Meet Big Scrappers, the tech-driven solution revolutionizing Egypt’s recycling industry: App-based recycling delivery service Big Scrappers is the recycling industry’s answer to Talabat, with the company combining digital convenience and reliable recycling services in a bid to transform Egypt’s circular economy. EnterpriseAM sat down with Big Scrappers founder Moustafa El Kabbany to learn more about the company and its plans for the sector.

It's a simple concept: All users need to do is download the app, snap a photo of their recyclables, and Big Scrappers will handle the rest. The app matches users with nearby pickup routes, sends a truck to weigh and pick up the items, and rewards customers with cash or redeemable points — the latter of which can be used on Big Scrappers' e-commerce platform to buy items ranging from electronics to beauty products and even gold. Customers can also drop off recyclables at any of Big Scrappers’ five local stores.

Remember: The government has been doubling down on waste management of late, with several recent offerings announced for private sector investment in wastewater treatment and recycling facilities and an ambitious plan to set up USD 1.2 bn worth of waste-to-energy projects in the coming period.

Big Scrappers runs on a B2B and B2C business model, with the company collecting a minimum of 2 kg of sorted plastics, glass, cans, and paper from households, restaurants, cafes and factories and delivering them to recycling centers.

This marks a departure from your bread-and-butter recycling practices: Egypt last year ranked first regionally and fourteenth globally with regard to recycling rates, with Cairo’s Zabaleen (informal waste recyclers) standing to take much of the credit. Despite this, the recycling process itself remains fragmented and generally doesn’t include the immediate consumer. With solid waste production set to double in the MENA region by 2050, a more comprehensive solution is needed.

Big Scrappers is giving people a reason to recycle: With the company’s cash-and-points incentive system and competitive pricing of EGP 90 per kg, Big Scrappers is now prompting people who are not necessarily environmentally conscious to recycle. “Not only are people throwing away money, but not sorting and recycling garbage then becomes an expensive problem for the government,” El Kabbany explained.

Few competitors, widespread digital savviness, and minimal barriers to entry have enabled Big Scrappers to grow into Egypt’s largest recycling service, currently operating in Cairo, Giza, Alexandria, and Mansoura governorates. With a targeted expansion rate of two governorates a month, the company expects to cover the entirety of Egypt within a year. Big Scrappers has also struck out internationally, with recycling operations in Bosnia and plans to enter the UAE this year.

The industry is a lucrative one: Globally, the recycling industry is worth some USD 62 bn, with profit margins reaching up to 30%, depending on the material. Egypt is no different, with the existence of standalone recycling facilities enabling companies like Big Scrappers to scale up and make sustainable profits with minimal overhead.

The key is keeping things simple: While some recycling companies eventually turn toward manufacturing with recycled products, Big Scrappers is keeping its focus on transportation, sorting, and streamlined logistics. “Our business doesn’t get bogged down by manufacturing, instead, we add value through fast, organized collection,” El Kabbany said.

Egypt’s solid digital infrastructure also helps: While Egyptians may not have an existing recycling culture, they do respond well to cash incentives and have sufficient digital literacy to use the app, which has enabled the company to easily grow in the market, El Kabbany explained. High mobile penetration in the country also supports growth in the digital recycling sector, which is now accessible to Egyptians from many walks of life.

It’s not just about business, though: As part of the company’s mission to effect a shift in cultural norms around recycling, Big Scrappers has launched what it calls the Green Scouts initiative, which teaches waste sorting and storage in an effort to spread greater environmental consciousness. The outreach program — currently operating in twelve schools and four universities — emphasizes practical education, teaching students how to manage different materials like aluminum and glass.

Looking forward, Big Scrappers aims to add some 30 stores across Egypt in the coming period, with long-term plans of expanding operations to 30 countries over the next five years. In the meantime, the company is focused on maintaining a simple business model and scaling its operations as it seeks to improve waste management and introduce the circular economy to homes and businesses across the world.

Your top green economy stories for the week:

  • The Ins. Federation of Egypt has purchased 350 carbon certificates in the Egyptian Biodynamic Association’s Minya Complex. The certificates will offset emissions from flights transporting guests to the ins. conference in Sharm El Sheikh. (Statement)
  • Egypt will purchase 180 electric public buses funded by a World Bank-funded project to improve air quality and noise protection.
  • Agribusiness firm Orange Be Global plans to set up an agricultural, industrial, and educational complex in Egypt, which is currently in the land allocation phase. (Statement)
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