Collecting and selling scrap metal
Collect legal scrap such as old appliances, car parts and offcuts from homes and workshops, and sell it to a registered scrap dealer.
- To startR0 to R3 000
- First randabout 7 days
- WhereIn person
- Effort Easy to start
Is this for you?
Best for
Strong, practical people with transport and contacts at workshops and builders.
In South Africa: Works everywhere near a registered dealer.
What you need
- A phone is enough to start
- Works on everyday data
- No camera needed
- No cold selling
- At least 6 hours a week · age 18+
The money
What it can earn
- Pocket money
- A top-up
- A second income
- Can become a full income
This is usually pocket money: helpful, but rarely enough to live on by itself.
What people charge
No reliable SA figure yet
Scrap prices change daily and we found no published SA list we trust. Ask two registered dealers before you collect.
Costs to plan for
- Start-up
- R0 to R3 000
- Every month
- Transport, gloves and tools.
- Payment fees
- Dealers must pay electronically for scrap.
- Margin
- Transport is the main cost.
How it is paid: Rand per kilogram by metal type. Our viability score for it: 53 out of 100 (how we score).
How to start
Test it cheaply Before you spend
- Ask two registered dealers for prices by metal type
- Do one collection from a workshop
- Success signal: three regular pickup partners
First week Days 1 to 7
- Find two registered scrap dealers and ask what they buy and pay
- Make a list of workshops and builders near you
- Get gloves and safety boots
First month Days 8 to 30
- Agree regular pickups and keep a record of what you collected and sold
- Compare two dealers' prices before each sale
By three months Days 31 to 90
- Focus on the metals that pay best per trip
- Decide whether a trailer would pay for itself
Paid when you sell to the dealer. First income usually takes 1 to 21 days. A day-by-day version for your situation is in the full plan.
Collecting and selling scrap metal: your step-by-step start
18 short lessons with scripts, templates and rand prices to copy. R149 once-off, and the first lesson is free.
See what is insideCustomers and demand
Who pays
Registered scrap dealers.
Clears old metal from homes and workshops and returns it to industry.
Is there demand?
The Second-Hand Goods Act requires scrap dealers to record each seller's name, address and ID, and they must report scrap transactions. People selling their own scrap do not register. We found no reliable public price list for scrap metal, so ask dealers for today's prices.
Workshops and buildersHouseholds clearing old appliancesPanel beaters
Getting customers
Regular pickups from workshops and a sign offering free removal.
In-person networkingWord of mouth and referralsPartnerships with other businesses
Risks and rules
Watch out for
- Buying or collecting stolen metal (cable, manhole covers) is a serious crime: take only what owners give you
- Injury lifting heavy items
- Prices move with world markets
Competition: Moderate.
Room to grow: Grows with a bakkie and regular business pickups.
Legal and tax in South Africa
- Carry your ID; dealers must record it (Second-Hand Goods Act).
- Never take cable, railway or municipal metal.
- Register for income tax with SARS once you earn above the tax threshold, and keep a record of every sale and every cost (stock, materials, transport and fees are business costs).
Questions people ask
How much does it cost to start collecting and selling scrap metal in South Africa?
Our research puts start-up costs at about R0 to R3 000. Recurring costs: Transport, gloves and tools.
How long until the first income?
Typically about 7 days, and between 1 and 21 days. Paid when you sell to the dealer.
Can I do it with only a phone?
Yes, a smartphone is enough to start, although a laptop helps as you grow.
What about tax and legal rules?
Carry your ID; dealers must record it (Second-Hand Goods Act). Never take cable, railway or municipal metal. Register for income tax with SARS once you earn above the tax threshold, and keep a record of every sale and every cost (stock, materials, transport and fees are business costs).
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Researched by the Earn Path team · editorial policy