THE International Finance Corporation (IFC) has announced a $37 million partnership with Ghana-based Mohinani Group Limited to establish PET recycling plants in Ghana and Nigeria. The initiative aims to reduce plastic waste, cut import costs, and create over 4,000 jobs.
Under the agreement, IFC will provide funding to Polytank Ghana Limited and Sonnex Packaging Nigeria Limited, both subsidiaries of Mohinani Group. Each plant will have the capacity to produce 15,000 tons of recycled PET (rPET) resins annually, replacing virgin plastics used in food and beverage packaging.
Boosting local supply chains and job creation
The recycling plants will source 90 percent of their raw materials from local small businesses involved in plastic collection. This will strengthen local supply chains and reduce plastic imports by $21 million annually in each country.
Roshan Mohinani, Strategy and Transformation Manager for Mohinani Group, highlighted the initiative’s impact: ‘This project was born out of a vision to close the bottle-to-bottle recycling loop in Africa while advancing environmental sustainability. It will also provide economic empowerment by creating jobs, particularly for young people and women.’
Environmental benefits and climate action
PET (Polyethylene Terephthalate) is widely used in food and beverage packaging. Recycling PET waste will:
- Lower greenhouse gas emissions by reducing the need for virgin plastics.
- Prevent environmental pollution from discarded plastics.
- Improve the circular economy by reusing existing plastic materials.
Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa, emphasized the broader impact: ‘By recycling 30,000 tons of PET waste annually, these plants will not only protect the environment but also promote local production over imports.’
Aligning with global sustainability goals
Beyond recycling, IFC will provide advisory support to enhance Mohinani’s environmental and social practices, ensuring efficient and sustainable operations.
The initiative aligns with IFC’s climate action strategies for Ghana and Nigeria, which focus on:
- Reducing plastic waste and emissions.
- Creating jobs and boosting economic transformation.
- Supporting sustainable local industries.
It also supports the World Bank Group’s Climate Change Action Plan (2021-2025), which aims to reduce virgin plastic use and promote eco-friendly packaging solutions.
With IFC’s financial backing and Mohinani Group’s expertise, West Africa’s PET recycling capacity is set to expand significantly. This initiative will drive sustainability, create jobs, and reduce plastic waste, making a lasting impact on the environment and the economy.
