• Norfund loans Mohinani Group to expand plastic recycling in Ghana, Nigeria
• Funding boosts rPET production capacity to 15,000 tons per site
• Builds on IFC support, advancing West Africa’s circular economy

Norfund, the Norwegian investment fund for developing countries, has granted a loan to the Mohinani Group, a plastics manufacturing, packaging, and recycling company. While the amount was not disclosed, the funding is intended to boost plastic recycling capacity in Ghana and Nigeria.

The investment will support the development of recycled polyethylene terephthalate (rPET), a material increasingly used in sustainable packaging solutions. The Mohinani Group's rPET facilities, operated by Polytanks Ghana Limited and Sonnex Packaging Nigeria Limited, each have an annual production capacity of up to 15,000 tons of rPET resin. This is expected to reduce the region's reliance on imported virgin plastics and stimulate the local industry.

"This collaboration with Norfund marks another major milestone in our sustainability journey," said Ashok Mohinani, chairman of the Mohinani Group. "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."

The partnership follows a $37 million loan from the International Finance Corporation to the same group for plastic recycling in Ghana and Nigeria.

For both Norfund and the IFC, this investment combines financial objectives with sustainable impact in a growing sector. rPET, particularly when it meets food-grade standards, represents a significant market opportunity with food and beverage companies that are committed to reducing their plastic footprint.

This type of financing is becoming increasingly crucial given the rise in global plastic production. According to the OECD, production has doubled in 20 years, yet only 9% of plastic waste is recycled. The organization estimates that developing countries need about 25 billion euros ($29.6 million) in annual investment to build effective waste management systems. However, current funding meets only 2% of this need, highlighting the importance of private capital mobilization to address the plastic crisis.

SG