ACTION

BRIEF: Pilot Project on Paper Recycling

PROJECT TITLE: IGNIS (Addis Ababa, Ethiopia)

CODE: IGNIS-AB5
CROSSCUTTING TOPIC(S):
RESSOURCES
CAPACITIES

SITUATION
Before establishing a paper recycling manufactory in 2005, its
operator worked for a local NGO and as a translator (Amharic-
English). In line with his occupation for that NGO he attended a
course on Community Development, where handmade paper
production was demonstrated. Thereupon, he started thinking
about establishing his own business.
Prior to plant implementation, he completed a self-funded training
on handmade paper production in Uganda to further improve his
knowledge and to learn, which technical devices will be required. In
parallel, he investigated the market for paper-based products in
Addis Ababa to discover, if his business idea might be profitable.
When the decision to set-up the business was finally made, he saved
money to obtain the main devices. During the first six months, after
implementation, he proceeded with his work for that NGO and as a
translator to 'survive' the start-up phase and to have money for
further improvements.

Figure 1: Paper Recycling Manufactory

The paper recycling manufactory consists of a production centre,

where waste paper and other wastes (i.e. banana leafs, etc.) are
converted into paper sheets, and of a converting centre, where the
paper sheets are refined into the final products (postcards, photo
frames and albums, notebooks, coffee bags, etc.).
The paper recycling project was identified during the IGNIS pre-
phase and defined as IGNIS pilot project to further improve it and to
demonstrate that waste material can be a source for income
generation. Further it is intended to demonstrate how a well-
managed and organised project can grow and improve over time.

OBJECTIVES / APPROACH / RESULTS
The overall objective was to analyse the paper recycling production
process from the waste resource to the final product in terms of
material flow, technology, profitability, occupational safety and
health, environmental as well as social and socioeconomic aspects.
The obtained results were used to optimise and improve the pilot
project through supporting the involved stakeholders to understand
their business in detail and to show them the importance of well
founded detailed knowledge on the applied technology as well as on
existing interactions to other sectors and stakeholder groups (e.g.
value chain, market).
As the pilot project's manager and staff were involved into all
analyses and as they understood its significance, they now perform
the analyses on regular basis by themselves.
Finally, by a vertical and horizontal evaluation of the different pilot
projects it is possible to assess the potentials as well as the
constraints of different technologies and approaches to improve or
at least to advance the existing waste management system in Addis
Ababa.

Figure 2: Products of the Paper Recyclings Manufactory

Figure 3: Wooden mallet, introduced after training in India

Paper quality

before

after

Figure 4: : Paper quality before and after training in India

FUTURE MEGACITIES Research for Sustainable Development of the Megacities of Tomorrow -

Energy-
and climate-efficient structures in urban growth centres (www.future-megacities.de)

ACTION BRIEF: Pilot Project on Paper Recycling

IMPACTS
Combining all the different analyses, the operator got a better understanding of his business. By evaluating the achieved
results, required improvement measures could be identified and ranked due to their importance and need.

PURPOSE:

Improvement of business performance through the measures identified by comprehensive technology,

process and market analysis.

SHORT-TERM IMPACT (VERIFIED)

LONG-TERM POTENTIAL (ANTICIPATED)

ECOLOGY

With the paper recycling pilot project it could

already be demonstrated that waste material
can be a source for income generation, while
its utilization does in addition contribute to
local environmental and global climate
protection.

In Addis Ababa most of the waste paper is

burned or is going to landfill. Thus, the paper
recycler is already contributing to the climate
protection aim of IGNIS, even if, due to the
comparable small input, that positive effect is
tiny. But if the project will grow over the next
years that benefit will grow in parallel.

ECONOMY

A detailed profitability analysis was

completed, showing, where the main cost
drivers are situated, how much money should
be saved to cover the maintenance costs and
how the business could grow and up-scale
itself over time. In addition, a market study
was run to identify the most promising
products and the market's demand.
The first improvement measure was a
training on handmade paper production in
India. Thereupon the production process was
slightly modified, what finally had a
tremendous impact on the paper quality (cp.
Fig. 4) and thus on the market penetration
and overall profitability of the project.

According to the completed market study and

the identified technology and process
improvements, it is expected that the paper
recycling business will be able to multiply its
input and consequently the outputs (products)
on the mid to long term. If the operator does
apply the necessary measures and actions step
by step, keeping the focus on the market, the
pilot project should grow and further develop
sustainably.

SOCIAL /
CULTURAL /
POLITICAL

Beside the analyses, which are directly

connected to the pilot project, the socio-
economic effects were also assessed to
understand the value chain, which is linked to
the business and to evaluate the resulting
effects and impacts.

Awareness raising as an effect of the pilot

should not be under-estimated. The paper
recycling manufactory as well as the other IGNIS
pilot projects are already demonstrating that it is
possible to generate an income and thus to
establish a business by utilising wastes.

LESSONS LEARNT / RECOMMENDATIONS
Applying the example of the paper recycling manufactory it could be shown, that it is possible to utilise waste to
establish a business. Together with the operator, five persons are employed by the company. By investing about 10,000
ETB (approx. 570 USD), per annum 43,300 ETB (approx. 2,500 USD) can be distributed to the staff (including the salary of
the operator). And even by considering the maintenance and reinvestment, a profit of about 56,000 ETB per year
(approx. 3,200 USD) can be achieved.
After two years of IGNIS, the paper recycling manufactory transformed from informal to formal business without any
direct financial support.

AUTHOR
IZES gGmbH, Mike Speck, speck@izes.de







Webpage: http://www.ignis.p-42.net/index.php?page=paper-recycling Date: 14/08/2012

FUTURE MEGACITIES Research for Sustainable Development of the Megacities of Tomorrow -

Energy-
and climate-efficient structures in urban growth centres (www.future-megacities.de)