Urbanisation is Driving the East African Solid Waste Management Market, Finds Frost & Sullivan

CAPE TOWN, South Africa, February 10 - Population growth and rising urbanisation are increasing waste production
in East Africa. Since local authorities are incapable of handling most solid
waste material, this opens up opportunities for the private sector. The East
African solid waste management market is undergoing a dynamic phase of change
with the local authorities enforcing new legislation that also involves
private investors.

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New analysis from Frost & Sullivan (www.environmental.frost.com),
East African Solid Waste Management Market, finds that the market earned
US$32.9 million in 2008. Despite the current economic hardships faced by most
African countries, the market is expected to continue growing at a compound
annual growth rate (CAGR) of about 7.0 per cent from 2008 to 2015.

If you are interested more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"Rapid urbanisation and higher standards of living have been the major
drivers of growth in this market," says Frost & Sullivan Research Analyst
Derrick Chikanga. "More solid waste is generated by high income households in
their daily activities."

The East African region is currently experiencing a growth rate of
approximately 7.1 per cent per annum and about 34.5 per cent of the region's
population resides in urban areas. The urban population generates the bulk of
the solid waste material in this region.

However, the inability to collect refuse collection charges from
households is a major obstacle to the development of this market. While the
high-income areas are willing to pay for improved services, the low-income
areas receive the least attention, as most households do not have the
financial means to meet even the minimum tariffs charged by local
authorities. There is also a lack of understanding and prioritisation amongst
people towards refuse collection.

"The level of awareness on the need to pay refuse collection charges is
low," explains Chikanga. "Residents prioritise other services such as water,
energy, transport and healthcare."

Despite the challenges due to non-compliance by households, the market
continues to be promising. Some companies have implemented a competitive
pricing structure by charging a range of tariffs to different end-user groups
of waste collection services. Lower tariffs encourage low-income households
to use waste management services, enabling these companies to capture the
non-paying low-income areas and generate more revenues.

"Strategic partnerships between private companies and local authorities
are gradually starting to emerge," concludes Chikanga. "Such partnerships
facilitate the sharing of solid waste management and financial
responsibilities between the local authorities and private participants."

East African Solid Waste Management Market is part of the Environmental
Growth Partnership Service programme, which also includes research in the
following markets: South African Solid Waste Management Market, Southern
African Waste Management Market, South African Waste-to-energy Market, and
South African Hazardous Waste Management Market. All research services
included in subscriptions provide detailed market opportunities and industry
trends that have been evaluated following extensive interviews with market
participants.

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                   East African Solid Waste Management Market
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    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com