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Operations - Opportunities

Growth of a Sustainable Business

The ITAD sector is relatively new and there are very few reputable competitors in this market.
We are subject experts when it comes to ITAD in Africa. There is an ongoing opportunity to educate corporate
South Africa on sustainable ITAD solutions. Our conservative estimate is that the ITAD industry is worth more
than ZAR 1 billion.
With an estimated 20% ITAD adoption rate amongst corporate South Africa, there is massive business
potential.
The Protection of Personal Information Act 4 of 2013 (PoPIA) comes into force on 1 July 2021. This will create
enormous opportunity as non-compliant entities will be liable to paying fines. In addition, increased media
attention to this legislation will draw attention to ITAD, creating opportunities for expansion.

Market Growth

We experienced increased demand for our products during the reporting period. Demand exceeded supply
in 2020, partly due to COVID-19 supply chain disruption.
Lower entry costs are allowing for more used equipment to be purchased. The secondary user IT equipment
market for a tier 1 business machines is thriving because of the low cost compared to entry level new
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equipment. For instance, a 4 Generation Intel® Core™ i5 (approx. R 5,000.00) AND a 10 Generation Intel®
Core™ i7 (approx. R 17,000.00) can both run the latest versions of Microsoft Windows 10 professional with
Office installed, without any loss in performance. This is just one example of how we provide functionality at
a cheaper price.

Reseller’s growths present a viable means for our business to grow. There is great potential for us in
supporting circular economy efforts by entrepreneurs in the refurbished equipment space.

Ecommerce is a lucrative means of reaching new markets and new clientele. The refurbished IT market has
matured, and customers are not hesitant to purchase online.

Procurement

The supplies we procure are mostly end of end-of-life computer equipment from local corporate
companies.

We target brands with a reduced carbon footprint. The brands we refurbish are manufactured by Dell, HP,
and Lenovo these global manufactures have sustainable practices and use RoHS compliant materials.
Some of the items we use are imported, this increases our carbon footprint through freighting. We aim to
reduce the number of computers we import. Importing used PC equipment accounts for 5% of the energy
used by manufacturer’s computers. On analysis, we re-import equipment as we are often the secondary
destination for the equipment (2nd journey)

Once we reduce imports, we would save an estimated 530 457,2 kgCO2e (including the 2nd journey) which
was emitted during transportation of our imports in 2020.

Since we import the bulk of our spare parts from China, there is an opportunity to reduce spare part imports
from 15% to 10% over the next 2 years as we improve our refurbishment techniques.

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