Viewed in conjunction with the draft National Waste Management Strategy (NWMS) 2026, a progressive policy framework aligned to the Sustainable Development Goals (SDGs) of Agenda 2030, it is clear that government is signalling a decisive shift in how the sector is to be managed, funded, and held to account.

For those of us working within the sector, this is not merely a fiscal document. It is a policy statement. For the IWMSA, it represents both a validation of the principles we have championed and an urgent call to action for all stakeholders in the value chain.

Key takeaways from the 2026 budget and the draft NWMS 2026

1. Performance-linked Funding for Municipalities

Perhaps the most significant development for our sector is the allocation of R27.7 billion over the medium term to support reform in metro trading services, including solid waste. Critically, the budget introduces a performance-linked model that mandates revenue collected for waste services to be reinvested directly into those same services – effectively ending the practice of cross-subsidisation that has for years starved waste infrastructure of the investment it requires.

Minister Godongwana was explicit in his warning: municipalities that fail to meet governance and operational reform targets will face budget reductions. In cases of serious capacity or governance failures, the delivery model will shift to an “indirect” approach, where other agencies will step in to build capacity and ensure service continuity. This is a structural intervention of considerable consequence.

From the IWMSA’s perspective, this accountability framework is both necessary and welcome. The sector has long grappled with the consequences of municipal financial distress. A model that rewards performance and penalises neglect creates the right incentive for meaningful change.

2. The Introduction of Deposit Return Schemes (DRS)

The draft NWMS 2026 introduces Deposit Return Schemes (DRS) as a mechanism to strengthen Extended Producer Responsibility (EPR), targeting packaging streams that have not met their recycling targets. This is a significant escalation in the EPR framework and one that the IWMSA views as a constructive development.

Historically, DRS has proven effective in increasing collection rates, driving consumer behaviour change, and enhancing accountability for Producer Responsibility Organisations (PROs). Its introduction signals that the government is prepared to move beyond voluntary compliance, where targets are not being met. It signals that compliance is non-negotiable and that producers must genuinely own their end-of-life responsibilities.

3. A broader focus on previously underserved waste streams

The NWMS 2026 prioritises several waste streams that have previously received insufficient regulatory attention. Over the next five years, specific interventions will target:

• Absorbent Hygiene Products (AHPs)
• Organic waste
• Clothing and textiles
• Automobiles
• Coal ash
• Construction and demolition waste
• Food waste.

These are complex, high-volume streams that present both significant environmental risk and meaningful economic opportunity. The formalisation of management frameworks for these streams is a development we have long advocated for, and we look forward to engaging constructively with the government on their implementation.

4. Circular Economy acceleration and infrastructure investment

The Budget Facility for Infrastructure (BFI) continues to support major capital projects, with a growing emphasis on alternative waste treatment technologies and waste-to-energy solutions. This infrastructure orientation, combined with the NWMS 2026’s ambitious target of creating 69,000 new jobs in the waste sector, underscores the government’s recognition of waste management as an economic driver – not merely a service obligation.

Equally noteworthy is the introduction of right-to-repair legislative frameworks, designed to extend product lifespans and reduce electronic waste. This speaks to a maturing circular economy policy environment in South Africa, one that is beginning to address the full lifecycle of products rather than focusing solely on end-of-life management.

For the IWMSA and its members, these developments represent both opportunity and responsibility. The infrastructure investment pipeline creates real prospects for private sector participation, innovation, and job creation. We encourage our members to engage with these opportunities actively.

5. Strengthening regulatory compliance

The NWMS 2026 mandates separation-at-source programmes across all metropolitan municipalities, secondary cities, and large towns – a foundational requirement for any functioning circular economy. This, paired with the 2026 budget’s commitment to tighter monitoring and enforcement of the NWMS, signals a regulatory environment that is increasingly acting in meaningful ways.

As an organisation, we have consistently emphasised that regulation without enforcement is ineffective. We are therefore encouraged by the direction of both the budget and the draft strategy, and we will continue to support the government in building the technical capacity and institutional frameworks required to make compliance a reality rather than an aspiration.

In closing: A turning point for the sector

When viewed in tandem, the 2026 budget and the draft NWMS 2026 represent a decisive departure from a business-as-usual approach. The message from the government is unambiguous: waste management is a strategic national priority, and the era of under-investment, poor accountability, and fragmented governance must come to an end.

The IWMSA welcomes this direction wholeheartedly. Our sector has the expertise, the commitment, and the capacity to rise to this challenge. What has been lacking, in many instances, is the policy framework and the political will to enforce standards consistently. The 2026 Budget and the draft NWMS 2026 suggest that both are now being brought to bear.

Expert insights by Patricia Schröder, President of the Institute of Waste Management of Southern Africa (IWMSA)