Norfund, the Norwegian government’s investment fund for business development in developing countries, is investing in Mohinani Group to support plastic recycling in Ghana and Nigeria. The investment in the form of a loan aims to reduce waste, cut greenhouse gas emissions, and create jobs in two of West Africa’s largest economies.
“This investment in Mohinani Group aligns with our efforts to develop the plastic recycling sector, one of Norfund’s investment areas, in collaboration with industrial partners. By supporting the company to build high-capacity recycling infrastructure, we aim to buttress and develop collection chains, help to create jobs and improve lives, reduce dependency on imported inputs and decrease the amount of unmanaged waste. Along with the IFC, we look forward to supporting the company to operationalize these projects, as well as to additional collaborations,” says Naana Winful Fynn, Norfund’s Regional Director for West Africa.
Mohinani Group has established two modern facilities for recycled PET (rPET) – one in Ghana and one in Nigeria – with a combined annual capacity of up to 15,000 tonnes of food-grade recycled plastic. This will replace virgin plastic in the production of bottles and packaging, helping meet global requirements for increased use of recycled materials.
“This collaboration with Norfund marks another major milestone in our sustainability journey. 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,” said Mr. Ashok Mohinani, Chairman of the Mohinani Group.
Globally, plastic production has doubled over the past 20 years, yet only 9 percent of plastic waste is actually recycled. In 2019, recycled plastic accounted for just 6 percent of the feedstock for new plastic, despite a fourfold increase in production over the same period. In Sub-Saharan Africa, each person uses only 16 kilograms of plastic per year on average, compared to 156 kilograms in OECD countries. However, large amounts of waste end up in open dumps or in nature due to inadequate waste management, and only 6 percent of plastic waste is recycled (Global Plastics Outlook 2022).
Recycling creates new jobs
Mohinani Group is a family-owned industrial conglomerate with roots in Africa and operations in Ghana, Nigeria, Kenya, Dubai, and Hong Kong. The group employs over 5,000 people and is a leader in plastic manufacturing, packaging, trade, and recycling. In collaboration with local collection partners, the company has built a network of over 30 actors in Ghana and Nigeria to secure sufficient plastic waste as raw material.
“The project is expected to create around 500 direct jobs and up to 3,000 indirect jobs in collection, transport, and logistics. It will also help reduce plastic pollution, cut greenhouse gas emissions, and strengthen local industry,” says Fynn.
According to OECD, developing countries need over EUR 25 billion in annual investments to build adequate waste management systems. Current aid covers less than 2 percent of this need, making private capital mobilization essential to solving the plastic crisis.