South Africa’s circular economy has received a boost through the Petco Empowerment Fund, an initiative designed to help small to medium-sized black-owned recycling businesses grow their operational capacity and scale their impact in the collection and recycling value chain.
Funded by contributions from Petco’s producer members and other benefactors, the fund offers accessible finance and support to B-BBEE Level 1 SMMEs, with the aim of not just sustaining their current operations, but enabling them to expand their reach, improve efficiency, and participate more meaningfully in the recycling sector.
Petco Chief Executive Officer Telly Chauke emphasised that building a sustainable circular economy requires more than keeping businesses at the same level. “We should be creating a pipeline of growth by providing support at all levels, from waste picker projects to emerging industrialists, so they can participate meaningfully in the value chain and strengthen South Africa’s recycling landscape,” said Chauke.
This vision is already taking shape. Several pre-qualifying SMMEs have successfully navigated Petco’s rigorous selection process and are now benefiting from the fund. One such business is Why Waste, a 100% black-owned recycling enterprise in Ladysmith, KwaZulu-Natal, which has been operating for almost three decades.
Why Waste employs 59 people and works with around 230 independent waste collectors, collectively recovering over 6,000 tonnes of recyclables each year. With R1.3 million in grant funding from Petco, the business acquired critical capital equipment, including a four-ton truck, double-axle trailer, and mobile baling machine.
According to Why Waste’s Head of Finance and Marketing Razia Patel, this investment has been transformational. “Before, our processes were constrained by logistics and manual handling. The new equipment allows us to process more recyclables, reduce costs, and improve turnaround times. It has already extended our reach into underserved areas and increased our collection frequencies,” she said.
The mobile baler now enables compaction at source, cutting down transport bulk and allowing for more cost-effective, high-volume collections. The additional truck and trailer have also made it possible to open new rural and semi-urban collection routes where packaging waste previously went uncollected. The grant has had a direct socio-economic impact. More local waste pickers have been onboarded, equipped with collection bags, and supported through consistent buy-back agreements. The business has created new jobs for drivers, loaders, and baling staff, while also linking more local businesses and SMMEs to the recycling value chain.
Why Waste’s long-standing commitment to environmental education, particularly in schools, earned it the 2023 Petco Award in the Environmental and Education Awareness Initiative category. Petco’s General Manager for recycling and collections Samu Mkhize said Why Waste was selected based on its strong track record and growth potential. “Why Waste has inclusive employment practices, a history of community empowerment, and proven operational capacity. Its growing recycling volumes are stimulating the local green economy,” said Mkhize. Looking ahead, Why Waste expects to grow its collection volumes by 20–25%, diverting an additional 1,000–1,500 tonnes of packaging from landfill annually.
For Patel, the funding is more than just financial assistance, it’s a statement of trust. “This support is a vote of confidence in our mission. It allows us to grow responsibly while strengthening our ability to divert valuable materials from landfill and drive sustainable waste management in South Africa.”
The Petco Empowerment Fund is proving to be more than just a grant-making vehicle, it’s a catalyst for scaling up transformation, enterprise development, and the long-term sustainability of South Africa’s recycling ecosystem.
