In a significant boost for environmental sustainability and job creation, the International Finance Corporation (IFC) has partnered with Ghana-based manufacturer Mohinani Group Limited to spearhead the recycling of Polyethylene Terephthalate (PET) from plastic waste in Ghana and Nigeria. This strategic alliance marks a pivotal moment in Africa’s journey towards a circular economy and reduced dependency on virgin plastics.
Under this partnership, IFC will extend a loan of $37 million to support Mohinani Group’s subsidiaries, Polytank Ghana Limited and Sonnex Packaging Nigeria Limited, in establishing large-scale PET recycling plants. Each facility will boast an annual production capacity of 15,000 tons of recycled PET (rPET) resins. These resins will serve as substitutes for virgin PET used in manufacturing food-grade and beverage packaging containers. By sourcing 90 percent of the raw materials from local small businesses engaged in plastic collection, the initiative not only bolsters the recycling ecosystem but also stimulates local economies.
The environmental benefits of the project are profound. PET, a polymer resin widely used in packaging, contributes significantly to plastic waste. By recycling this material, the initiative will help prevent harmful pollutants from being released into the environment while lowering greenhouse gas emissions. Recycled plastics require less energy to produce compared to new plastics, thus reducing the overall energy footprint.
Roshan Mohinani, Strategy and Transformation Manager for Mohinani Group, explained,
“The rPET project was born out of our vision to close the bottle-to-bottle recycling loop in Africa and our commitment to advancing environmental sustainability. This initiative is expected to create over 4,000 jobs along the value chain in Nigeria and Ghana, providing economic empowerment, especially for young people and women.”
For its part, Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa, emphasized the broader impact of the collaboration:
“IFC’s partnership with Mohinani underscores our dedication to promoting environmental sustainability and economic development in Ghana and Nigeria. By recycling up to 30,000 tons of PET waste annually, these new plants will protect the environment and replace imports with locally recycled materials.”
Beyond financing, IFC will offer advisory services to enhance Mohinani’s environmental and social practices and to build capacity for efficient, sustainable operations in PET recycling.
This initiative is well-aligned with IFC’s strategies for mitigating climate change, generating jobs, and driving economic transformation in Africa. It also supports the World Bank Group’s Climate Change Action Plan 2021-2025, which aims to reduce reliance on virgin plastics and curb greenhouse gas emissions in the packaging industry.
As Africa continues to grapple with plastic waste and environmental challenges, the IFC–Mohinani partnership represents a forward-thinking model that not only protects the planet but also drives economic growth and job creation across the continent.
