€242m financing package for Senegalese cement maker

To support the decarbonisation of Senegal’s industrial sector, the IFC announced a partnership with Sococim Industries, Senegal’s largest integrated cement manufacturer, which will boost low-carbon cement production, create jobs and help bridge the country’s housing gap.

IFC has arranged a €242 million financing package for Sococim, a subsidiary of French cement maker Vicat S.A. The package comprises a €120 million loan from IFC’s own account and €122 million equivalent in local currency parallel loans from Societe Generale Senegal, CBAO Groupe Attijariwafa, Banque Internationale Pour Le Commerce et l'Industrie du Senegal, and Ecobank Senegal. Societe Generale Senegal has been appointed as the administrative agent to manage the local currency financing with the other lenders. 

The majority of the financing-€214 million- will be earmarked for green activities, making it IFC's first green loan for base-material manufacturing in Africa. While cement is a critical building material, the industry is carbon-intensive, especially during the production of clinker, key component of cement. The funds will support Sococim's long-term financing needs, which include a €260 million investment to modernise its clinker-producing plant near Senegal's capital, Dakar. 

The company plans to replace part of its current clinker lines with one new fuel-efficient one, utilising up to 70% of alternative fuels and boosting energy efficiency. 

"IFC's landmark investment in a hard-to-abate sector aims to not only accelerate the decarbonisation process in Africa's cement sector, but also drive sustainable development, economic growth, and boost affordable housing development in Senegal and beyond," said IFC managing director, Makhtar-Diop.