Small firms outpace multinationals in Africa’s waste sector

From the newsletter

Africa’s waste management sector recorded split growth over the past year, marked by extremes of rapid expansion and slower performance. LinkedIn data analysed by Circular Rising shows that smaller players expanded quickly, posting some of the highest growth rates in the industry, while established multinationals slowed.

• South Africa-based Enviroserv and North American company Waste Management Inc. were the fastest-growing firms, recording 136% and 68% growth respectively in senior staff numbers.

• By contrast, despite their extensive multi-country presence, Veolia, Averda and Suez lagged behind, posting only modest workforce growth of 4%, 6% and 10% respectively.

More details

• As a leading player in South Africa’s waste management sector, EnviroServ’s growth could be attributed to its acquisition by Suez, a France-based global leader in water and waste management. The company appears to have leveraged this post-acquisition strategy to expand its workforce to 26, aligning with its growing operations in hazardous waste management, recycling and waste-to-energy solutions. Its low average tenure of 1.8 years further underscores this trend, pointing to a post-acquisition hiring surge dominated by newcomers. However, it added zero sales staff despite 136% overall growth, suggesting its expansion is more operational than commercial.

• Though small in size and with operations in only three countries in Africa, Waste Management Inc. increased its senior staff by 19 to reach 47. The company, which provides waste and recycling services to commercial and residential customers also recorded the highest growth of 40% in its sales and business development team. This suggests that it is keen on expanding its client base and strengthening market penetration in the region.

• The rapid growth rate of these relatively small players in the sector contrasts sharply with that of established multinationals. For instance, French firm Veolia recorded the lowest overall growth rate of 4% in its senior staff  and the slowest sales team growth of 10% among the three leading multinationals. This slowdown could be due to the company’s reliance on its seasoned workforce. Veolia has the most experienced staff in the dataset, averaging 14.5 years with a tenure of 8 years, suggesting it is leaning on stability and experience rather than rapid expansion.

• On its part, Dubai-based Averda’s slow growth across senior management and sales teams could reflect a focus on strategic, long-term expansion rather than underperformance. The company, which specialises in water and waste management as well as energy-from-waste plants, appears to be prioritising large-scale infrastructure projects in Africa. These investments are more likely to deliver gradual gains over time rather than immediate workforce expansion.

• As a multinational that acquired EnviroServ and later merged with Veolia, Suez’s slow pace of growth in Africa may reflect the complexities of post-merger integration and consolidation. The company did not significantly expand its team, suggesting a focus on streamlining its presence through its subsidiaries, Veolia and EnviroServ, while only adding minimal staff at the corporate level to support cross-regional operations.

• Europe-based Geocycle stands out for its notable workforce contraction, recording the sharpest decline of 11%, while its sales and business development team shrank by 29%.This downturn, tied to its cement-linked waste-to-energy model, contrasts sharply with the broader industry trend of smaller players scaling rapidly and may signal operational setbacks, restructuring or a strategic shift in its African operations.

• Zoomlion Ghana is notable for its scale in a single market. Despite operating only in Ghana, it has the largest sales and business development team among the players, at 109. This suggests a strategy built on depth in its home market rather than the thinner, more dispersed presence typical of multinationals.

Our take

• The faster growth of smaller players signals a power shift in Africa’s waste sector. If sustained, this trend could see homegrown and mid-sized firms capture market share and shape the continent’s circular economy trajectory more decisively than global giants.

• Multinationals may be ceding short-term growth to smaller rivals, but their emphasis on experience, infrastructure-heavy projects and integration remains powerful.

• The decline of players like Geocycle highlights that not all international models translate well to Africa. Firms overly reliant on a single niche, risk losing ground to competitors with more adaptable and diversified strategies.