Posted on

Norfund makes the first two landmark direct investments in plastic recycling in Africa in Nigeria and Ghana

New Investments

Norfund makes the first two landmark direct investments in plastic recycling in Africa in Nigeria and Ghana

| Article

Norfund, the Norwegian Investment Fund for Developing Countries, has announced its first-ever direct investments in plastic recycling initiatives in Africa.

The development finance institution is committing $2 million as a convertible loan to Wecyclers Corporation, a recycling company based in Lagos, Nigeria. Simultaneously, Norfund is investing $10.5 million in MINIPLAST Ghana Ltd, a leading plastics manufacturer located in Accra, Ghana, to enhance its recycling capabilities.

 

Norfund’s decision to support these ventures aligns with its commitment to showcasing successful models that can contribute to addressing the pervasive issue of plastic pollution while generating a significant number of employment opportunities. “By showcasing functioning models, we can enable the development of an industry that is crucial in tackling the challenges of plastic pollution while creating a large number of jobs,” stated Carl Johan Wahlund, Norfund’s Investment Director for Green Infrastructure.The EUR 2 million convertible loan provided to Wecyclers will be used to establish a new PET-bottle recycling plant in Ogun state, Nigeria.

 

The plant is expected to have an annual capacity of 12,000 tons and produce recycled PET materials for local use and export to Europe.

In addition to this, Norfund’s USD 10.5 million investment in MINIPLAST Ghana Ltd will be utilized to procure advanced manufacturing equipment and machinery. This injection of funds will significantly boost the company’s recycling capacity, allowing it to process 1,700 tonnes of plastic waste per month.

 

The increased use of locally sourced recycled materials will help minimize dependence on imported plastic resins and reduce production costs.

The urgency of combating plastic pollution cannot be understated, as current estimates indicate that more than 171 trillion pieces of plastic are now floating in the world’s oceans, with projections showing a potential tripling by 2040. Establishing effective plastic collection systems is crucial in addressing this issue. However, such methods are complex, even in high-income countries, and even more challenging in developing nations with inadequate waste regulations and limited enforcement of extended producer responsibility.

 

MINIPLAST Ghana Ltd ventured into in-house plastics recycling in 2020. The company utilizes locally sourced plastic waste, recycling it in their finished products and selling surplus recycled plastics to third parties.

Norfund’s investments in Wecyclers Corporation and MINIPLAST Ghana Ltd represent a significant step towards combatting plastic pollution and promoting sustainable practices in the recycling industry.

 

By funding these pioneering ventures, Norfund is supporting job creation and championing environmentally responsible solutions to one of the world’s most pressing challenges.

Related Articles

Register Now

Empower Africa Times Newsletter

Share :

You may also like...

Posted on

MaxAB: The trailblazing Egyptian startup revolutionizing supply chains and empowering retailers

StartUp Spotlight

MaxAB: The trailblazing Egyptian startup revolutionizing supply chains and empowering retailers.

| Article

MaxAB, short for Maximum Aspiration, is a cutting-edge Egyptian startup founded in 2018.

Based in Cairo, MaxAB was established with a vision to disrupt the traditional supply chain model and optimize the way essential products reach retailers across the country. MaxAB operates as a business-to-business (B2B) e-commerce platform, leveraging technology to transform the wholesale market landscape.

 

MaxAB’s mission is to provide small and medium-sized retailers convenient access to a vast range of products while empowering them to thrive in a dynamic marketplace. By leveraging technology and data-driven insights, MaxAB aims to revolutionize supply chains, streamline operations, and improve the overall efficiency of the retail ecosystem in Egypt.

 

MaxAB’s commitment to transforming supply chains and empowering retailers has not gone unnoticed. Their innovative approach and remarkable achievements have garnered recognition and praise both locally and internationally. By revolutionizing the retail landscape in Egypt, MaxAB is making a lasting impact on the economy, empowering entrepreneurs, and improving the lives of countless individuals.

Related Articles

Register Now

Empower Africa Times Newsletter

Share :

You may also like...