Rural migration and rapid urban growth have led to socio-environmental problems in many Latin American cities, of which waste accumulation, housing shortages, and unemployment are three of the most obvious. Conventional waste management strategies and scholarly discourses on the circular economy pay little attention to the practice of informal waste collection, and there is a lack of literature on industrial ecology in Latin America. The example of Santiago de Chile is used to highlight the problems of conventional management of industrial residues and household solid waste. Using examples from several Latin American countries with a focus on Buenos Aires, Argentina, a strategy for an urban-industrial symbiosis is developed that addresses SWM. This eco-industrial development strategy is based simultaneously on the involvement of informal waste pickers and the development of waste-based construction products to improve the urban habitat by providing sustainable construction products. The technical aspect is covered by international guidelines for the design of new sustainable products. Finally, we compile the perspectives of the stakeholders involved and their options for implementing this strategy.