Qrent’s managing executive, Kwirirai Rukowo, warns that South African companies, particularly those in the tech sector, can no longer afford to ignore extended producer responsibility (EPR).
Rukowo says enforcement under section 18 of the National Environmental Management Waste Act is now a reality. Businesses that have treated EPR as someone else’s problem could soon discover that it has become a boardroom issue, with regulatory, financial and reputational consequences attached.
“As enforcement intensifies, organisations must recognise that EPR obligations extend across six key industries that manufacture, import, or brand identified products.
“Within the technology sector, however, the growing volume of electronic waste has placed IT equipment firmly in the spotlight,” he explains.
Giant tech in the room
More concerning, industry estimates indicate that fewer than one in 10 electronics producers are currently meeting their EPR obligations.
While the regulator disputes there was ever a grace period for compliance, EPR is no longer simply an environmental initiative. It’s a business governance issue that belongs alongside financial, legal and cyber risk in every boardroom.
He warns that every company that manufactures, imports or places electrical and electronic equipment on the South African market is legally responsible for ensuring that those products are managed responsibly at the end of their useful lives through an approved producer responsibility organisation (PRO) or an independently approved scheme.
Many executives remain unaware that compliance extends well beyond paying a levy or registering with a PRO.
Businesses must demonstrate accurate reporting, meet prescribed collection targets, and maintain records that prove they are fulfilling their obligations.
As regulatory oversight increases, organisations that cannot produce this evidence may face far greater scrutiny than they anticipated.
“The consequences extend far beyond the regulator.
“Customers, investors and procurement teams are increasingly evaluating suppliers on their environmental, social, and governance performance,” he adds.
Credibility risk
An organisation that cannot demonstrate responsible lifecycle management of its technology assets risks losing credibility in the market and may find itself excluded from procurement opportunities where sustainability has become a prerequisite rather than a differentiator.
This marks a significant shift in how organisations should think about technology procurement.
Today, responsibility extends throughout the entire lifecycle of that technology asset.
Procurement decisions now influence future compliance, sustainability reporting, data security, and corporate governance.
Rukowo says technology financing can play a valuable role in helping organisations adapt to this changing landscape.
“A structured leasing model enables businesses to plan predictable technology refresh cycles while ensuring that equipment is recovered through controlled end-of-life processes.”
“Certified refurbishment, secure data destruction and responsible recycling become embedded within the technology lifecycle instead of becoming costly and complex projects years later.”
Reduce, reuse and recycle
The transition towards a circular economy is accelerating across South Africa and globally.
Regulators increasingly expect producers to demonstrate accountability not only for the products they sell, but also for how those products are recovered, reused, and recycled.
Organisations that integrate lifecycle management into their technology strategy today will be significantly better positioned to meet future regulatory requirements while extracting greater long-term value from their technology investments.
Compliance should never begin when enforcement starts.
It should begin when responsible business practices make commercial sense.
Extended producer responsibility has moved beyond policy discussions and environmental aspirations.
It is now an operational and governance requirement that demands immediate executive attention.
“Organisations that act now will reduce compliance risk, strengthen their sustainability credentials and build technology strategies that are fit for an increasingly regulated future,” he concludes.
