Plastic pollution is an environmental issue and a major socio-economic and development challenge. About 165 million tons of plastics are expected to reach their end-of-life in African countries in the next decade. It is imperative to focus on micro, small, and medium-sized enterprises (MSMEs), which comprise a majority of businesses and a large portion of the informal sector, which includes Africa’s young workforce, to tackle plastic usage and waste. Amidst their economic impact, there’s an imperative for MSMEs to prioritize environmental stewardship, especially concerning plastic usage and its ecological ramifications.

The escalating alarm over plastic pollution has surged to critical levels, sparking urgent appeals for action from policymakers, governments, and industry pioneers. The United Nations Environment Program (UNEP) estimates that 19-23 million tons of plastic waste leak into aquatic ecosystems, polluting lakes, rivers, and seas yearly. Despite their smaller scale than corporate giants, MSMEs yield a significant share of plastic waste. This issue demands a comprehensive strategy integrating regulatory structures, financial incentives, and innovative business paradigms to nurture sustainable practices.

One emerging solution gaining momentum is the Plastic Credit Model (PCM). This framework provides a structured avenue to encourage micro and small businesses to curtail their plastic footprint. By accruing credits through responsible plastic usage, waste reduction, and recycling endeavors, MSMEs can contribute to reducing plastic waste. 

Plastic credits are a market-based approach to reducing plastic waste, creating a financial incentive for businesses to reduce their plastic use and increase the use of more sustainable alternatives. At its core, the Plastic Credit Model represents a paradigm shift in how businesses perceive and address plastic waste. It embodies a strategic blend of environmental consciousness and economic pragmatism, aligning with the growing demand for companies to integrate sustainability into their operations. By embracing this Model, MSMEs showcase their commitment to responsible resource management and contribute to the broader goal of plastic waste reduction.

The Plastic Credit Model operates on a simple yet powerful premise. Businesses earn plastic credits by implementing measures that reduce their plastic footprint, such as utilizing eco-friendly packaging, promoting reusable products, or supporting recycling initiatives. These credits will be tangible proof of their environmental efforts, like carbon credits in the context of carbon emissions or similar to earning frequent flyer points. The goal of the Model is to promote a reduction in plastic usage.  

How would the plastic credit model work for MSMEs?

• Small businesses that reduce their plastic use or find ways to recycle can earn plastic credits. 

• Credits collected can be used in different ways, for example, towards tax credit and with suppliers as credit. 

• Annual awards can be granted yearly to small businesses with the most credit, which will help encourage other small business owners to want to increase their tax credits. 

The Model would require a robust plan and implementation from governments partnering with the private sector, including community organizations and Non-Governmental Organizations. This article details recommendations aimed at cutting MSMEs’ plastic usage. The recommendations can empower governments, industry frontrunners, and policymakers to lead the transition toward a circular economy and enact substantial change. We can mitigate the adverse effects of plastic pollution on our planet while leveraging MSME strengths. 

Numerous organizations in Africa currently collect and recycle plastics, empowering individuals to make a difference. Organizations that governments can partner with to implement the Plastic Credit Model. Upcycle in Uganda, for instance, transforms the waste crisis in Africa into employment opportunities for marginalized people. They repurpose plastic waste into products of value, holding polluters accountable for environmental damage.

In South Africa, SAPRO procures sorted, baled end-of-life plastics and re-processes them into raw material. Their waste pickers program allows individuals to earn their living through scavenging from disposed goods and garbage. There is also ‘Scrapays’, a company in Nigeria that combines recycling, technology, and money to allow businesses and households to sell their recyclable waste conveniently and profitably. These eco-friendly firms are about more than just managing plastic pollution. They also empower individuals and communities to be part of the solution to plastic pollution. 

Recommendations for Plastic Waste Reduction

As governments worldwide navigate the landscape of plastic use and management, comprehensive policy recommendations are essential to drive meaningful change and foster a sustainable future. Here, we outline strategic interventions aimed at partnerships with public & private firms, funding innovation, establishing standards, strengthening regulatory oversight, and promoting sustainable procurement.

Implementing Collection and Recycling Initiatives: This is not a task for one entity alone. It’s about establishing collection points for plastic waste and partnering with recycling facilities, a collaborative effort that promotes circularity and earns credits for contributing to plastic recycling efforts.

Investing in Community-Based Projects: Support community-based plastic waste management projects, such as clean-up drives, awareness campaigns, or empowering waste pickers.

Supporting Public Sector Programs: Public sector initiatives are vital for supporting the development and scaling of innovative plastic substitute materials that reduce reliance on traditional plastics.

Providing Funding or Incentives: Offering direct or indirect financial support, such as tax incentives, encourages startups and large companies to invest in sustainable material research and development, driving innovation.

Establishing Clear Standards: Creating clear standards and certification schemes for plastic materials can ensure transparency and reliability in handling the violation of eco-friendly standards.

Scaling Infrastructure: Investing in infrastructure for collecting, sorting, and processing plastics supports waste management and can keep plastics out of landfills. 

Strengthening Regulatory Oversight: Ensuring consistent implementation and enforcement of plastic regulations at all government levels can motivate people to obey recycling rules. A special court or agency dedicated to reviewing and penalizing frequent violators will convey the government’s seriousness about tackling plastic waste.

A vital aspect of this Model would be educating MSMEs about its objectives and benefits. Providing guidance and training sessions on sustainable practices and plastic waste management can empower MSMEs to make informed decisions and take proactive steps. Additionally, governments, NGOs, and financial institutions can play a pivotal role in providing financial support mechanisms and incentives for MSMEs to invest in sustainability. Financial support can include grants, subsidies, low-interest loans, or tax incentives tailored to promote their participation. 

When implemented cooperatively and cohesively, these policy ideas lay a strong foundation for addressing issues with MSMEs’ plastic usage and waste. They not only stimulate innovation but also encourage responsible production and consumption behaviors. The potential for a more sustainable and environmentally friendly future is within our reach. Still, effective collaboration between governments, industry players, and micro and small businesses is required to adopt and implement these ideas. 

The Plastic Credit Model stands out as a realistic answer and a ray of hope in the search for sustainable practices for MSMEs, most of whom operate in Africa’s informal sector. This Model provides governments and MSMEs with a systematic and practical framework to reduce their plastic footprint, obtain environmental credits, and significantly contribute to environmental conservation. If appropriately implemented, it could be a win-win model. The advantages are many for the government and the people. However, strong policy interventions and encouraging measures are necessary for the Model to reach its full potential.

Conclusion

It is of utmost importance to restate the huge role of MSMEs in combatting the plastic pollution crisis and forging a more sustainable future. The Plastic Credit Model initiative can spur a movement in this area. 

Policy interventions are crucial in supporting the widespread adoption of the Plastic Credit Model. Advocating for funding innovation, establishing clear standards, strengthening regulatory oversight, and promoting sustainable procurement are key pillars that can propel the transition toward a circular economy.

We invite African governments and policymakers to consider and actively embrace the Plastic Credit Model. By collaborating with MSMEs, governments can forge beneficial partnerships, share knowledge, and leverage our collective strengths. This collaborative effort can drive significant impact, create market incentives for sustainable practices, and pave the way for a more sustainable and resilient future in which we all have a stake.

Participating in the PCM also benefits MSMEs. Besides saving the planet where everyone lives, adopting the Plastic Credit Model can draw investors and eco-friendly customers, opening new markets. Today’s consumers place a high value on sustainability, so companies that sincerely commit to environmental stewardship stand out from the competition.

Given the urgent need to address the global plastic pollution crisis, it is crucial that governments swiftly involve MSMEs in waste management and plastic reduction initiatives. With MSMEs constituting over 90% of all firms, their active participation is not just beneficial but essential for environmental stewardship, economic prosperity, and societal well-being. To effectively combat plastic pollution and pave the way for a greener, healthier future, the involvement of micro, small, and medium-sized enterprises is of utmost importance, with far-reaching societal benefits.

In the global fight against climate change, MSME’s adoption of plastic pollution reduction measures can emerge as pivotal agents of change, embodying innovation, adaptability, and entrepreneurial spirit. 

Written by:

Staff Writer