Socio-economic assessment and feasibility study on - Öko-Institut eV

<strong>Socio</strong>-<strong>economic</strong> <strong>assessment</strong> <strong>and</strong> <strong>feasibility</strong> <strong>study</strong>
on sustainable e-waste management in Ghana
August 2010
� As most of the workers engaged in e-waste recycling in Ghana have no financial
reserves, the business model needs to ensure steady <strong>and</strong> reliable cash flow to the
involved workforce. Thereby, the time lag between pre-processing of e-waste in Ghana
<strong>and</strong> the final marketing of the resources is critical. It is estimated that the times for the
collection of sufficient export volumes, the transport, the sampling <strong>and</strong> the refinery will
sum up to several months. For a workforce that depends on rapid cash flow, this time
span represents a severe obstacle.
� Besides paving the road for the export of certain e-waste fractions, the business model
must also ensure a steady know-how transfer to the recycling sector in Ghana. This
know-how must cover issues, such as information on values contained in the various ewaste
fractions, the best treatment options for hazardous components, information on
changing material compositions <strong>and</strong> measures to further increase the <strong>economic</strong>,
environmental <strong>and</strong> social benefit of the recycling operations.
Based on these minimum requirements there are two major types of possible business
models:
Model 1: Indirect co-operation with one or more intermediaries
An easy way to overcome the limitations of the informal sector would be a business model
that installs one or more intermediaries between the informal e-waste sector <strong>and</strong> the
pyrometallurgical refineries. Such intermediaries must be capable of fulfilling the
requirements listed above. Thereby, they would act as formal joint between the informal ewaste
sector in Ghana <strong>and</strong> the refining companies. Nevertheless, such a business model
might be critical in situations where intermediaries have a monopoly position <strong>and</strong> can control
the local prices for pre-processed e-waste. From other resource markets, it is known that
many intermediaries dealing with informal sector activities use such monopoly positions to
bring down prices <strong>and</strong> to maximise their own profit margins (Wagner et al. 2007).
Furthermore, intermediaries are not necessarily interested in comprehensive know-how
transfer as they are themselves not involved in e-waste pre-processing <strong>and</strong> therefore do not
have to fear negative health <strong>and</strong> safety impacts themselves. Additionally, intermediaries
might be tempted to focus on high grade precious metals fractions only, while neglecting
other hazardous fractions with lower intrinsic value. Although such ‘cherry-picking’ might be
suitable in the initial phase to get the business model started, it has long-term side-effects as
low value <strong>and</strong> hazardous e-waste would further accumulate in Ghana.
Model 2: Direct co-operation between small-scale recyclers <strong>and</strong> refineries
By establishing a direct link between small-scale recyclers in Ghana <strong>and</strong> pyrometallurgical
refineries, some of the drawbacks <strong>and</strong> risks associated with intermediaries could be avoided.
Ideally, such direct links would be established on the basis of a cooperative or communitybased
approach within the Ghanaian e-waste sector. Such an approach should be capable
of managing the formal <strong>and</strong> administrative business requirements, as well as caring for a fair
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