Modes of collaboration between formal and informal sector

This section of Module 4 are about the number of different ways in which formal management of e-waste and informal stakeholders can collaborate.

Modes of collaboration

The are a number of different ways in which formal management of e-waste and informal stakeholders can collaborate.
Partnerships between formal and informal actors should be very specific to the local conditions.
Partnerships reflect the diversity of value chain structures of different countries.

Dedicated collection agencies who purchase e-waste from informal collectors and channel them to authorized (formal) recyclers.
Those agencies maintain direct relationship with informal collectors.

Formal and informal stakeholders collaborate directly together.
Informal collectors sell their collected waste directly to the authorised (formal) recyclers.

India has a system type of partnership involving an intermediate (Karo Sambhav).

Producers pay the Producer Responsibility Organization (PRO) to meet the collection targets.
The PRO collects the waste by cooperating with the informal sector stakeholders around the country.
Sufficient financial resources are ensured by producer’s financial contribution, as part of their obligation stated in the 2016 E-Waste Rules.
Karo Sambhav also used the help of an NGO experienced in improving livelihoods of waste-pickers by organizing them in collective groups.

Karo Sambhav is the intermediate between formal and informal stakeholders.

Karo Sambhav has so far managed to engage 5000 aggregators and collectors and collect 3000 tons of WEEE.

Peru has an Extended Producer Responsibility (EPR) system. This set targets of collection and treatment of e-waste for producers of EEE.

Legislation makes no mention of collaboration with the informal sector.
In response to legislation, a PRO was established (by RLG group).
RLG made an agreement with EMAUS (non-profit association of previously informal collectors).
The collaboration with informal actors is facilitated by the formalized structure of EMAUS.
RLG pays EMAUS for each kg of e-waste collected.
RLG takes care of the logistics and sends the e-waste to the appropriate treatment facility.

EMAUS: previously informal collectors

RLG is the intermediate between formal and informal stakeholders.

In the first year of the cooperation, RLG collected over 150 tons of e-waste through EMAUS.

Hinckley is a private player.

The majority of Nigerian’s e-waste recycling takes place in the informal sector.
Informal workers are often very organized and have a large nationwide network.
National regulation including implementation of an EPR system has suffered delays and is not yet implemented, leaving the informal sector in a bad state for health of workers and the environment.
Despite legislative delays, some private sector players such as Hinckley, have taken proactive measures.
Hinckley facility has a large manual dismantling team and aims to embrace the informal sector.
Hinckley hold trainings and awareness campaigns on health and safety requirements and
This has made Hinckley a trust partner and more and more collectors join Hinckley.
The hope is to move joining informal members towards formalization.

Future EPR system has suffered important implementation delays.

Desco is a Private recycling business

Since the year 2000 South Africa has partnerships between formal and informal waste stakeholders.
Desco Electronic Recyclers is a recycling business which makes efforts to incorporate informal workers into the business.
With this partnership, Desco outsources the dismantling operation to those workers.
Desco hires subcontractors to provide labour, the material remain on-site and owned by Desco.
Waste is dismantled and processed by the subcontractor.
Subcontractor sign contract with Desco agreeing to follow environmental, health and safety rules.
Employees are paid at least the minimum wage. Desco assists with training, equipment such as PPE and dismantling tools.

Financed through sales

50% of the partnerships made with the informal sector where successful. The other 50% failed due to disagreements between the parties.

Ghana has implemented a more direct system, without intermediates like the other case studies.
Ghana adopted an Act setting a framework for collection of electronics.
The Environmental Protection Agency of Ghana developed technical guidelines on environmentally sound e-waste management.
Those guidelines also take into consideration local e-waste sector which is by 95% informal.
Different activities along the value chain are separated into 5 “Tier”.
Collectors, which are mainly informal workers, must register, which was made possible for everyone that collects, sorts or consolidates e-waste within the technical guidelines.
Ghana’s decision to fraction the value chain and detail specific guidelines for each step, provides a solid framework for partnerships between different actors.

The further the process is, the more requirements are needed.

Read supporting information here.