Dubai's move to introduce a charge for plastic bags, and eventually ban them, will drive momentum for other governments to follow suit and protect the environment, a leading Rwandan environment official has said.
In 2008, Rwanda issued a law banning the use of all polythene plastic bags.
In the next few years, it also aims to become completely plastic free, with a few exceptions, such as plastics needed for packaging vaccines and other medical items.
Implementing the law was not easy. We had a huge push back from businesses that were profiting from selling plastic bags
Faustin Munyazikwiye,
Rwandan Environmental Management Authority
Since the widespread ban on commercial use of plastic bags, both urban and rural areas in the country have become cleaner.
The move earned Rwanda the reputation of being one of the greenest countries in Africa, and in 2008 the UN Habitat declared the capital Kigali one of the cleanest cities in the region.
Speaking to The National, Faustin Munyazikwiye, deputy director general for the Rwandan Environmental Management Authority (Rema), said there are challenges when implementing such a policy.
“Rwanda was among one of the first countries that started the policy of banning plastic bag importation, use and manufacturing,” he said.
“Our journey started in 2004 and the law came into effect four years later.
“Plastics were having such a negative impact on the environment. They were killing aquatic animals, even domestic animals because they would consume these plastics.
“One of the integral reasons we enforced this ban was because of the long-term impact on agriculture and the environment.”
Plastic bags, which take hundreds of years to degrade, are a major global issue blamed for clogging oceans and killing marine life.
In 2017, Kenya also enacted a rule to punish anyone making, selling or importing plastic bags, with as much as four years in jail or a fine of up to $19,000 (Dh70,000).
Mr Munyazikwiye said after carrying out a lot of field research in Rwanda, the authority noted plastic litter was "impacting the penetration of water on soil", which in turn was affecting crop growth for farmers.
There was also a big loss of animal life, such as chickens and cows, which many farmers rely on to make a living.
“Implementing the law was not easy. We had a huge push back from businesses that were profiting from selling plastic bags,” he said.
“Educating the public on the benefits of the move was the mainstay of our awareness campaign.
“Once we shed a spotlight on how plastic bags were impacting the environment and livelihoods, people started to slowly come around to the idea.”
Local businesses encouraged to produce alternatives
Initially, a ministerial instruction was adopted by the Cabinet in 2004 to limit the use and manufacture of plastic bags in Rwanda.
Local businesses were encouraged to produce alternative packaging from biodegradable materials like papers, cotton and banana leaf bags.
Businesses that had plastic bags in their stores were given three years to finish their stocks.
In 2008, a law banning polythene bags was enacted. While the ministerial instruction had no specific provisions for fines and penalties, the new law does, including imprisonment for some cases.
“It has been a long journey and continues to be, but we are working with the business community and private sector to help them find opportunities to create alternative, eco-friendly packaging,” he said.
“It has also created a new business for collecting and recycling plastics.
“There are some exemptions for certain sectors, like healthcare, that can use plastic bags for medical waste, but the commercial use is banned.”
Shortly after the ban was enforced, REMA noticed many passengers entering from nearby countries were bringing in plastic bags with no knowledge of the law.
Since then, it has deployed staff to collect plastic bags from passengers at border points and the airport.
“Some of the biggest impacts on Rwanda’s environment is that our drainage systems are no longer clogged by plastic waste, which leads to less floods in the rainy season,” he said.
“Plastics are no longer scattered on agricultural land resulting in increased water penetration into the soil.
“It has been a tough road, and we have not reached our full vision yet, but one of the biggest challenges was changing peoples’ mindset towards plastic bags."
Earlier this month it was announced Dubai will introduce a charge of 25 fils for single-use plastic bags from July 1.
The emirate's Executive Council said the charge would be applied in retail, clothing, restaurants and pharmacies, as well as on delivery orders and e-commerce orders.
The charge will be evaluated in stages before single-use plastic bags are banned completely in two years' time.
“I think the UAE’s move to charge for, and eventually ban plastic bags, will create great momentum for other countries to follow suit," said Mr Munyazikwiye.
“It's a great move and will push other hesitant countries to act. If the UAE can do it, others can [also do it].”
Countries that have already banned plastic bags: in pictures
COMPANY%20PROFILE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
More from Rashmee Roshan Lall
Apple%20Mac%20through%20the%20years
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MATCH INFO
Champions League quarter-final, first leg
Manchester United v Barcelona, Wednesday, 11pm (UAE)
Match on BeIN Sports
Tour de France
When: July 7-29
UAE Team Emirates:
Dan Martin, Alexander Kristoff, Darwin Atapuma, Marco Marcato, Kristijan Durasek, Oliviero Troia, Roberto Ferrari and Rory Sutherland
Company%20profile
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Spain drain
CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
Details
Through Her Lens: The stories behind the photography of Eva Sereny
Forewords by Jacqueline Bisset and Charlotte Rampling, ACC Art Books
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
