Egypt-based circular economy platform Dawar has significantly expanded its operational reach by acquiring a strategic stake in the consumer recycling application, BekyaPay. This acquisition enables Dawar to extend its influence directly to the household level, integrating source-level collection into its existing digital infrastructure for recyclable material flows.

Dawar operates as a crucial digital infrastructure layer, meticulously recording and verifying the movement of recyclable materials across various collection points, aggregators, and traders. Over the past three years, the company has documented more than 90,000 tonnes of recyclables across 22 governorates, showcasing its significant impact on formalizing the recycling value chain.

BekyaPay, launched less than a year ago, has rapidly built a network connecting over 30,000 users through 500 collection points and 120 collectors across two governorates. Its innovative model allows households to exchange sorted recyclable waste for cash, thereby incentivizing participation in the circular economy from the grassroots level.

The integration of BekyaPay is a pivotal move for Dawar, providing it with unprecedented access to data at the initial point of waste generation, before materials enter potentially informal trade networks. This enhances traceability across the entire recycling chain and significantly improves oversight of material flows, a critical step towards a more organized and transparent waste management system.

This strategic transaction aligns with Egypt's evolving regulatory landscape, which is seeing tightened Extended Producer Responsibility (EPR) requirements and expanding environmental, social, and governance (ESG) reporting standards. Dawar is strategically positioning itself as an essential compliance infrastructure provider, helping companies navigate the increasing regulations within the waste management and recycling sectors.

Waste management in Egypt traditionally suffers from fragmentation, with a substantial portion of recyclable material being handled by informal collectors. Digital platforms like Dawar and BekyaPay are instrumental in formalizing these flows by accurately recording volumes and linking various actors across the entire value chain. The stricter EPR rules mandate manufacturers and importers to account for the lifecycle of their products' packaging and materials, pushing them to document collection rates and recycling outcomes.

Furthermore, ESG reporting is becoming a standard practice for listed firms and exporters. By capturing granular data at the household level, Dawar can offer verified reporting to producers striving for compliance. This digital traceability not only aids regulatory adherence but may also attract funding specifically tied to climate and circular economy targets. The model mirrors similar platforms in other emerging markets that aim to bridge informal networks with regulated systems. If data quality and scalability continue to improve, this digital waste infrastructure holds the potential to bolster policy enforcement and foster new financing models directly linked to verifiable recycling performance.