The true cost of solving the plastic waste challenge in developing countries: The case of Ghana

Mismanaged plastic waste is a major environmental concern, especially in countries of the Global South. Municipal solid waste management can not only alleviate environmental problems but also create jobs and promote local economic growth. However, providing appropriate waste management services is costly. The question is to what extent waste management policies that have proven to be successful in other geographies can help solve the challenge in developing countries. Specifically, the economics and financial flows along the value chain need to be known. In this paper, we shed light on these questions by presenting a novel, model-based method to elicit and assess the cost structure of the recycling sector in developing countries. We exemplify our method with plastics waste management in the Greater Accra Region of Ghana—an area particularly challenged by plastic waste. For this purpose, we surveyed over 80 participants of the waste management value chain and combined the data with insights from expert interviews and workshops. Based on this data, we built a bottom-up model with 67 parameters, reflecting all cost positions in the waste management value chain. We found that street waste pickers are the poorest and most vulnerable, earning only a fraction of the already low minimum wage. Middlemen and aggregators, while often being criticized for their earnings, also provide social-security-like services to waste pickers. In addition, formal and informal recyclers differ not only in earnings and size but also in recyclate quality where the informal sector provides higher quality.