Proparco jointly provides €34 million to back development of new recycling facilities in Ghana and Senegal  

Proparco and OeEB, the Austrian DFI, join forces to provide a €34 million senior debt funding to Gravita Netherlands B.V. (GNBV), the overseas division head of Gravita India Limited (GIL). The group is a key player in the industrial recycling industry, especially in lead recycling, in India and overseas. Proparco and OeEB will support the international branch of GIL by increasing the recycling capacity and funding its daily needs.

During the last decades, waste management has become a major challenge globally as waste generation increases with the consumption of manufactured goods. In Africa, the recycling infrastructures, especially for lead-acid batteries from used vehicles, are still lacking in many countries even though international institutions such as the United Nations Environment Program (UNEP) are pushing to develop new facilities.

Founded in 1992 by the Agrawal family, Gravita has become a leading lead-acid batteries recycler in India and abroad. Today, the Group is a fast-growing company which operates five production sites through India and seven overseas (Africa, Asia). In the last years, Gravita has diversified on new verticals (aluminum, plastic) and new geographies and still has an ambitious strategy to develop new recycling units internationally.

The project is funded by Proparco and OeEB with a total commitment of 34 million euros. It will back the development of new recycling facilities in Ghana and Senegal in order to bring additional capacities and start new verticals (rubber, copper). The financing facility will also fund the daily needs of the overseas division of Gravita through its Working Capital Requirements. Overall, the project will allow Proparco to help a manufacturing player improving its E&S practices through an Environmental and Social Action Plan (ESAP).

The project will enable Proparco to support the development of the recycling sector in Africa by funding new capacities and to contribute to:

  • Climate change mitigation, by recycling scrap (instead of extraction), avoiding 28,994 tCO2eq per year.
  • Supporting sustainable manufacturing, by enhancing the recycled inputs for the industrial sector.
  • Providing alternatives to the extractive industry by fueling the circular economy.
  • Offering alternatives to informal smelting, coming with severe health issues and pollution.

The project is considered 100% climate finance and will support 4 SDGs: SDG 3 by reducing informal smelting, SDG 8 by fueling economic growth, SDG 9 by creating recycling infrastructure and SDG 13 due to the overall carbon emission savings.

This facility has been solely advised, structured and arranged by Azalea Capital Partners LLP, a Mumbai based boutique advisory firm.

Source: Proparco