IFC backs West African recycling business
IFC loan of $37 million to help Mohinani Group establish recycling plants in Ghana and Nigeria.
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The International Finance Corporation (IFC) has announced a partnership with Ghana-based manufacturer Mohinani Group to undertake the recycling of polyethylene terephthalate (PET) from plastic waste in Ghana and Nigeria.
Under the partnership, IFC will provide a loan of $37 million to help Mohinani Group subsidiaries Polytank Ghana and Sonnex Packaging Nigeria to establish PET recycling plants in Ghana and Nigeria.
Each plant will have the capacity to produce 15,000 tonnes of recycled PET (rPET) resins annually that will substitute virgin PET resins used to make food grade and beverage packaging containers. Some 90% of the raw materials will be sourced from local small businesses involved in plastic collection. Combined, the new plants are expected to create more than 4,000 direct and indirect jobs across the value chain and approximately $21 million in annual savings from imports for each country.
PET is a polymer resin of the polyester family, widely used for making containers for liquids and foods.
“The rPET project by the Mohinani Group was born out of a vision to close the bottle-to-bottle recycling loop in Africa and the group’s dedication to advancing environmental sustainability,” said Roshan Mohinani, strategy and transformation manager for Mohinani. “It is also inspired by our group's purpose of improving the quality of lives in Africa, as this initiative is expected to create over 4,000 jobs along the value chain in Nigeria and Ghana, thereby providing economic empowerment to a significant number of young people, particularly women.”
“IFC's partnership with Mohinani underscores our dedication to promote environmental sustainability and economic development in Ghana and Nigeria,” said Dahlia Khalifa, IFC regional director for Central Africa and Anglophone West Africa. “By recycling up to 30,000 tonnes of PET waste annually, these new plants will protect the environment and substitute imports with locally recycled materials.”
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