Africa has emerged as a major player in the global plastics and packaging industry, where plastic goods and expertise are in high demand. Africa's plastic industry is experiencing rapid growth as the continent's demand for plastic goods and machinery continues to rise.
Africa's overall economy is currently expanding. Many African countries have experienced several years of strong economic growth (ranging from 8-12 percent in 2020). Also, the continent is now one of the world's fastest-growing markets for plastic goods and machinery.
The African plastic recycling industry is highly fragmented and fluid. With new players entering and exiting the market on a regular basis. Furthermore, end markets for various grades of recycled plastic are less well established in the region, slowing the industry's growth even further.
This post is specifically for you if you want to start a plastic business in Africa.
1. Learn the Requirements for Initiating a Plastic Business
The first and most basic requirement for starting a recycling plant is a suitable location. It should have enough space to store all waste and waste products, as well as equipment and utilities. The second requirement is a closed space, similar to a factory. But a small room will suffice. It must be at least 200 square feet in size.
The machine with which you will work with your plastic waste is the next necessary requirement. Then there's the plastic waste, which needs to be recycled. You can accomplish this by establishing a network of plastic waste suppliers who can supply the required amount of plastic waste.
Other requirements include:
- A proper electric connection
- A generator in case of an emergency
- Papers from the designated authority for starting a recycling business
- Permission from other selected authorities
- A technical staff that can guide how to recycle the plastic
- A few laborers
- Containers to store the recycled product, and so on.
2. Know the Total Cost Involved
To calculate the cost, add up the costs of all of the above-mentioned machines and equipment. The first is land, the cost of which is determined by the location of purchase. You should buy land on the outskirts of the city to save money. However, you should make certain that you have adequate facilities wherever you have purchased the land.
You can also include the cost of labor and the technician. The other requirement is the money needed to buy plastic ray material. Money will be spent on advertising, packing, transportation, finishing, and manufacturing.
3. Obtain Money for Financing
You cannot start a plastic recycling and manufacturing business unless you have the necessary resources. As a result, you must identify potential sources of funding for leasing the business location.
Also for purchasing the equipment required to run your recycling business, as well as covering initial operational costs before the business becomes self-sustaining. Before submitting an application for a loan, you should contact a few lenders to compare their terms and interest rates.
4. Select the Plastic Kind You are Into
Make a decision on what type of plastic waste you will recycle. Or what plastic product you will manufacture. Begin with a small recycling plant that recycles plastic bottles, small plastic containers, plastic sheets, polybags, and other similar items. You can later be adding or manufacturing PVC pipes, quality cube docks, plastic sheets, plastic tanks, and a variety of other items.
There are various types of machines and methods required to deal with various types of plastic. Some of the modern examples include welding robot for sale. So choose the one that provides the best returns.
5. Market for Recycled Plastic Waste
As non-recycled plastic is much more expensive than recycled plastic, the African market for recycled plastic is enormous. In comparison to fresh plastic, recycled plastic is of lower quality. Your market will be determined by the type of plastic used and the number of times it has been recycled.
This is the first time recycled plastics have been used in the production of high-quality plastic items. While recycled plastics are used to make plastic bottles 2-3 times. The lowest quality recycled plastic is used in the production of disposable plastic bottles, one-time-use containers, boxes, polythene, and the like ones.
The lowest grade recycled plastic can be sold to road departments that use molten plastic instead of bitumen to build roads. As a result, you can build a strong market that can offer you different prices for your recycled plastic. You can sell it to companies that make plastic products, polybag manufacturers, road transportation authorities, and so on.
6. Return on Investment
Because the investment is large, the starting return would not be much higher. You can take out loans to finance your investment. Or finance your business, and even split the cost with partners. If you can reduce your investment in factory setup, you may be able to earn a profit right away. After a few months, you can make a significant profit by selling recycled plastic.
To increase your profits, you can begin producing basic plastic products such as poly bags. Small use and throw away plastic products, and so on. Africa has a massive market. You can contact the road department and request that the recycled plastic of the lowest order be used to build the road, as this will provide you with a good return.
7. Promote your Plastic Business
Once you have everything in place and your business is up and running, you must promote it to potential customers. This can be accomplished by creating a website, brochures, or any other marketing collateral. This includes counties, cities, and municipalities that provide recycling services to residents as well as plastic manufacturing companies.
If you want to help the African environment while also making money, a plastic recycling or manufacturing business could be a great way to get started. You have several options, including collecting plastics and outsourcing processing to a third party. Alternatively, you could purchase processing equipment and do the processing yourself.
Before you begin, it is critical to understand the local African market and requirements in order to determine whether there is a demand for recycled plastics and to run your business in accordance with local regulations. Making your business successful is a no-brainer with these points.