Although still relatively young in South Africa, the economic contribution to the country through job creation in the used oil sector is looking very promising, according to a study commissioned by the Recycling Oil Saves the Environment (Rose) Foundation.
A survey commissioned by the foundation shows that a significant number of local jobs have been created through the recycling of used oil.
According to the research house conducting the study, the Research LampPost, the results indicate that about 1 300 staff – ranging from drivers, labourers and administrators, to operators and managers – are employed in the sector.
Data from 84 licensed collectors, 11 licensed processors and 13 licensed bulking points, was included in the study.
This was then used as a basis to estimate the total employment contribution for the collection and processing of an estimated 120-million litres a year of used oil in South Africa.
Demographically, the employment profile is predominantly male, at 85%, and African, at 64%.
In larger operations, the top management is mostly African, at 37%, and white, at 34%. In smaller businesses, the sole operators are 41% African, 41% white, 12% Indian and 6% coloured.
The majority of collectors and processors are situated in Gauteng, where nearly 50% of the oil is collected. The bigger collectors collect 75% of the used oil identified in the study.
The study results show the used oil industry is a highly competitive business, with most collectors saying the biggest challenges they faced were fierce competition and pricing, which, in turn, affected their profit margins and sustainability.
Despite this, collectors continue to operate and many of the part-time collectors show entrepreneurial flair in combining used oil collection with other services such as selling automatic lube systems, fire suppression, garage equipment and hydraulics, hazardous waste removal, scrap metal collection, cleaning wash bays and collection and processing of plastic oil bottles and used oil filters.
“This is a recycling success story – the used oil industry is a sustainable sector that not only employs many people but also effectively supports their dependants,” commented Rose Foundation CEO Bubele Nyiba.
Nyiba further stated that recycling could only work if it is economically sustainable. Therefore, the foundation’s challenge is to ensure the environmental imperative is supported by an effective recycling business model.
“We offer support in the form of training, audits, equipment and incentives, and we work with all the lubricant industry stakeholders towards continuously increasing recycling volumes.”