Structuring the supply chain
of recycled metals

Morocco’s scrap metal recovery industry faces supply challenges

The metal recycling industry in Morocco is an important puzzle piece in managing resources sustainably and in reducing the country’s environmental footprint. However, businesses operating in this sector face a major constraint: a fragile supply chain. The instability of the supply of recyclable raw materials limits their production capacity. Additionally, the lack of effective scrap sorting limits their ability to meet national and international quality standards. This undermines their export capacity and therefore curtails their growth prospects.

One factor responsible for this situation is the limited capacities of scrap metal collectors. They lack the expertise and equipment needed to operate effectively and ensure the continuity of their operations. Most collectors do not have the means to sort scrap properly or transport it and are therefore unable to meet recyclers’ supply requirements in terms of quantity and quality. As a result, their income is low and irregular, putting them in a precarious financial and social situation. As they are operating in the informal sector, they have no health care coverage, which is particularly serious given the health risks they are exposed to in the course of their work.

To improve the working conditions of scrap metal collectors and support the growth of and job creation in recycling businesses in Morocco, Invest for Jobs supports Benomar Metal Company (BMC) and ENSAM, Meknès engineering school. BMC is a Moroccan enterprise specialising in the manufacture of engineering products using ferrous and non-ferrous metals. Together with ENSAM, they aim to restructure the supply chain of recycled metals for the better.

Improving scrap collectors’ effectiveness and structuring their operations

To address the challenges of Morocco’s scrap metal recycling industry, BMC and ENSAM implemented a joint initiative in July 2022. Two cooperatives were established to improve scrap collectors’ effectiveness and better structure their operations. To facilitate waste collection, sorting and distribution collectors of the cooperatives were equipped with shared resources like metal cutting tools. The aim was to guarantee the supply of raw materials to recycling businesses, while at the same time ensuring protection for scrap collectors.

The cooperatives – Maadin Meknès and Maadin Youssoufia – are named after the Moroccan cities where they are based, known for their booming mining industries.

With support of Invest for Jobs, both have been equipped with state-of-the-art equipment, including a metal baler to reduce the amount of storage space needed and specialised magnets to facilitate sorting. Radiation detectors help identify waste that contains radioactive material so that it can be removed in compliance with domestic and international regulations. The equipment makes it possible to treat scrap waste more efficiently and replace dangerous waste-handling operations carried out by collectors with semi-automated processes. In terms of logistics support, the cooperatives have vans to facilitate the recovery of scrap metal and the distribution of treated waste to customers.

With a view to strengthening the capacities of scrap collectors, the cooperatives provide training on health, safety and hygiene, with the help of ENSAM lecturers. Additionally, teams from the cooperatives help collectors with administrative procedures to legally register their business as sole proprietorship. This legal form enables them to operate formally, but with simplified accounting and tax filing procedures which entitles them to social protection. Registering their business therefore makes them more resilient to shocks such as occupational accidents.

Impact on employment and environmental sustainability

As of February 2024, the establishment of the two cooperatives generated 12 new good jobs, which were positions created to form their technical and administrative teams. Since their foundation in July 2022, the two cooperatives have offered five weeks trainings in health, safety, and hygiene to all 72 scrap metal collectors who have joined Maadin Meknès and Maadin Youssoufia.

The cooperatives have also provided essential support in helping these collectors register their businesses as sole proprietorships, ensuring formal operations and access to healthcare coverage. The initiative has had a considerable impact in terms of improving environmental sustainability in the cities of Youssoufia and Meknès, as a result of the significant increase in the amount of scrap metal recovered and recycled.

This project was supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in the context of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ).