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From The Customer-Focused Entrepreneur Project

Ghana’s rPET recycling movement can’t rely only on enthusiasm. Although the Mohinani rPET initiative introduces private funding and advanced processing technology, turning Ghana’s plastic waste problem into a thriving circular economy depends on having a favorable legal structure.

In the absence of well-defined policy guidance and motivating strategies, even advanced recycling systems may face challenges in obtaining sufficient raw materials and maintaining economic viability.

Global experience is clear: recycling programs succeed when policies generate market demand for recycled materials and provide financial motivation for collection. Germany’s 98% bottle return rate, India’s threefold increase in rPET production within two years, and France’s 68% packaging recycling rate all depend on particular legal frameworks.

Ghana requires five essential policy changes—not within five years, but during the upcoming legislative session.

Mandatory Minimum Levels of Recycled Materials: Establishing a Secure Market Demand

Virgin PET resin typically is more affordable than recycled PET because of larger production scales and the absence of pollution-related costs. Without action, drink manufacturers will keep importing new material even if local alternatives are available.

The Solution:Implement laws that set minimum recycled content standards, with incremental goals: 5% rPET by 2026, rising to 10% (2027), 15% (2028), 20% (2029), 25% (2030), and 30% (2032).

With 25% recycled content, Ghana’s drink sector would need 4,500 tons of rPET each year—equivalent to a quarter of the Mohinani project’s intended output. This shifts recycled PET from being a “desirable addition” to an essential business requirement, generating reliable demand that allows recycling plants to obtain funding and provide consistent job opportunities.

India’s 2022 regulations stipulate that 30% of materials must be recycled by 2025, rising to 60% by 2029. The EU sets a target of 25% by 2025 and 30% by 2030. Such policies have driven significant private sector investment in recycling facilities.

Producer Responsibility Extension: Holding Polluters Accountable

At present, Ghanaian municipalities and taxpayers cover the entire expense of handling the 900 million PET bottles that enter Ghana’s economy each year, with producers not being held accountable for their disposal.

The Solution:Introduce thorough EPR laws that mandate all manufacturers, importers, and trademark holders to provide financial and operational assistance for gathering, recycling, and appropriate disposal via Producer Responsibility Organisations (PROs).

Producers would fund PROs according to the weight of their packaging, meet minimum collection goals (beginning at 30%, rising to 70% by 2035), and cover eco-adjusted charges depending on how recyclable the packaging is. Packaging that is hard to recycle leads to higher charges; packaging made for simple recycling results in lower costs.

PRO revenues would finance the collection infrastructure, payments to waste collectors, public awareness campaigns, and support for municipal waste management. EPR is expected to generate approximately GHS¢15-25 million per year at the start, increasing to GHS 50-75 million as coverage grows.

France’s Extended Producer Responsibility (EPR) system attains a 68% recycling rate for household packaging. The Philippines’ EPR law from 2022 mandates that producers manage 20% of their plastic waste in the first year, with this target rising to 80% by 2028—showcasing that developing nations can adopt robust EPR frameworks swiftly.

Tax and Duty Benefits: Making Recycling Too Attractive to Resist

Ghana’s present tax system applies the same rules to recycled and new materials—or in some cases, it imposes penalties on recycling, resulting in an unfair competitive environment.

The Solution:Revamp Ghana’s tax system to promote recycling and reduce the use of new materials:

• Raise the import tariffs on virgin PET resin to 20% and implement a GHS 500 per tonne charge on virgin plastics
• Eliminate import tariffs on recycling machinery completely
• Offer 5-year tax exemptions to recycling businesses
• Enable faster depreciation for investments in recycling machinery
• Offer 150% corporate tax reductions for investments in recycling facilities
• VAT exemption for rPET sales over a five-year period

These benefits would lower rPET’s cost advantage from 15-20% to 5-10% or reach price equivalence, boost returns on recycling investments by 4-7 percentage points, and create GHS 50-80 million in private sector funding within five years.

Standardised Collection Infrastructure Requirements

Ghana’s system for collecting waste is scattered and unreliable, making it difficult to ensure a steady flow of clean, properly sorted PET bottles that recyclers require.

The Solution:Set up national guidelines for PET collection systems and promote the formalization of waste collectors:

• Aggregation Hub Standards:Establish baseline criteria for physical facilities, material durability, safety protocols, and environmental regulations. MESTI and EPA would approve centers that meet these guidelines.
• Collector Registration Program:Create a national registry that offers registered collectors with identification, tools, instruction, and assured minimum buying rates. This officializes Ghana’s approximately 16,000 unregistered waste collectors without removing them from their roles.
• Municipal Integration:Mandate the creation of specific PET collection sites or the engagement of accredited aggregation centers.
• Transparent Pricing:The EPA releases monthly benchmark prices to minimize information imbalance and stop the exploitation of collectors.

Uniform infrastructure lowers transaction expenses, enhances the quality of materials, and offers waste collectors financial security and societal acknowledgment.

Export Restrictions and Local Content Requirements

If there were no export restrictions, Ghana could gather plastic waste effectively but would gain little economic advantage if the material is sent abroad in bales for processing—reaping very little value while others benefit from the processing.

The Solution:Apply targeted export controls while promoting domestic economic enhancement:

• Phase 1 (2026): Prohibit the export of sorted, compressed PET bottles and PET granules
• Phase 2 (2027): Prohibit the export of all raw plastic waste
• Exporters need to show 80% local processing prior to receiving permits for the remaining 20%
• Increased tax incentives for businesses converting waste into final products

Converting PET bottles into rPET pellets in Ghana, rather than exporting bales, generates 3-5 times more value per tonne, creates 5-10 times more employment opportunities, produces tax income, cuts down on foreign currency spending, and fosters industrial knowledge.

Indonesia and the Philippines have introduced comparable limitations to encourage data processing within their borders. For the Mohinani initiative, export controls help maintain a sufficient local supply of raw materials.

A Cohesive Policy Framework

These five approaches complement each other:minimum recycled content creates demand → EPR financing funds collection → tax incentives make recycling profitable → standardised collection ensures material quality → export bansretain the material in Ghana for domestic processing.

By working together, they convert Ghana’s plastic waste from an environmental problem into a financial opportunity, placing Ghana in a better position to access climate funding and green investments from organizations that focus on circular economy initiatives.

Legislative Pathway

Immediate Actions (Q1-Q2 2026):Approval of the Cabinet, draft EPR Act, tax changes for the 2027 Budget

Parliamentary Actions (Q3-Q4 2026):EPR Act filing, tax changes approved

Regulatory Development (2026-2027):The EPA establishes infrastructure standards, while the GSA creates certification procedures.

Operational Launch (2027):PRO licensing, producer registration, certified aggregation centers, and a 5% recycled content requirement come into effect

Final Thoughts: Policy as a Driver of Change

The Mohinani rPET initiative introduces capital and technology, yet it cannot achieve success in the absence of supportive policies. Germany’s recycling sector flourishes due to policies that established favorable conditions. India’s rPET industry experienced rapid growth as regulations required the use of recycled materials. France leads Europe in packaging recycling rates because Extended Producer Responsibility (EPR) has been in place for many years.

Ghana is facing a crucial moment in its policy decisions. We can stick with voluntary methods that have not worked for over two decades, during which our plastic waste problem has grown worse. Alternatively, we can adopt effective policy models that are suitable for Ghana’s specific circumstances.

The legislative plan is in place. International data supports it. The economic argument demands it. Ghana’s 900 million PET bottles used each year—equivalent to GH¢27 million in possible savings and 3,000 employment opportunities—are waiting for it.

Parliament has the chance to turn Ghana’s plastic waste issue into a success story for the circular economy in West Africa. The question is no longer about which policies are effective—we already know that. The question now is whether Ghana will put them into action.

• This piece is the first in a series examining Ghana’s rPET recycling program. Next Monday: “Public-Private Partnerships: A New Approach for Ghana’s Industrial Development.”

Provided by SyndiGate Media Inc. (Syndigate.info).