In Nigeria and Ghana, Norfund is making its first two direct investments in the continent’s plastic recycling industries. “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, Investment Director for Green Infrastructure at Norfund.
Wecyclers Nigeria Limited, a recycling business with offices in Lagos, has received a convertible loan from Norfund in the amount of EUR 2 million. In order to enhance Miniplast Ghana Ltd.’s recycling capability, Norfund is simultaneously announcing a USD 10.5 million investment in the Accra-based company.
A new facility for recycling PET bottles for use in new bottles both locally and in Europe will be financed by the investment in Wecyclers. The factory would be in Nigeria’s Ogun state and have a 12 000 ton annual capacity.
With Norfund’s investment in Miniplast, the company’s recycling capacity will be increased to 1,700 tonnes per month, lowering production costs and allowing for a greater use of locally sourced recycled materials in place of imported plastic resins.
Miniplast started an internal plastics recycling company in 2020 that uses plastic trash from the neighborhood. The company uses these recycled plastics to make its finished items and sells the leftovers to other businesses.
More than 850 jobs across the plastics value chain are anticipated to be created as a result of the investment in Miniplast.
“While the contributions of these two investments may seem small compared to the overwhelming challenge of plastic pollution, by showcasing a functioning model, they enable the development of an industry and the promotion of a culture of waste management. They will be Norfund’s first of many planned investments into the sector”, stated Wahlund.
