and mining
sectors11. Growth projections13 show that water demand leading up to 2030, will
increase in the following three key sectors: municipal by 1.3 Mm3, agriculture by 0.5
Mm3, and industry by 0.5 Mm3. The substantial projected increase in municipal
water use means that cities of the future must be water-circular, with more
sustainable use of water within our urban systems14. With increasing pressure on
our water supplies, South Africa’s water security is at risk. Additional threats are
posed by climate change, land-use changes, declining water quality and catchment
degradation.
The South African water sector is replete with policies, strategies and plans that
embrace different aspects of the circular economy. Although these interventions
are differently described, their intention and impact are the same as the circular
economy, and are aligned to South Africa’s Constitution (1996). Relevant policies
include the National Water Act (No.36 of 1998) and the National Water Resources
Strategy (2004 and 2013). Other non-statutory policies include an overarching
national, and various sectoral, Water Conservation and Demand Management
Strategies (developed since 1999), a National Strategy for Water Re-Use (2011), the
National Water and Sanitation Sector Masterplan (2018) and Industrial Policy
Action Plan (2018) and most recently, the National Water Security Framework for
South Africa (2020).
While the circular economy is not specifically recognised in South African water
policy, the existing policy framework will serve the sector as it transitions to a more
circular model.

8.3 Circular economy opportunities in the water sector

Potential circular economy opportunities in the water sector are briefly highlighted,
with broad strategic interventions in several priority domains and aligned with the
three circular economy principles described below. These priorities include:

• Decoupling agricultural production from water demand. This includes primary

agriculture and associated downstream agricultural value chains;
• Decreasing wastage and increasing water use efficiency in the urban and industrial water use
sectors. Reducing water losses, water sensitive design, geographic location of
critical and strategic industries;
• Increasing on-site wastewater treatment and re-use to minimise pollution impacts on
the receiving environment and extending water circularity; and,
• Strengthening public-private sector partnerships through greater inclusion of the
private sector in innovative circular economy interventions.

Design out waste and pollution

In order to address a looming crisis and close the gap between water supply and
demand, a strong focus must be placed on water conservation and demand
management. Addressing conservation and demand management at a municipal

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and industry level, by reducing leakages, has the potential to realize about 58 Mm3
of water per year7. Results from the National Cleaner Production Centre (NCPC-
SA), under the National Industrial Water Efficiency Programme (2015-2019),
yielded 862,795m3 in industrial water savings across 80 businesses15.
In the irrigated agricultural sector, South Africa’s largest water user, the South
African Irrigation Institute supports the sector to optimise irrigation practices and
achieve related environmental goals. Its mission is the saving of water through
technical interventions and members include designers, engineers, soil scientists,
crop experts, entrepreneurs, economists and irrigation farmers. Its initiatives
include irrigation enhancement and water knowledge training via its IrrigationWise
Academy. One of its recently completed programmes was on “Efficient irrigation
water use by Water User Associations and Water Users”. This was funded by the
DWS Fetwater Network and presented on behalf of the Directorate Water Use
Efficiency at Jacobsdal, Koffiefontein, Pongola, and Vredendal.

Keep products and materials in use

Transitioning to a circular economy goes beyond waste prevention and
minimisation. It is about the sustainable use of water; where maximum value is
extracted from water resources while in use. This includes diversifying the water
mix to include the reuse of water and wastewater.
Globally, wastewater recycling facilities are finding application in industry, e.g.,
zero discharge effluent treatment facility (Qatar); water resource exchange between
industries (South Korea). These applications result in, amongst others, the reduced
discharge of wastewater to sewerage, reduced costs, reduced water consumption,
and reduced CO2 emissions16,17. The use of treated wastewater for irrigation in
agriculture has been practiced for many years, thereby replacing water use in
agriculture and releasing freshwater for alternative use. At the same time, additional
resources can be recovered from the wastewater, including biogas, biosolids and
nutrients. At a household level, rainwater and domestic greywater have been reused
within the home, or for watering green spaces, where water of drinking quality
standard is not required18.
While the discharge of wastewater has largely been seen as a burden and cost,
growing water scarcity in many parts of South Africa has resulted in a recognition
of the importance of wastewater collection, treatment and reuse. Currently, South
Africa only treats about 54% of municipal wastewater and about 13% of water is
directly reused 11, 13. Mine water is being treated in South Africa for reuse, e.g., Anglo
American’s eMalahleni water reclamation project, where treated mine water is piped
directly to the eMalahleni Local Municipality‘s reservoirs supplying 12% of the city’s
daily water needs. Extra water is sent to other Anglo American operations. This
reuse prevents polluted mine water from impacting the environment; recovers
additional water for municipal use; and reduces the need for freshwater extraction.
Industrial wastewater is being reused in the Nestlé Mossel Bay dairy factor, where
treated, evaporated water is used for other applications within the facility such as
cooling, garden watering and cleaning19. This approach eliminates the need for
municipal water intake, and the reduction of wastewater from the factory frees up

66
capacity at the municipality’s wastewater treatment plant. A number of new
wastewater reuse facilities are planned across South Africa20.

Regenerate natural systems

South Africa’s water strategy has largely been around the investment in engineered
water infrastructure, such as dams and canals. We can no longer manage our water
security risks only through this approach. The rehabilitation and regeneration of
our natural systems, which supply water, are an integral part of our economy 21.

Examples of regenerative systems include:

• the Working-for-Water programme, which has been regenerating natural
systems since 1995, with the aim of improving the integrity of natural resources
and restoring the productive potential of land; improving water security; and
promoting sustainable use of natural resources. The programme has resulted in
improved water security; enhancing streamflow; improving water quality;
supporting secondary industries where biomass from clearing operations is
utilized; minimising potential negative impacts such as fire damage; and creating
new jobs
• the SANBI Ecological Infrastructure for Water Security (EI4WS) Project,
which links with the Water RDI Roadmap Living Catchments intervention to
address transformative innovation in catchment governance. These relate to
nature-based solutions that address sustainable livelihoods, well-being of people
and water resources. It also complements the earlier declaration of the
uKhahlamba-Drakensberg Park as a World Heritage site in 2000 which
recognised its significance as a critical source of South Africa’s water.

The circular economy concept is not new to the South African water sector. The
country has a track record dating back to the mid-1990’s in addressing water supply-
demand concerns. Several of these have endured and matured as scalable solutions
in other parts of the country. However, more needs to be done to achieve the scale
required for meaningful impact. The public and private sectors will need to invest
in the replication of current successful initiatives; the localisation of international
examples to local settings; and the identification of new opportunities through
ongoing science, technology and innovation.
Key economic sectors for water innovation opportunities, given their water
resources demands and impacts, are the agricultural, mining and municipal sectors.

8.4 Conclusion

Increasing water demands and deteriorating water quality are severely impacting
South Africa’s economic development. Constraints in water supply are increasingly
compromising water security. Traditional options to supplement our water supply
are also becoming unavailable and unaffordable. Together with the economic
growth plans and climate change projections, our water security picture looks bleak.

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However, current and long-standing examples in practice of the three circular
economy principles provide tangible evidence (financial and water security) of the
benefits of the circular economy to water users in our different economic sectors
(industries, mines, municipalities and agriculture).
Under these circumstances, the circular economy becomes our “no option
solution” and wastewater our “new gold”. There are almost boundless intervention
opportunities, if sought out. As a forward-focused intervention, the mainstreaming
of a water circular economy paradigm in South Africa provides opportunities to
support and fortify our current and future economy against the projected changes.
Most importantly, the circular economy will provide us with the means to build
improved resilience to potential future shocks.

8.5 References

1. Daily Maverick. (2021) Dedicated water and sanitation department a good

first step-but minister Senzo Mchunu faces a herculean task. Available online
2. Godfrey, L. (2020). Developing and achieving a Circular Economy in South
Africa – A Strategic Overview. Presentation to WRC Circular Economy
Dialogue, 22 October 2020.
3. DEA (Department of Environmental Affairs) (2011). South Africa’s second
national communication under the United Nations framework convention on
climate change. DEA: Pretoria.
4. GreenCape (2021). Water market intelligence report. Cape Town, South
Africa. Available online
5. EMF (Ellen MacArthur Foundation) (2017). Towards the Circular Economy:
Economic & business rationale for transition.
6. ARUP (2019). Water and circular economy: A whitepaper [online].
7. WRG (Water Resources Group) (2012). Background, impact and way
forward. Briefing report. Available online
8. Delgado, A., Rodriguez, D.J., Amadei, C.A. and Makino, M. (2021). Water in
Circular Economy and Resilience (WICER). World Bank, Washington, DC.
Available online
9. Zvimba, J. (2019). Circular economy model for water and wastewater
management. UJ Workshop, July 2019. Available online
10. DTIC (Department of Trade Industry and Competition) (2017). Industrial
Policy Action Plan 2017/18 – 2019/20. DTIC: Pretoria. Available online
11. DWS (Department of Water and Sanitation) (2018). National water and
sanitation master plan. Version 4.2. Volume 2: Plan to action. Available online
12. WBG (World Bank Group) (2016). High and Dry: Climate Change, Water,
and the Economy. World Bank: Washington, DC.
13. Donnenfeld Z., Crookes, C. and Hedden, S. (2018). A delicate balance: Water
scarcity in South Africa. Institute for Security Studies, African Futures, Paper
13. Available online
14. GoN (Government of the Netherlands) (2021). Valuing Water Initiative. 4
ways the circular economy can help us manage water. Available online
15. NCPC-SA (2020). Impact Report. Available online

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16. Zhi-heng Y. (2012). Study on the circular utilization of water resource in three
industries. IEEE.
17. Veolia (2014). Water at the heart of circular economy. Available online
18. PWC (2018). Closing the loop-the circular economy, what it means and what
it can do for you. Available online
19. Nestlé (2018). Nestlé launches zero water technologies site in Mossel Bay.
Available online
20. DWS (Department of Water and Sanitation) (2013). National Water
Resource Strategy 2 (NWRS2). DWS: Pretoria.
21. WWF-SA (2021). Water doesn’t come from a tap. Available online

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