Added: Mar 09, 2022
Last edited: Sep 27, 2022
This case study, which focusses on textiles, is written to demonstrate how organisations that act as intermediaries can create economic opportunities that contribute to a circular economy in a developing country, such as South Africa.
The case study discusses:
- How waste can be used as a resource to drive economic growth and social upliftment,
- How intermediaries can unlock circular economy opportunities,
- How a circular economy can be emergent from addressing economic and social imperatives in a developing country context, and
- How collaboration enables the organisation and partnering individuals to each have a sustainable business model.
Retailers that sell clothing are generally large corporate companies. Due to several factors, such as mass production, inaccurate forecasting and economic trends, retailers have excess merchandise that is either unsold, returned by customers or items slightly damaged during trade that are not fit for sale.
South Africa’s unemployment rate stands at over 30% (reported as 32.6% in the first quarter of 2021 by Statistics SA), with a lack of education and training pinned as the root cause of unemployment. This results in many families living below the poverty line (and specifically women-led households with 49% of black women living below the poverty line) and a heavy reliance on government grants.
A non-profit organisation, The Clothing Bank, identified a gap in the market, and a need for an intermediary to link the end of the retail supply chain with unemployed, single mothers.
