Subsidies and incentives

Subsidies and incentives
for qualifying recyclers

To drive growth in glass recycling in South Africa, there are several incentives and subsidies, funded by Ardagh Glass Packaging and The Glass Recycling Company, that can be paid to certain qualifying recyclers who are registered and transact on BanQu.

BanQu makes these payments quick, easy and safe.

Transport Subsidy

  • Only applies to Level 1 recyclers.
  • The subsidy is applicable to all recycled glass supplied by Level 1 recyclers registered on BanQu and will be paid along with the standard weekly payment.
  • GPS data is recorded on BanQu for transactions between buyer and seller.
  • In calculating the distance, BanQu will review the GPS coordinates of the transaction as well as the registered business address of the buyer. Whichever has the shortest distance to the Ardagh Cullet Plant (either Clayville in Gauteng or Bellville in the Western Cape) is the distance that will be used for the calculation.
  • The subsidy is calculated as follows:
    Distance factor x Rate x Weight
    Distance factor is distance divided by 50
    Rate is R40 per 50km per ton
    Weight is qualifying BanQu tons
  • The first 50kms will be paid at the full rate, even if less than 50km. Thereafter, the distance will be calculated to two decimal points.
  • Suppliers from whom AGP normally collects recycled glass, and who comply with the qualifying criteria, will be paid the first 50km subsidy only.

Example

Distance: 348km
(Straight line or Crow fly distance)

Rate: R40

Weight: 27 tons

Volume incentive

  • Only applies to existing Level 1 recyclers whose base tons will be communicated directly with them.
  • New Level 1 recyclers must supply a minimum of 30 tons per month for 6 months before qualifying for volume incentive.
  • Base tons for 2023 have been set by AGP based on monthly average supply of existing Level 1 recyclers for past 12 months = R100 per ton on all tons that exceed the base rate.
  • Calculated as follows:
    (BanQu qualified tons – base tons) = incentive tons x rate (R100 per ton).

Waster picker incentive

  • Applies to Level 3 (waste pickers) and Level 2 recyclers.
  • Waste pickers typically supply not more than 5 tons per day and not more than 30 tons per month.
  • As an incentive, waste pickers will be paid an additional R150 per ton for new glass they bring into the supply chain.
  • In addition, the buyer (Level 2 recycler) of the additional tons will be paid an extra R100 per ton.
  • The total R250 waste picker incentive is covered by TGRC.
  • Once the transaction between the waste picker and the buyer has been completed on BanQu, two things will happen in real time:
    1. The buyer will make a cashless payment for the glass via BanQu to the waste picker’s kasiCASH account.
    2. Once the transaction is processed on BanQu, the buyer will pay the waste picker service fee of R150 per qualifying ton to the seller. This R150 is in addition to the payment for the cullet bought. Once this is verified, BanQu will immediately release a R250 payment on behalf of The Glass Recycling Company to the buyer, which reimburses the buyer for the waste picker service fee paid and includes an additional incentive amount of R100 per ton for the buyer.
  • The additional R250 per ton incentive only applies to transactions done on BanQu and recyclers must have a BanQu profile and a kasiCASH account.

Disclaimer: Refer to “Defining Glass Recyclers” infographic to understand what documentation is required for eligibility for subsidies and incentives.

For more information refer to:

How do cashless payments work?
BanQu – a trusted platform for glass recyclers
money4glass – how does it work?
Recycling Guide
How do I register on BanQu?
Defining glass recyclers
Subsidies and incentives