Fourteen licences, and 10 lakh taka a year just to renew them
An e-waste business started in 2001, when dead phones and computers sold at 20-30 taka a kg, now needs 14 licences and about 10 lakh taka a year to renew them.
This trader in Segunbagicha, who used to deal in second-hand furniture, noticed in 2001 that people did not know what to do with dead phones and computers, which were going for as little as 20-30 taka a kg. Setting up to buy e-waste under contract from phone importers, telephone companies, banks and foreign organisations meant a long haul through trade licences, TIN certificates and Department of Environment clearances. By his account the trade now requires 14 licences, and renewing them costs about 10 lakh taka a year. The margin has thinned too: breaking up an old computer once yielded a decent weight of iron, aluminium or copper, but as circuits, motherboards and chips have shrunk, many devices now yield very little metal. A shop at Chankharpul in the same market stays open from 10 a.m. to 10 p.m. and buys 20,000-22,000 taka of material a day. The business runs, but regulatory cost on one side and shrinking metal content on the other are squeezing it from both ends.
Lessons
- 1.In a licence-heavy trade, the annual renewal bill is in practice the barrier to entry for a small operator
- 2.As devices shrink, so does the metal recovered per unit: breaking more of them does not restore the margin
We published this with the person's permission, without revealing who they are.
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