I am back again with another in-depth look at the world of green entrepreneurship. For those new to my blog, I run a recycling business in Nigeria, where we tackle plastic waste in an effort to create a circular economy.
One thing I have learned from running a recycling business in Nigeria is that recycling is not for the faint-hearted. It is a boring business. It takes hard work, patience, constant headaches, and a deep sense of purpose to turn plastic waste into something meaningful and profitable.
For the past two years, my team has been on a sustainability mission. We collect, sort, and bale PET plastics collected from households, individuals, organizations, institutions before selling them to manufacturers who give the plastic a second life.
Over the course of 2 years, we have proven the model works, established collection networks and established partnerships with manufacturers. This has culminated in over 674,103 kilograms of plastics collected and processed with 28 green jobs created.
We are at a critical juncture now where we must scale to make massive environmental impact. Scaling requires strategic capital to move to a thriving business.
I will share a detailed plan of how a 36million naira (24,000 USD) could improve our recycling business. It is a detailed plan for growth and profitability.
The Reality of our present position
We have been hit by the hard truth that growth requires real investment.
Our current operations run on modest resources
A team of collectors
A team of sorters
2 baling machine (A foreign and locally fabricated one)
Reliable manufacturers (offtakers) who buy our baled plastics
The problem is demand is growing with manufacturers needing more volume and the need for rPETS. We need to scale because inefficiency limits our impact and profit. We are leaving tonnes of recyclable waste and money on the table because we lack the machinery to process materials into higher value products.
That’s where the 36 million (24,000 USD) investment comes in.
What 36 million naira (24,000 USD) Could Do
This investment will change how we operate from a local recycling company to a fully-fledged recycling hub. We want to move from being a business to an enterprise and have many units under us.
Here is a breakdown of how we would allocate the funds to create a sustainable, high-growth enterprise.
Crushing Line
This is the game changer. Instead of having a single product (Baled plastic) in the market, we can have clean PET flakes. PET flakes will triple our revenue from the same amount of plastic due to the higher selling price.
It means we can collect more materials, process them efficiently, generate more revenue and create more green jobs. It also makes us a more valuable partner to larger manufacturers like Coca Cola, Seven-up bottling company that uses these flakes to make new products.
There is also the export capability for flakes which makes us earn in foreign currency.
Expansion of Collection Points
A new and efficient machine means we need raw materials to feed it. We will set up 10 new collection hubs in strategic locations around the state and neighboring areas.
Each collection hub will be equipped with weighing scales and storage to make it easier for informal waste pickers to supply us in a decentralized way. Each one of these hubs means more jobs, cleaner environment, more feedstock, and steady income for the undeserved.
We will also get an electric powered delivery truck to collect the materials and deliver them to our main recycling hub for further processing.
Innovation
With our blockchain-based reward system, we can track collections transparently and reward community members who bring in recyclables. We will also set up an R&D department to innovate around creative uses of plastic waste and how to streamline collection. One of our main goals is development of reverse vending machines for plastic waste. This can easily be achieved with local resources.
Working Capital and Manpower
Scaling mean hiring and training new staff, machine operators, sorters, and mechanics. We are not just investing in machines and raw materials but also in our people.
The increase in material needs means additional work capital to cover material purchase and necessary utilities during the ramp-up phase.
The Ripple Effect
This investment is not just about us alone, the ripple effects are significant
Environmental – We could realistically process over 1,200 tonnes of plastics annually from our current 350 tonnes.
Revenue – We could achieve over 800,000 USD in revenue due to the flakes price. Currently, that is around 750 USD per ton
Social – The increased scale of operation means new jobs will be created. We can easily double our workforce and create additional 30 direct jobs. We also empower informal waste pickers via our new collection hubs.
Economic – We are contributing to a cleaner and healthier Nigeria for all while also creating jobs in the process.
Return – The increase in revenue means our net profit margin of 20% can be improved on and investors can get more returns based on their percentage ownership.
Collaboration
We are actively seeking the right partners to collaborate on this. We have the expertise and a solid foundation. There is huge potential in the green economy, and you can be a part of our high-growing recycling company.
36million naira (24,000 USD) is not just capital but the difference between 200,000 USD and 800,000 USD revenue, 30 tonnes and 100 tonnes monthly collection, baled plastics and PET flakes
I would love to hear from Hive Community. Does this appeal to you? What questions do you have? Do you think a DHF proposal can work where returns are used to buy HIVE and burn?
You can also reach me on Discord with my username .onedrop for any additional information you need.