Norfund backs plastic recycling expansion in Ghana and Nigeria

WEST AFRICA – Norfund, the Norwegian government’s investment fund for business development in emerging markets, has announced a major investment in the Mohinani Group to scale up plastic recycling in Ghana and Nigeria.

The investment, structured as a loan, is expected to reduce unmanaged waste, lower greenhouse gas emissions, and create thousands of jobs across two of West Africa’s largest economies.

“This investment in Mohinani Group aligns with our efforts to develop the plastic recycling sector, one of Norfund’s investment areas, in collaboration with industrial partners,” said Naana Winful Fynn, Norfund’s Regional Director for West Africa.

“By supporting the company to build high-capacity recycling infrastructure, we aim to strengthen collection chains, create jobs, reduce dependency on imports, and improve lives.”

The funding will support two modern plants for recycled PET (rPET), one in Ghana and one in Nigeria, with a combined annual capacity of 15,000 tonnes of food-grade plastic.

These facilities will enable “bottle-to-bottle” recycling, where used bottles are transformed into new ones, reducing reliance on virgin PET resin.

Approximately 90% of raw materials will be sourced locally through small businesses engaged in waste collection, providing significant economic opportunities, particularly for women and young people.

Ashok Mohinani, Chairman of the Mohinani Group, described the partnership as a “major milestone” in the company’s sustainability journey.

“Together, we are intensifying efforts to close the loop for bottle-to-bottle recycling across West Africa and beyond, while creating more jobs, enhancing the circular economy, and driving environmental impact,” he said.

The project builds on a US$37 million loan from the International Finance Corporation (IFC) earlier this year.

IFC also provide advisory services to ensure efficient and sustainable recycling operations, further strengthening environmental and social standards.

Globally, plastic use has surged, doubling in the past 20 years, yet only 9% of waste is recycled. In Sub-Saharan Africa, consumption is relatively low at 16 kilograms per person annually, compared to 156 kilograms in OECD countries.

However, weak waste management systems mean that much of the plastic ends up in open dumps or the environment, with just 6% recycled, according to the OECD’s Global Plastics Outlook 2022.

The Mohinani initiative is expected to create over 4,000 direct and indirect jobs, generate annual savings of about US$21 million on resin imports for each country, and build resilience in local manufacturing.

Experts say such private investments are vital, as developing countries require over EUR 25 billion annually to close the waste management gap, yet aid currently covers less than 2% of that need.

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