Key information
Main city: Kampala, Uganda.
Scope: City/town level; Sub-city level
Lead organisations: Urban Action Lab, Makerere University
Timeframe: 2018 – 2022
Themes: Informal settlements; Education and skills; Energy; Informality; Waste management
Funding sources: UK Research and Innovation (UKRI) Global Challenges Research Fund (Urban-KNOW funder). Budget: GBP 250,000.
Approaches used in initiative design and implementation:
- Community-led enterprises: development of business model and seed funding.
- Focus on circular waste economy at the city level.
- Focus on the long-term sustainability of interventions through monitoring and evaluation.
- Iterative codesign and co-implementation involving city-system analysis and needs assessment.
- Prioritising and facilitating community knowledge and learning exchange.
Initiative description
Background and context
Kampala city generates large amounts of waste every day, of which 36% is not collected (Aryampa et al., 2019) and about three-quarters is organic (Oates et al., 2019) – the latter produced by the biomass materials that the city consumes. Indiscriminate organic waste disposal makes liveability in the city challenging, especially in informal settlements where most uncollected garbage is found and which are home to 60% of the city population.
Most Kampala city residents (76%) use wood or charcoal for cooking. Use of key biomass products for fuel, such as charcoal, has adverse impacts on nature and the climate.[1] In contrast, energy briquette-making consists of practices to manage organic waste and turn it into useful fuel-alternative products.
Ugandan government data indicates that 1.2 million tonnes of agricultural wastes are available each year, and an additional 1,500 tonnes of municipal solid waste are estimated to be produced in Kampala city. This signals that a larger share of the charcoal trade could be replaced by briquettes made from waste.[2] Examples from existing community-based enterprises in Kampala producing briquettes suggest that the technology has enormous but relatively unrealised potential to simultaneously improve city-level waste management, support alternative livelihoods, and provide low-income households with a cheaper and more sustainable source of cooking energy (Lwasa et al., 2020). The effect of briquette use on household economics is substantial. Compared with charcoal, briquettes provide a longer cooking time (burning for up to four hours), better combustion efficiency, and more consistent and reliable heat output. Research has found that households can realise cooking-energy cost savings of up to 49% by switching from charcoal to briquettes, which for low-income households across the city represents potential average annual savings of UGX 206,000 (USD 57) (Kizito, 2024).
Knowledge in Action for Urban Equality (Urban-KNOW) was a GBP 6 million, five-year (2017-22) research consortium funded by UKRI through the Global Challenges Research Fund and led by The Bartlett Development Planning Unit at University College London. Urban-KNOW’s work in Kampala focused on coproducing knowledge to identify and ignite pathways for small and medium-sized enterprises (SMEs) to harness organic waste streams for energy production – and specifically the potential of briquette-making business models to provide alternative livelihoods and as a means of integrating vulnerable communities into the urban economy.
[1] Uganda’s per capita charcoal consumption in urban areas is around 120kg annually (Ferguson, 2012) and in 2012, Kampala’s annual charcoal demand was over 200,000 tons. Each ton requires about 88 medium-sized trees to be felled, adding up annually to around 18 million trees. Charcoal is mainly used in urban areas, and charcoal use has increased at around 6% per year, matching the urbanisation rate.
[2] The average price of regular charcoal has significantly increased since 2008, and these price trends make an economic case for cheaper briquettes, which can last longer for most households, depending on family size and cooking habits.
Summary of initiative
This project took place in four informal settlement zones across three divisions of Kampala, from 2019 to 2022, as part of the Urban-KNOW research consortium (see above). The work of Urban-KNOW in Kampala was led by the Urban Action Lab (UAL) at Makerere University, with other partners including the NGO, ACTogether Uganda, and the municipal government, Kampala Capital City Authority (KCCA). Project implementation took a multistakeholder approach that considered both the need to increase the share of briquettes in the household energy mix but also in the city’s energy chain, as well as the consequent needs and implications for policy and regulatory reform. As well as the agencies mentioned above, stakeholders included community members of two existing briquette-making groups (Kasubi Parish Local Community Development Initiative and Lubaga Charcoal Briquette Cooperative Society Limited), national policymakers from the Ministry of Land, Housing and Urban Development, civil society organisations and researchers. Their roles are described in detail in the agencies table below. The multistakeholder approach was key to bringing together stakeholders and bridging the information gaps that exist between policymakers and communities. And the codesign and co-implementation approach yielded stakeholders’ co-ownership of the project and ensured both political and local community buy-in.
The approach followed an iterative process and initial activities demanded significant investment of time, establishing the foundation for the initiative's eventual success. In particular, knowledge coproducing activities laid the groundwork for designing a community-based business enterprise model focused on the entire briquettes value chain. These began by mapping the numerous groups and individuals who were already involved in microlevel briquettes production but unable to meet the city’s growing demand for briquettes and greener energy in general. This identified a series of constraints that interrupt business operations and slow down performance and potential growth among micro and small-scale entrepreneurs, especially in the briquette industry – such as limited start-up capital or internal financing, limited access to business development support services, lack of adequate feedstock sources, inadequate space for drying briquettes, and limited consumer awareness about the potential energy cost savings from using briquettes. There are also considerable constraints for Kampala’s small and microscale briquette enterprises to grow and upgrade equipment and machinery by making new investments, including, among others, low start-up capital, low efficiency and higher costs per unit of revenue, and limited access to external finance.
The initiative’s lead agencies recognised the huge growth potential, considering that, for example, community briquette producers possess varying levels of expertise (knowledge, skills, process plans and business strategies). The project therefore designed a model for coproducing knowledge, whereby more advanced briquette-making groups trained others, thus eliminating biases of “expert-based training”. Through exchange visits and peer-to-peer learning, the project provided skills training in product development, business planning, financial recordkeeping, branding and marketing. A spiralling effect of knowledge was observed, whereby groups – and group members also affiliated to other groups – were able to pass on knowledge to their wider networks. Successive capacity-building activities took place across the whole energy briquettes value chain, a process that includes: solid waste generation, collection and transportation; solid waste drying, charring, mixing with a binder and moulding/compaction; and product drying, packaging and taking to the market (see Figures 1 and 2).


Seed grants. Sixteen briquette-making groups were involved, with an average membership of 17. At the end of the project, groups were invited to submit business plans applications for seed grants, which were then awarded to seven groups in the form of a set of briquette-making machines (carboniser, mixer, crusher and press machine). ACTogether Uganda subsequently led oversight of the seeding process and seed grant monitoring to determine further needs and gaps and act as ongoing backstop to the groups (see also the learning section below).
Target population, communities, constituents or "beneficiaries"
The multistakeholder research focused on unemployed residents of informal settlements (mainly women and youth) and aimed to build their capacity to both address challenges existing in their local neighbourhoods as well as harness opportunities to improve livelihoods and incomes. The focus on new groups was rooted in the desire to integrate women and youth otherwise faced with insecure livelihoods into the energy briquette sector. The capacity-building component also meant that there was space for established groups – including briquette production groups, women’s saving and development associations — as well as new groups, to submit business plans in response to the seed grant call.
A total of 272 people were involved as direct beneficiaries (16 groups, with an average membership of 17) and received training along the whole briquette value chain. Groups came from informal settlements in four parishes (Bwaise III, Kasubi III, Masanafu, Namungona) across three of Kampala’s five divisions (Rubaga, Makindye and Kawempe). Indirectly, the number of beneficiaries is harder to establish because many individuals were also part of other groups, both within and outside their settlement communities, enabling a spiralling effect of knowledge-sharing through their networks, supporting other business start-ups towards integration into the urban economy.
ACRC themes
The following ACRC domains are relevant (links to ACRC domain pages):
- Informal settlements (primary domain)
- Health, wellbeing and nutrition
- Neighbourhood and district economic development
- Youth and capability development
Over 60% of Kampala’s population live in informal settlements, where waste collection services are frequently lacking. The initiative improved collection of otherwise uncollected organic waste as well as providing residents with cleaner energy alternatives. Better waste management improves health and contributes towards reducing the intensity and coverage of city flooding events attributed (in part) to solid waste blocking drainage channels. For informal settlement dwellers, low-cost initiatives to improve their lives are very important and the briquettes business model project was built on this premise.
The project also connects with the neighbourhood and district economic development domain, as it focuses on codesigning with communities innovative enterprise models for energy briquette production that can both provide opportunities for small-scale economic activities and improve the functioning of cities’ waste collection and energy consumption systems.
The following ACRC crosscutting themes are also relevant (links to ACRC domain pages):
Gender
Largely women and youth groups took part in the cogenerative and codesigned process to propose enterprise model solutions best suited to their individual and collective circumstances. This project emphasis was intentional, focusing on groups that are often marginalised in Kampala’s informal settlements and urban economy.
Climate change
According to the UNFCCC, 0.8kg of solid waste briquettes is equivalent to 1kg of traditional average quality charcoal. Briquettes are considered a carbon neutral fuel, since they utilise organic waste that would otherwise decompose and emit greenhouse gases like methane. By converting this waste to a useful energy source, briquettes help in emissions reductions. Studies in similar geographical contexts comparing briquette fuel to firewood have found that about 1.81kg of carbon dioxide emissions could be saved for each kilogram of organic waste (Robert and Reiner, 2012).
What has been learnt?
Effectiveness/success
The initiative’s understanding of success followed the broad objective areas set out below.
Partnerships, collaboration and engagements. Project activities were designed to provide spaces and platforms that encouraged the building, extending and strengthening of working relationships among multiple stakeholders. This approach was key to bridging information gaps that exist between policymakers and communities, and achieving a level of political co-ownership of the project, as well as local community buy-in.
Long-term sustainability of business models. Many youth and women groups involved in the project continue to operate up to the time of writing. They continue to explore opportunities for continued growth, including by expanded their revolving fund and mobilising new members, so that activities can continue, even if some members leave. This means that they can collectively put together their labour and time to produce more briquettes and aggressively market them for the wider market. Groups continue to learn from one another through peer mentoring, not only in terms of what has worked or not worked in their groups, but also to ensure that they can amicably resolve conflicts amongst themselves.
Networks and connections in the community and city. All seven funded groups have forged positive, useful relationships with other groups and individuals, as well as local markets and organisations. More recently, the seeded groups have participated in a series of Green Advocacy and Youth Entrepreneurship events aimed at building a coalition of green advocates.
Group governance: All the groups have remained focused, with clear visions and purposes. Moreover, within the individual groups there is a deliberate division of responsibilities to allow for members to gain new skills and feel a sense of ownership of their groups and activities. Moreover, the groups engage in regular reflections on what is working well and what can be improved.
Contributing to policy conversations at city and national level. Through project engagements and continued regular meetings with KCCA staff and others, focused on scaling up briquette production in the city, the municipality, national Ministry of Lands, Housing and Urban Development, and marginalised urban communities involved could appreciate energy briquettes’ role in city waste systems and the potential contribution of the business models to urban livelihoods. Policymakers involved have committed continued support to the project and to mainstreaming lessons and recommendations into policy development and implementation, including in the Greater Kampala Metropolitan Solid Waste Management Strategy (2022), as well as the national Uganda Micro, Small and Medium Enterprise (MSME) Policy (2015). Because of the city’s inadequate waste collection, transportation and disposal of waste, and with the understanding that private sector participation can be deepened with the recognition of informal wastepickers, the energy briquettes project was able to garner support and relational responsibilities among all stakeholders. The initiative has also built momentum for support of investments in sustainable energy production and waste management,[3] and created an opportunity for KCCA to identify other key actors involved in energy provision in informal settlements.
Curriculum review at Makerere University: Lessons from the URBANKNOW project have informed ongoing work to revise Makerere University’s curriculums for BA in Geographical Sciences and MA in Land Use and Regional Development Planning, in particular as relates to energy planning and policy and local economic development.
Rather than familiar “hand-outs”, the groups involved appreciated the capacity enhancement approach, which attached the seed grant machines awarded to the business plan proposals the groups had submitted. They recognised the value and started up new income-supplementing businesses to take advantage of the knowledge, materials and demand for the energy briquettes. Consensus has since emerged among the groups to produce briquettes independently, but to then pool briquettes produced and collectively market the product, with the aim to not only satisfy the huge demand for briquettes, but also to improve and standardise product quality, as well as enhancing briquette-producers’ bargaining power to get a better price.
Success for this initiative connects with two of the preconditions which the ACRC has identified as catalysts for urban reform.
Mobilised citizens pushing for change: One of the aims of the project was not only to develop business models to change waste to wealth, but also to socially engineer an inclusive and participatory process that involves marginalised groups – especially women and youth – taking the lead in driving business development and briquette enterprises in their locations. This process was mindful not only of the existing political and social structures that exist in communities; but also of community groups and champions that have supported similar initiatives in Kampala.
Formal and informal coalitions: The initiative has created multistakeholder spaces of continued dialogue and co-learning between government, city authorities, community groups, academic institutions, civil society and NGOs. The initiative has also brought together actors along the briquette value chain to share knowledge and experiences but also advocate for recognition at city level of small and micro enterprises as important players in household energy economics and production.
[3] The aim of the Ministry of Kampala Capital City and Metropolitan Affairs is to mobilise and invest up to US$30 million in the waste sector, collect and safely manage up to 65% of all generated waste, divert at least 35% of the collected waste from reaching the landfill, reduce per capita emissions by 30%, reduce greenhouse gas emissions by 15% and create up to 50,000 jobs by 2030 (GGGI, 2022).
Understanding limitations
Group expectations. During the project’s initial stages, challenges related to effectively communicating the potential medium- and long-term benefits of the project to interested community groups. Some groups temporarily left the training activities when they did not realise immediate benefits, although they later returned.
Loss of social capital during the Covid pandemic. In 2020, the impact of the Covid-19 lockdown had a significant adverse effect on the groups involved. Their operations were carried out under a social enterprise model and all activities had to be postponed, including suspending capacity-building workshops. Once the Ministry of Health relaxed restrictions on gatherings the groups were, with difficulties, able to return to normal operations. Much of the cohesion that had been built had disappeared and group leaders had to put in a lot of effort, for example during group meetings, to regain what had been lost.
Commercial potential of briquettes and cost of equipment. While most of the project groups were content with small-scale operations, viewing briquettes making as simply as one of several income-generating activities, the commercial potential of briquettes has started to be realised at scale by some individuals and groups, as well as at city and national levels (see potential for scaling below), with commercial actors now actively investing in mechanised equipment, expanding customer bases and improving product quality. However, imported equipment to facilitate mass production is expensive, and there is therefore a heavy reliance on locally fabricated machinery, whose costs are still out of the reach for many low-income enterprises.
Potential for scaling and replicating
Project groups. Since the project concluded, many of the briquette-making groups involved have sought further support from the Presidential Initiative for Wealth and Job Creation (Emyooga), the Youth Livelihood Programme and, most recently, the Parish Development Model – seeking to expand production capacity and further develop the briquette value chain, including storage and marketing. It is envisaged that, with these interventions, the groups/micro entrepreneurs will grow into small- to medium-scale briquette producers, using locally available machinery, which can produce 20-200 tons of briquettes annually. With sustained and supported growth potential and adequate investments, opportunities also exist to grow businesses to large-scale production facilities (over 200 tons per year).
Low-income communities in Kampala. ACTogether Uganda, through their association with the SDI-affiliated National Slum Dwellers Federation of Uganda network, have widened the scope of the enterprise model, and more groups have since started producing briquettes, for both domestic and institutional cooking. However, despite the effort and success registered, most energy briquettes-making groups are still producing at a micro-level and are unable to meet the city’s growing demand.
Unmet market demand. In 2018, the Uganda Investment Authority put forward investment proposals for a 70-ton per day (20,000 tons per year) manufacturing plan for briquettes made from solid waste collected from households and surrounding markets in Kampala city, of which it estimates 1,500 tonnes are produced daily. However, the market demand for briquettes in Kampala city is far higher, at an estimated 19,000 tons per year for households and 93,000 tons per year for businesses (IWMI, (2015).
Scaling considerations and barriers in Kampala
The potential for scaling up is therefore huge. Considerations include:
- The quantity of feedstock available to sustain briquette-making enterprises across the city (see above). Another opportunity is recycled charcoal fines, which are small particles lost during retail and distribution, estimated at 10-15% of charcoal produced, equating to at least 70,000 tons annually. Currently, charcoal fines are popular feedstock for small-scale briquette producers, as they can be collected locally, cheaply and have already been processed (raw biomass turned to char) (Ferguson, 2012). However, this creates an unsustainable dependence on the charcoal trade.
- A wide established network of charcoal and firewood sellers and distributors across the city, which can be used as briquette selling points to force customers to change from what they are familiar with to briquettes.
- Higher charcoal prices, making an economic case for briquettes.
However, a number of issues need to be resolved, including but not limited to the following:
- Briquettes can be made from any biomass material, but feedstock choice determines fuel heating potential. Across the city, the feedstock available to producers is mixed, resulting in briquettes with varying calorific values and other characteristics, which can disincentivise buyers. For example, some briquettes are more difficult to light, or to extinguish and relight (Wagabaza, 2023). Another example is animal manure, which results in briquettes with a low calorific value and so is normally used to add bulk to other woody material, making commercial-scale collection difficult (Ferguson, 2012).
- Unlike charcoal, briquettes’ compatibility with existing cooking equipment is a crucial factor, often requiring the purchase of a specially designed “energy saving stove”. This restricts demand: the improved stoves are sold at a relatively higher price than most residents can afford, despite the long-term fuel cost saving advantages, so city residents stick with traditional charcoal stoves as the cheaper short-term option. Institutions like schools, prisons and military barracks also do not have the required facilities, and it will require a long process of awareness raising to wean them off firewood.
- User preferences need to be taken into account. Charcoal use is deeply ingrained in the traditional cooking behaviour of many Kampala households, making it difficult for new alternative fuels, such as briquettes, to compete.
Participating agencies
Further information
Further resources
References
IWMI (2015). Market Assessment of RRR Business Models – Kampala City Report. International Water Management Institute.
Kizito, G (2024). “A socio-economic and technical evaluation of briquettes produced for household and small-medium enterprises energy supply in Uganda”. Unpublished Master of Geographical Sciences Dissertation, Makerere University, Kampala.
Mugisha, YY, Tarimo, WM, Mbacho, S and Kiobia, DO (2022). “Towards adaptation of briquettes making technology for green energy and youth employment in Tanzania: A review”. Journal of Power and Energy Engineering 10(04): 94–93.
Robert, OA and Reiner, L (2012). “The use of organic waste as an eco-efficient energy source in Ghana”. Journal of Environmental Protection 3: 553–562.
Cite this case study as:
Mbabazi, J, Mukwaya, PI and Kisembo, T (2024). “Innovative waste economies for inclusive urban development: A business model to change waste to wealth in informal settlements”. ACRC Urban Reform Database Case Study. Manchester: African Cities Research Consortium, The University of Manchester. Available online.
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