A synergy between sustainable solid waste management and the circular

economy in Tanzania cities: a case of scrap metals trade in Arusha city

Clashon Onesmo (  [email protected] )
University of Dar es Salaam https://orcid.org/0000-0001-5732-2703

Research Article

Keywords: Sustainable solid waste management, Cities, Circular economy, Scrap metals, Trade, Arusha city

Posted Date: April 26th, 2023

DOI: https://doi.org/10.21203/rs.3.rs-2789097/v1

License:   This work is licensed under a Creative Commons Attribution 4.0 International License. Read Full License

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Abstract
The increased demand for secondary materials, particularly scrap metals, in cities due to development activities in both emerging economies and developing
countries has increased the demand for recycling materials. It accelerated the growth of the circular economy and climate-smart development. This paper
investigated the synergy between sustainable solid waste management and the circular economy in Tanzanian cities by examining the scrap business’s
categories, quantity, market, and nature and the scrap business’s environmental benefits in Arusha. The study found that iron steel, cast iron, and aluminum
were the most common scrap metal recovered and traded in Arusha. Offices and institutions, households, and garages were the primary sources of scraps.
Over 314 tonnes of scrap metal were traded monthly in the city. The scrap business helped the steel industries save 300 tons of iron ore, 164 tons of coal, and
64 tons of bauxite while lowering their monthly energy consumption by 56%. Scrap metal trade contributes significantly to recycling, climate-smart, circular
economy, and improving livelihoods. As a result, we call for a synchronized sustainable development and solid waste management system that connects
product design, development manufacturing, and end-of-life products to improve the circular economy.

Introduction
According to the Global Footprint Network, the current human use of global resources is 1.5 times the generation capacity, with cities consuming 75% of them.
The expanding global economy, rising population, and urbanization strain cities and add pressure on resources (C40Cities, 2016; Zaman, 2016). The urban
population will account for 70% of the global population by 2050 (European Union, 2020; OECD, 2021; Wee et al., 2019). As a result, cities will increase
consumption, resource demand, and waste generation (Rattan, 2015). Raw materials demand is also expected to quadruple by 2050 (UNEP, 2019; World
Economic Forum (WEF), 2015, cited in EIT, 2018). The consumption of resources in urban areas will increase from 40 billion tons in 2010 to 90 billion tons in
2050. Construction is the primary consumer, particularly in emerging economies and developing countries like sub-Saharan Africa (UNEP, 2018). This will be
enhanced by about 3 billion people entering the middle class (OECD, 2021; Waughray, 2014). Most will come from developing countries where population,
urbanization, and development are accelerating (World Bank, 2012; Wughray, 2014). This is a call to reconsider the current linear development path, in which
raw materials end up as waste after extraction, processing, and manufacturing. If Sustainable Development is to be realized, a different developmental
approach, which is more circular or cradle-to-cradle for raw materials, is required (OECD, 2021; UNIDO, 2019; EuRIC, 2021).

Because the development process consumes resources, generates solid waste, and degrades the environment, cities must consider an alternative and
sustainable approach to the conventional one to meet developmental needs (Fedotkina et al., 2019). This highlights the importance of rethinking the current
rate of using natural resources to meet development demands (EOROFER, 2020; OECD, 2021; UNIDO, 2019) and how we manage waste while achieving
sustainable development goals (SDGs). This is a critical challenge, particularly in developing countries where the circular economy concept is still infancy.
Waste management faces various challenges, and more than 90% of its waste is disposed of (World Bank, 2018; Zaman, 2016) in these countries. They also
relied heavily on natural resources for development.

According to the 2018 circularity report, only 9% of the global economy is circular. A circular economy is an economic model in which planning, resourcing,
procurement, production, and reprocessing are designed and managed as processes and outputs to maximize ecosystem functioning and human wellbeing
(Murray et al., 2015). The circular economy concept is considered an environmentally friendly green development model and an alternative to the linear model.
It responds to resource scarcity, pollution, and climate change challenges (EuRIC, 2021; EUROFER, 2020), improving people’s wellbeing and climate change
challenges. This will help to decouple economic growth from scarce and costly resources while protecting the environment (Chandrappa & Das, 2007). This
means that cities, especially in developing countries, should promote sustainable solid waste management practices such as sorting, recovery, recycling, and
reuse of solid waste, such as scrap metals (UNEP, 2010; Zaman, 2016; Bawa et al., 2020; ISWA, 2009). Repair, maintenance, composting, remanufacturing,
reusing, and recycling of scrap materials will be opportunities as the circularity system facilitates sustainable solid waste management practices (Wijkm &
Sknberg, 2017). Metals are the world’s most recycled materials. In 2019, 490.98 million mt (32%) of the 1532.51 million mt of steel produced globally were
from scrap materials (EuRIC, 2019).

The demand for scraps, particularly metals, has surged internationally over the past ten years (Aparna & Piyali, 2015). From 2003 to 2016, there was a 30%
growth in the international scrap trade (Yamaguchi, 2021). Metals, papers, and plastics comprise the most traded waste and scraps in the G20 members (85%,
10%, and 5%, respectively). Over 90% of stainless steel is currently recycled worldwide. For instance, in 2017, more than 600 million tonnes of steel scraps
were recycled globally (EuRIC, 2020). In contrast, over 160 million tons of steel, or 56% of all steel produced in Europe, was manufactured from scraps
(EUROFER, 2020). Rising metal prices locally and internationally have impacted both the growth of the scrap metal industry and the people involved (Moyes,
2005). Metal recycling and scrap metal sales are crucial to green economy activities that support the SDGs. Recovering solid waste and utilizing secondary
materials fosters economic incentives while preserving the environment (Bawa et al., 2020).

Recycling and material recovery rates vary not only by country but also by the waste stream. Because they are used in relatively simple product groups or are
easily recyclable, glass, paper, and metal packaging commonly achieve high recycling rates. A more complex product has significantly lower recycling rates
than metals, glass, and paper (Aparna & Piyali, 2015). Steel, aluminum, copper, and brass scrap metals can be recovered and recycled without losing their
valuable properties (EuRIC, 2021; Aparna & Piyali, 2015). Scrap metals can be obtained from steel, capital goods, and consumer goods such as vehicles, ships,
machinery, electronic equipment, home appliances, etc. (Chandrappa & Das, 2007; Geneva International Centre for Humanitarian Demining (GICHD), 2005).
Metal scrap competes in domestic and global markets (EuRIC, 2021). The circular economy model requires resources that can be used without losing value. It
requires resources so that its value chain does not end but continues even after use by allowing reuse, recycling, and remanufacturing (EUROFER, 2020; EuRIC,
2020), and metals are among them. Because of available financial resources to manage and treat waste, Europe and other developed countries have a high
recovery rate in the solid waste management system. Whereas in developing regions such as sub-Saharan Africa (SSA), where poverty remains a challenge
(Kaza et al., 2018; Zaman, 2016), cities cannot set enough budget for solid waste management, instead prioritizing other areas (African Clean Cities Platform
(ACCP), 2019).

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Scrap metal is one of the fastest growing informal sectors in developing countries. Between 2003 and 2016, bilateral trade between countries increased by
30%. As a result, the solid waste trade generated nearly 94 billion dollars globally. In 2018, approximately 60% of the solid waste trade was on scrap metals,
30% on paper, and 4% on plastic by weight (Aparna & Piyali, 2015; Yamaguchi, 2021). As a result, scrap metals account for a million share of the global waste
trade. Unlike other types of waste, such as plastic, which has a limited recycling cycle, metals have an infinite recycling limit due to their unique properties. As
a result, non-metal materials have a more reliable circular value chain (EuRIC, 2020). In addition, metals derived from secondary metal sources are less
expensive than those derived from virgin materials. As a result, scrap metal waste is one of the most traded solid wastes both within and across national
borders. Emerging markets like China, India, and Turkey are the lead scrap metal importers. With China’s growing circular economy, the scrap metal business
grew internationally compared to other types of scraps (Aparna & Piyali, 2015).

Scrap is a significant source of raw materials in metal manufacturing and manufacturing machinery equipment (Liu & Shao, 2018; OECD, 2018). Therefore,
scrap trade will be more beneficial if traded within the borders (closed loop). However, they are exported to emerging economies because of various limitations
like the capacity to process them, especially in developing countries because of a limited industrial base (Liu & Shao, 2018). Nonetheless, in 2017, China’s
bans on some scrap like plastics will be a window of opportunities for source countries to embark on close loop mode, which will help the export countries to
grow than exporting them. Additionally, even the EU, one of the leading exporters of scrap to China and other developing countries, has reduced the export of
scrap (Preston & Lehne, 2017).

Additionally, exporting them does save the locals from the environmental challenges related to the processing. Nonetheless, it takes away some benefits like
employment from locals. It should be noted that the circular economy needs to be improved and planned (informal), particularly in developing countries. It
involves the private sector and individuals involved in the scrap trade, affecting its effectiveness and effects.

The scrap metals business varies depending on local circumstances and area. The distinction is determined by various groups involved in the business chain,
such as street/village partial collectors, local brokers who provide a market for scraps, and scrap processors who own working facilities and employ wage
laborers in their workshops (OECD, 2021). It should be noted that selling scrap metals generates more revenue than selling plastics, glasses, and papers
(Yamaguchi, 2021). As a result, people from other industries, such as agriculture, get involved in the business, even as part-time collectors, to boost the
household economy. Scrap metals are classified into two categories: ferrous (iron and steel), which includes scraps such as discarded automobiles,
household appliances, farm equipment, steel beams, ships, railroad tracks, food packaging, and other metals). Nonferrous scrap metals include zinc, titanium,
nickel, aluminum, lead, copper, cobalt, chromium, brass, and precious metal. They are less available than ferrous scraps but have a higher value. Secondary
smelters, ingot markets, refiners, fabricators, and other industries use millions of tons of nonferrous scrap in their operations.

Over the last two decades, many studies have focused on the global value chain (GVC) (Lepawsky & Billah, 2011) of industries such as textile, electronics,
agro-food, automobiles, and intra and inter-industry with a continuum from production to consumption. However, there are insufficient studies on post-
consumption and the value of products after use, which are assigned negative values. For example, scraps and metals were not considered valuable resources
in the manufacturing process. This might be due to various factors, including the traditional linear economic model (Lepawsky & Mather, 2011). However, a
growing global environmental issue, such as climate change, caused by increased GHG emissions, has focused on the post-consumption of goods. This is
aided by the emergence of a new economic concept known as circularity. As a result, scrap resources such as metals are becoming valuable, altering the
perception of the resource value chain (OECD, 2018). Recently, used metal recycling has been promoted to address resource scarcity and mitigate
environmental challenges (climate variability) and as a potential pathway to poverty reduction or emancipation of the most vulnerable (Amankwah et al.,
2016).

Solid waste generation in Tanzanian cities is increasing year after year. This is because of rapid urbanization, population growth, and improved socio-
economic development, which pose serious environmental concerns. A large city like Dar es Salaam will produce 4200 tons daily by 2025. Over 85% of
Tanzania’ssolid waste is discarded unsorted (NBS, 2017; Kaza et al., 2018). Poor and unsustainable solid waste management in the country due to limited
financial and human resources, technology, and planning exacerbates the severity of its effects. It has increased health risks, disasters, and environmental
consequences such as climate change due to greenhouse gases (GHG) emitted by dumps or landfills (UN-Habitat, 2012; UNEP & ISWA, 2015). However, in
some cities such as Arusha, Dodoma, Tanga, and Moshi, efforts to increase solid waste collection by contracting the service to private collectors and CBOs
have resulted in a collection rate of up to 81% (NBS, 2017).

Nonetheless, a greater volume of solid waste is still disposed of in landfills/dumps, increasing GHG emissions from the waste sector. This is due to the low
recovery rate caused by the need for source separation and sorting policy throughout solid waste management. This constrains the growth of the city’s
circular economy. In all stages of solid waste management in the city, materials are recovered by waste pickers, which need to be increased. Materials with
commercial value, such as plastics, paper, glass, and metals, are the most commonly recovered.

This paper examines the synergy between sustainable solid waste management practices to increase the circular economy in Tanzanian cities and reduce
waste’s environmental impact while improving people’s wellbeing. It examines the city’s categories, quantity, market, and nature of scrap business. It examines
the environmental benefits and some adverse effects of scrap business in Arusha city; it also proposes a better model for the scrap metal trade in the city and
inclusive of key stakeholders like waste pickers in the city solid waste management and circular economy to make it effective in the circular model. This paper
suggests that discourse on sustainable solid waste management and the circular economy should consider a more holistic approach to recognizing the
multiplicity of this issue and encouraging a mediated path to its realization.

The paper begins with the study background, theoretical pushes, briefing on the study area, methods of data collection, and analysis. It then describes the
study area and the data collection and analysis methods. Then followed the empirical section, which covered the types of scrap metals traded, sources of
scrap metals, the market for scraps metals, scrap metals dealers, the nature of scrap trade in the city, socio-economic importance of scrap trade in the city,
environmental importance of scrap metals trade, adverse effects of scrap metal trade in cities and finally the conclusion.

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Methodology
The study was conducted in Arusha city in northern Tanzania. The city is the tourism hub of Tanzania, the largest city of the Arusha region, and the third large
city in the country. According to the Tanzania National Bureau of Statistics (NBS) (2022), the city population is 519,000. The city covers an area of 272 km2.
This study targeted scrap metal dealers in the city and the city environmental officer (1). These include large (3), medium (3), small dealers (4), and collectors
waste pickers) (2). In qualitative studies, a minimum sample size of 12 is enough to reach data saturation. Hence, a sample of 13 was considered sufficient
for the analysis of this study (Clarke & Braun, 2013; Guest et al., 2016).

Data for this study were collected between September 2021 and January 2022. Data was collected from face to face semi-structured interviews with the city
environmental officer, in-depth interviews with informal interviews with collectors, and field notes from direct observation also. In addition, the study reviewed
official documents and grey literature. Scrap dealers and city environmental officers were purposely selected to obtain reliable data. Convenience sampling
was applied to get scrap collectors since they were mobile and had suspicious attitudes. The interview with dealers and city environmental officers took place
in their offices. At the same time, for collectors, it depended on the location they were met, the convenience of the setting, and their readiness. The interview
duration with collectors was 15–30 minutes, while with dealers and city, the official was 45 to 90 minutes. Data were analyzed using thematic and content
analysis (Fugard & Potts, 2015).

Results And Discussion

Types of scrap metals traded in the city
Both ferrous and nonferrous metals are traded in the Arusha city scrap business, as in other parts of the world. As indicated by the findings in Table 1,
approximately eight types of metals were traded in Arusha. Over 314 tons of scrap metal are traded monthly for recycling in Arusha. However, they vary in
terms of types and quantity due to demand. Iron dominated the trade with about 240 tons per month, followed by cast iron (40) and aluminum (16). One
reason for this disparity could be the high demand for iron in the construction industry and other applications and the low cost of processing scrap iron. This
is consistent with EuRIC (2020), United State Environmental Protection Act (2020), and UNEP (2018), who argue that demand for steel iron will increase in
emerging and developing economies. EuRIC (2020) states that scrap metals accounted for over one-third of global steel-iron production in 2019. This finding
is similar to that of Nkansah et al., (2015) in Ghana, who reported that lead, iron, and copper are the most added scrap metals. The low level of other metals,
especially nonferrous metals like aluminum, brass, cast, stainless steel, and zinc, also indicates a weak industrial base in the region or country, which is why
they cannot be processed (European Commission, 2014; Nkansah et al., 2015). Bawa et al. (2020) reported similar types of scrap metals and resources in
Nigeria. Furthermore, these findings imply that Arusha has a high level of scrap metal recycling compared to other materials, which also implies a high rate of
scrap metal recovery compared to other materials due to market demand and price. There is evidence of a circular economy in the city, which needs to be
strengthened by connecting it to other sectors to promote recovery.

Table 1
Types of scrap metals in the city
Types of metal Quantity in tonnes per month

Copper 5

Aluminum 16

Brass 5

Cast iron 40

Stainless steel 3

Iron 240

Zinc 1

Magnesium

Total 314

Source. Field data, 2021

Sources Of Scrap Metals In The City

The study also wanted to know where scrap metals are obtained. Figure 2, the majority of materials were obtained from households or individuals (33%),
offices or institutions, especially government offices, and private offices. Also, from garages (18%), the vast bulk is scraps of car parts such as rims, chases,
defusers, etc. Scraps from households, such as house appliances, and demolished materials from the house. These findings imply that people understand the
value of these materials, which is why very few are obtained from landfills. These findings are consistent with those of Nkansah et al., (2015) in Ghana, who
found that households (Hhs) are the second most important source of materials.

On the other hand, it contradicts it because Arusha Hhs know the value of the materials; hence they do not dump them. In Ghana, dumpsites are the main
sources of scrap metals, indicating a low level of education on the value of scrap metals. The increased awareness of the value of scrap materials reduces the
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amount of these materials in landfills or dumpsites. This demonstrates the circular economic model link between the scrap trade and the recycling industry.

The Market For Scrap Metals

The study sought to identify the city scrap material buyers. The findings reveal three scrap metal buyers in the city. The first was Lodhia Steel Limited and
BANSAL Steel Limited, which buy and recycle nearly 80 scrap iron. Some dealers also export and sell them at higher prices to Dar es Salaam and countries
such as Kenya and Japan. Because of inadequate recycling technology and low African demand, cast iron and aluminum are mainly exported to Japan. “We
export cast iron and circuit to Japan because there is no technology to recycle them in the country” (Scrap dealer at Esso, 2021). The second type of buyer is
artisans, those who use them to make various objects, such as pushcart makers, charcoal stove makers, welders (use iron), gate decoration artisans
(aluminum), and motor makers (use copper wire). Individuals who buy for various purposes in their homes comprise the last group of buyers. These two
groups consume about 5% of the city’s scrap metal. Steel industries in Arusha are the main market for iron, while other metals are exported to Dar es Salaam
and a few to Nairobi.

Each metal has a different buying and selling price depending on the market. “very material has its price” (Scrap Shop Owner, 2021).“Outside of the country,
such as Kenya (Nairobi), the price is higher than in the country. The prices fluctuate based on demand, the global market, and crises such as Covid-19” (Scrap
dealer at Daraja Moja, 2021). Copper is the most expensive metal, with a buying price of 12,000–13,000 Tanzanian Shillings (TZS) and a selling price of
13,500 − 18,000TZS, followed by brass, which is bought between 2,500-5,000TZS and sold between 7,000–8,000TZS, and pure aluminum, which has a buying
price of 1,500-2,800TZS and a selling price of 2,800-3,600TZS. “In terms of selling per kg, copper is more profitable than per month, but it is scarce” (Scrap
dealer at Unga Limited, 2021). As a result, iron is the most profitable and with a high-income margin in terms of volume and market share; however, its price is
not as high as copper, but it is the most traded material in the city by volume. In the city, the steel industry has a buying price of 300-550TZS and a selling
price of 600-800TZS. This finding is consistent with EuRIC’s (2020) findings that steel iron is the world’s most tradable and recycled scrap metal. It also agrees
with Nkansah et al., (2015) findings in Ghana, where copper, lead, and aluminum are the most expensive.

Furthermore, in terms of volume and profit, iron is the most traded material in Ghana (Nkansah et al., 2015). As in Ghana, scrap metal is exported to industrial
cities such as Accra. It is also similar to Arusha in that metals are exported to Dar es Salaam, the country’s commercial capital.

Table 2
Types of metals, their selling and buying price, and market/buyers
Types of metal Buying price Selling price per kg in Market/Buyers
TZS
per kg in TZS

Copper 12,000–13,000 13,500 − 18,000 Dar es Salaam

Brass 2500–5000 7000–8000 Dar es Salaam, Nairobi

Aluminum 1500–2800 2800–3600 Dar es Salaam, Arusha

Cast aluminum, e.g. Motorcycle 2200–2600 2800–3000 Dar es Salaam

rings

Stainless steel 200- 250–300 Dar es Salaam

Cast iron 100–200 250–300 Dar es Salaam

Iron 300–550 600–800 Steel Industries in Arusha, Dar es Salaam,

Nairobi

Zinc Not in demand hence couldn’t get the

price
Magnesium

Source: Field data, 2022

Scrap Metals Dealers In The City

Based on the study findings, Table 2 shows the main scrap metal dealers in Arusha city. Many people in the city deal with scrap metals, but these are the most
well-known dealers. The dealers were divided into three groups based on the amount of materials they could buy and sell per month. The first category
consisted of large dealers who could supply 25 tons or more. The second category included medium dealers who could supply between 7 and 24 tons per
month. The third and final categories were small dealers with a monthly capacity of 0.5 to 6 tons of materials.

It should be noted that several factors, including capital and availability, influence their capacity. However, capital is the primary determinant of material
handling capacity. The large dealers have a large capital, and some, like Yu-Hardware, have contracts with steel industries like Lodhia to supply them with
materials. As a result, once the capacity is met, Lodhia will dispatch a truck to collect the materials.

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 Table 2
Dealers of scrap metals in the city
Types of metal Quantity in tones per month Level

Yu-Hardware 60–90 Big dealer

King Colla Co. Ltd 50–70 Big dealer

Kaburu Scraps 25–40 Big dealer

TRANSCRAP 25–30 Big dealer

Pamoja Nguvu Group 15–25 Medium dealer

Mama Bon 10–15 Medium dealer

Maendeleo 3–5 Small dealer

Scrap Collectors 1–5 Small dealer

Source: Field data, 2022

The Nature/chain Of Scrap Trade In Arusha City

The scrap metal trade in Arusha is organized as a chain. There were various people or participants in this chain. This study identified four important trade
participants or dealers (Fig. 2). These wholesale dealers purchased from various groups such as offices, institutions, middlemen, small dealers, facilitated
collectors, individual collectors, and collectors (pickers). The second category included middlemen who bought from individuals and sold to large dealers
wholesale dealers. Individuals or waste pickers are collected from various sources, including landfills and households, and sold to middlemen or wholesalers.
“Big dealers provide us with capital to purchase materials, which we then sell to them, but they return their capital and give us the difference” (Middlemen at
Sokoni One, 2021). Big dealers provided some collectors with capital to collect materials and sell to them. “We give small collectors capital of 40,000-
100,00TZ or more depending on their ability to collect materials and sell to us” (Scrap dealer at Unga Limited, 2021). The scrap shops and steel industries,
such as Lodhia Steel Limited and BANSAL Steel Limited, are the main buyers of scrap iron and small aluminum smelters and make gate decorations. These
buyers also enter into sales agreements with dealers. When enough materials have been collected, buyers will send the truck to the dealer’s warehouse to pick
them up. The study also divided the dealers into three categories: large dealers with more than 15 tons per month, medium dealers with a capacity of 5–10
tons per month, and small dealers with a capacity of 0.5-4 tons per month. “We are small dealers, selling between 2 and 3 tons per month” (Scrap dealers at
Olasit, 2021).

Socio-economic Importance Of Scrap Trade In Arusha City

The scrap metal trade has nearly quadrupled in the last two decades due to metal demand. Emerging economies and developing countries are key players in
this trade. This has also coincided with their recycling. As a result, it has grown into a multibillion-dollar industry. It is now a source of income for millions of
people and generates revenue and jobs for city dwellers worldwide, including Arusha. In Arusha, approximately 200 people work in the scrap metals trade, both
full-time and on a temporary basis. Based on the price of the materials and overall observation, the market value for the scrap metal business in Arusha is
approximately 200,000 USD. Permits generate more than 40 million TZS in revenue for the government. This is in addition to the VAT collected by TRA on each
trader trip.

According to Tanzania’s National Environmental Council (NEMC), an authority responsible for environmental protection, you must have a permit to collect and
transport scrap metals. This license expires in three years and costs 5 million TZS. Scrap dealers must not only obtain a permit from NEMC, but they must
also pay value-added tax to the city authority. This license is for dealers and not collectors (pickers). This finding is consistent with the European Union and
the United Kingdom, where scrap dealers must be licensed to trade scrap metals. As a result, they contribute to the government’s income. Scrap trade also
provides employment and income to individuals throughout the trade chain.

Waste pickers play a vital role in the informal economy and solid waste management in developing countries, yet are usually ignored by cities. They serve as
recovery and recycling hubs and advocates for circular economies and climate mitigation, particularly in developing countries (Annep, 2012; Liu & Shao,
2018). For example, waste pickers in Arusha city recovered three-thirds of all recovered material, including metals. Unfortunately, many cities neglect to
recognize and honor these environmental entrepreneurs and vital stakeholders of the circular economy and climate change mitigation. “With this job, we
survive and send our children to school. City and society do not appreciate us” ‘One day, I will want to be a big dealer” (Waste pickers at Unga Limited, 2021).
Discrimination, a lack of recognition, and limited access to resources and support are all major impediments to involvement for waste pickers (Wilson et al.,
2012). Arusha city officials need formally identify rubbish pickers and provide a crap trade permit. Waste pickers also expressed dissatisfaction with the cheap
cost of materials. Large dealers take advantage of us; the price is low compared to what they get in return. “All you get is just a slice of bread to survive”
(Waste Pickers at Sokoni One, 2021). Cities should consider schemes involving waste pickers’ views and knowledge to establish more inclusive and effective
circular economic models and synergistic relationships with the waste sector (ILO, 2018; Wee et al., 2019). Waste pickers are incorporated into formal recycling
programs in several countries, such as Fiji and Brazil (da Silva et al., 2021). It would be essential for policymakers and decision-makers to evaluate the effects
of such policies on waste pickers and seek to develop more inclusive policies that encourage their participation in the circular economy (Stahel et al., 2018).

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The environmental importance of scrap metals trade
Scrap metal trade environmental significance
Scrap metals have an environmental benefit in addition to being socioeconomically important by providing income, employment, and materials for
manufacturing in the manufacturing sectors. The waste sector has a significant potential to reduce GHG emissions, such as CO2, by 58% (OEC 2018; Reh,
2013). This is equivalent to all cars driving in the United Kingdom, ance, and Belgium. This will also low production costs. In the EU, for example, scrap metal
saved the region approximately €20 billion in environmental costs in 2018 (Bawa et al., 2020; EuRIC, 2021; OECD, 2018). One metric tonne of steel recovered
from scrap metal can save nearly 1,115 kilograms of iron ore, 625 kilograms of coal, and 53 kilograms of limestone, according to the USEPA. Metal recycling
saves 75% of energy and 90% of raw materials, reduces air pollution by 86%, water use by 40%, water pollution by 76%, and mining waste by 97% (EUROFER
2020; OECD, 2021).

Furthermore, recycling aluminum in the United States saved 17 million barrels of petroleum, enough to power one million cars yearly. Figure 3 depicts recycling
scrap metals’ economic and environmental benefits and how they improve the circular economy, climate-smart city, and scrap metal trade. According to Fig. 4,
iron steel industries in Arusha, such as Lodhia Steel Limited and BANSAL Steel Limited, are saving 300 tons of iron ore, 164 tons of coal, and 56% of their
monthly energy consumption by recycling scrap iron steel. In addition, the 16 tons of aluminum scrap trade saves 64 tons of bauxite ore. These will improve
the economy and quality of life while preserving the environment and natural resources. Millions worldwide make a living selling scrap materials (Kumar et al.,
2017; Morais et al., 2022).

Negative effects of scrap metal trade in cities

While recycling scrap metal provides considerable environmental benefits, these materials also have negative environmental implications, including increased
CO2 emissions from transporting and potential environmental concerns from handling and processing (Liu et al., 2018; Lundberg et al., 2016; UNEP, 2010).
Closed loops are seen to be more effective in circular economic models. Nevertheless, market limits and other factors make maintaining a closed loop of
materials challenging (Wee et al., 2019). Exporting scrap metal to other countries for processing can also be economically and environmentally viable for
locals. As a result, when designing long-term solutions, policymakers, decision-makers, and industry leaders should consider the economic and environmental
implications of recycling and exporting scrap metal (Lindhqvist, 2018; Wee et al., 2019). Scrap trade has also led to challenges like metal theft and
infrastructure damage, especially electricity, roads, and railways. Anyone caught buying such metals will be highly fined, sued, and have his license ceased.
“We do not buy scrap related to electricity, road, and railway infrastructures like wire road light poles. The punishment is severe if you are caught with them.
Even if small dealers (waste pickers) bring them, we do not buy them. Public infrastructures, especially road lights poles, bridges, and electric wires, were
stolen in the past by scrap dealers. However, nowadays, the cases are rare” (Scrap dealer at Esso, 2021). To address the challenge, the government has
restricted scrap dealers from buying any scraps related to public infrastructures. “We have agreed with dealers that if anyone is found with scrap related to
public infrastructures, his/her license will be invalidated. Severe fines will be involved” (City Environmental Officer, 2021). Tanzanias, Minister for Industries,
Trade, and Investment, 2022, also announced that the government has decided to enact a law to monitor the theft of key infrastructure instruments sold as
scrap metals. He said the most affected infrastructures were Tanzania Electric Supply Company Limited (TANESCO), Tanzania National Roads Agency
(TANROADS), and Reli-Assets-Holding-Company (RAHCO). “This business is fuelling the looting of crucial infrastructure, leading to the need to enact a law. In
some countries, city authorities have restricted trade because of damage to public infrastructures caused by scrap trade”. South Africa has also prevented
them through regulations and permit procedures called; “Measures to restrict and regulate trade in ferrous and nonferrous metals waste, scrap and semi-
finished ferrous and nonferrous metal products to limit damage to infrastructure and the economy” (South Africa Department of Trade, Industry &
Competition, 2022).

Conclusion
In general, the scrap materials market and businesses are strengthened by increasing demands, internal and external needs, the high price of virgin materials,
and fewer fluctuations in the market price of recyclables. This is reinforced when specialization in certain materials, such as metals or plastics, creates a
niche. Cities can be critical in transitioning from linear to circular development models through sustainable solid waste management practices such as scrap
metal recovery and trade. It will also enhance the concept of climate-smart cities and sustainable solid waste management in developing-country cities, which
lag in circular economy and climate-smart cities. It contributes to the conservation of natural resources by providing secondary materials. It reduces the
volume of discarded materials, thus extending the life of landfills and raising the aesthetic level of the city. Scrap metals trade encourages the recycling of
solid waste and opens the value chain of resources after their life cycle, which aids in achieving sustainable development goals. Because materials
management is responsible for more than two-thirds of emissions, cities transition to a more circular economy, and climate-smart cities can help them meet
the Paris Agreement targets. Thus, developing an efficient national solid waste management scheme that connects product design, development, and
manufacturing is critical for the circular economy to function correctly. In this fourth industrial revolution, cities’ long-term development plans must be well-
adjusted and synchronized with the economy, environment, politics, technology, social aspects, and manufacturing process. A circular economy can reconcile
all of these aspects.

Declarations
Conflict of Interest: The authors declare no competing interests. Ethics Approval and Consent to Participate: All procedures concerning human participants in
this research were carried out per the country’s ethical standards and approved by the University of Dar es Salaam. All individual participants in the study
offered their informed consent.

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Figures

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Figure 1

Loading of scrap metals for transportation

Source: Field data, 2021

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Figure 2

Operation chain/nature of scrap metals trade in Arusha city Source. Field data, 2022

Figure 3

Proposed model of scrap trade in the city MSW-Municipal solid waste

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Figure 4

The advantage of recycling scrap metals

Source. USEPA, 2019

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