Fibre Circle Empowers SMMEs

Fibre Circle is the producer responsibility organisation (PRO) for the paper and paper packaging sector. It helps their registered producers comply with the Extended Producer (EPR) legislation and support the broader value chain from a linear economy to an inclusive circular economy.

The organisation has taken proactive steps in its EPR programme by taking a small cohort of entrepreneurs from the SMME sector and, with a hands-on approach, is assisting them in developing their businesses.

The two-day SMME Development Workshop programme was held at the Bryanston Country Club on the 6th and 7th June.

The entrepreneurs participating in this introductory programme have been in the SMME space for up to five to ten years. We aim to help them with their growth and scaling their business by opening new markets and looking at ways in which we can support their businesses to scale.

The talks centred on topics requested by the SMMEs, such as community development, local economic development, ways to merge technology with waste and foster affordable recycling for producers, and dealing with the structural issues that waste collectors face daily. 

Ashleigh Dlamini, project consultant for Fibre Circle, explained why the project is unique. “We have a small cohort of nine SMEs, and we’ve kept it deliberately lean because the idea is to understand the challenges in their space and respond quickly to them. Over time, we can replicate what we’re doing at scale from an informed position.

“All the entrepreneurs are part of the waste management value chain, and many are buyback centres. However, some participants also do other things within the value chain.”

Ms Dlamini mentioned a company that works to provide waste reclaimer support services in different forms. After soliciting corporate sponsorship, the company set up a camp for waste reclaimers where they have access to water, solar power, and an on-site bailer. The bailer enables the reclaimers to bail their recyclables for onward sale at a higher price.

Many businesses Fibre Circle is talking to and working within the buyback space are thinking further by transitioning into manufacturing or beneficiation. “They are starting to look at vertical and horizontal integration opportunities in the same business, which we think is great in terms of expanding or expansion.” 

Fibre Circle initiated research projects at Stellenbosch and the Witwatersrand universities, where the graduates work towards their master’s or PhD degrees. This work is co-funded by Fibre Circle and the DSI as part of the third round of the Sector Innovation Fund.

“Our research activities aim to facilitate the collection and recycling of fibre-based products, contribute to the circular economy by diverting paper and paper packaging from landfills, and support and create secondary markets,” said Ms Leeuta.

One research programme, which discussed recycling potato sacks and label-backing paper back into the value system, found that the label-backing paper is coated with glycine, which has strong fibres. 

“About two and a half years ago, we conducted a study to see if we could include label-backing paper in the mills’ recycling processes. We conducted lab-scale testing on it and wrote a report.”  As a result, one South African mill in the project trial was successful and now incorporates label-backing paper in making tissues.”

Ms Leeuta’s advice to the paper and packaging industry is to see the EPR Scheme as a potential to become a change agent for SMMEs within its value chain with a deliberate, informed, and results-orientated approach.

For more information visit https://fibrecircle.co.za/ 

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Photographs

The two-day SMME Development Workshop programme was held at the Bryanston Country Club on the 6th and 7th June.