Two men sit in a van transporting waste paper in front of the Yaguarete building (Paraguay)

Paraguay Paraguay: waste company cuts costs by improving paper recycling infrastructure

Latin America
DEG
Classic
Circular economy

In Paraguay, waste volumes are escalating due to economic growth, rising urbanisation and increasing consumption. While waste collection is run well for the most part, up to now little effort has been made to sort and recycle waste. As part of the develoPPP programme of the German Federal Ministry for Economic Cooperation and Development, the recycling company Recicladora del Este S.A. (REDESA) and Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) have developed an effective system for collecting paper and raising awareness about waste sorting and recycling. The improved recycling infrastructure has helped REDESA to increase production volumes and the supply of recyclables, cut costs and conserve natural resources. 

In Europe, around 70 per cent of waste is recycled on average, while in Paraguay the figure is just 25 per cent. The majority of waste ends up on dumps, polluting groundwater and emitting methane. As a result, recycling companies lose out on valuable raw materials, and the economy misses out on important recyclables. The country lacks awareness about how to separate waste and does not have an efficient network of collection points and suppliers, which are both key elements of an effective waste management system. Recycling, in general, and paper recycling, in particular, are currently handled largely by local waste pickers, who often have to separate paper from other waste first before they can sell it. Conversely, companies like REDESA that use waste paper often have to import their raw materials from other countries due to insufficient availability and quality. An improved recycling infrastructure and higher local waste paper volumes would mean significant savings for transportation and logistics. 

 The objective of the project was to set up an effective recycling infrastructure accompanied by communication measures to raise awareness of the economic and environmental benefits of paper recycling. Between 2017 and 2021, the project partners carried out the following measures in the cities of Asunción and Ciudad del Este to increase paper recycling rates. The total budget was approximately EUR 400,000. 

  • Installing additional purchasing centres and collection containers at strategic locations 
  • Conducting targeted campaigns to raise awareness among businesses, waste paper collectors and households. 
  • Equipping waste paper collectors with work clothes and tools 
  • Providing training in occupational safety, business and household budget management 
  • Developing a smartphone app to better organise the recycling chain 

REDESA set up the collection network and developed communication measures, training sessions and the app.  

Thanks to the project, we have significantly increased the amount of waste paper that can be recycled. Waste companies, waste collectors, the general public and the environment all benefit from this effective recycling system.
Andreas Neufeld, Director General at REDESA
Waste paper container stands in a park (Paraguay)
Strategically placed containers significantly increase the amount of collected waste paper. Photo: REDESA
Man kneels in front of a bale of waste paper and measures the quality with a device (Paraguay)
The quality of the collected waste paper is checked using a humidity measure instrument. Photo: REDESA

The improved collection infrastructure and awareness-raising measures in the media allowed REDESA to increase paper recycling rates significantly. Local waste sorting and collection increased the amount of recyclable waste paper and improved the incomes of waste pickers significantly. The smartphone app was able to draw attention to current locations and attract new suppliers. 

  • 54 additional collection containers 
  • Six purchasing centres for waste paper in different areas 
  • More than 3,900 tonnes of extra waste paper collected 
  • 300 to 500 new waste paper collectors 
  • Carbon dioxide emissions reduced by 410 tonnes 
  • Incomes of waste paper collectors increased by 50 per cent 

DEVELOPMENT SUCCESSES

Recycling Logo

Waste volumes decreased through sorting and recycling

Stacked coins

Increased revenues for local waste collectors

Arrow pointing down

Reductions in water consumption, greenhouse gas emissions and rainforest destruction 

BUSINESS SUCCESSES

Factory, people and truck in a circle

Reduced expenditure on imports and transportation

Arrow pointing up

Higher volumes of recyclable waste paper

Person and three stars

Better-quality raw materials for waste paper recycling

Woman working at a loom

develoPPP Classic

develoPPP Classic is aimed at medium-sized and large companies that want to invest sustainably in a developing or emerging country and expand their operational activities locally. Suitable projects receive technical and financial support of up to two million euros in public funding.

Yaguarete Reciclaje logo

Recicladora del Este S.A. (REDESA)

Recicladora del Este S.A. (REDESA) has been recycling waste paper for more than 44 years. Together with its affiliates Karton Técnico (KARTOTEC) and Cartones Yaguarete (CYSA), REDESA collects and recycles waste paper and cardboard and is committed to implementing recycling in urban areas of Paraguay. The three companies are thus creating jobs for around 620 people. 

KfW DEG Logo

DEG – Deutsche Investitions- und Entwicklungsgesellschaft GmbH

As subsidiary of KfW, DEG promotes the social and ecological transition of the private sector in developing and emerging-market countries. It supports partner companies with financing expertise and entrepreneurial know-how to implement impactful develoPPP projects under their own management.

Gladys Talavera Bareiro
Gladys Talavera Bareiro CEO REDESA
KfW DEG Impulse Logo
Carla Beckmöller Projekt Manager develoPPP DEG Impulse gGmbH