IFC Partners with Mohinani Group to Launch PET Recycling Initiatives in Ghana and Nigeria

“IFC's partnership with Mohinani underscores our dedication to promoting environmental sustainability and economic development in Ghana and Nigeria,” said Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa.

The International Finance Corporation (IFC) has announced a strategic partnership with Ghana-based manufacturer Mohinani Group Limited to spearhead the recycling of Polyethylene Terephthalate (PET) from plastic waste in Ghana and Nigeria. This initiative is set to significantly benefit the environment while creating over 4,000 direct and indirect jobs across the two countries.

Under this partnership, IFC will provide a $37 million loan to support the establishment of PET recycling plants by Mohinani Group subsidiaries, Polytank Ghana Limited and Sonnex Packaging Nigeria Limited. Each facility will have the capacity to produce 15,000 tons of recycled PET (rPET) resins annually. These resins will substitute virgin PET resins commonly used in the production of food-grade packaging containers for beverages and other products.

Approximately 90% of the raw materials needed for the recycling process will be sourced from local small businesses involved in plastic collection, fostering local entrepreneurship and promoting a circular economy. Combined, the plants are expected to generate over $21 million in annual savings from reduced imports in each country.

Environmental Impact and Economic Empowerment

PET, a polymer resin from the polyester family, is widely used in making containers for liquids and foods. Transitioning to recycled PET reduces the need for virgin plastics, significantly lowering greenhouse gas emissions due to the smaller energy footprint of recycled materials. This move will help prevent harmful pollutants from entering the environment and support broader climate change mitigation efforts.

“The rPET project by the Mohinani Group was born out of a vision to close the bottle-to-bottle recycling loop in Africa and reflects the Group’s commitment to advancing environmental sustainability,” said Roshan Mohinani, Strategy and Transformation Manager for Mohinani. “Beyond environmental benefits, this initiative is expected to create over 4,000 jobs along the value chain in Nigeria and Ghana, empowering young people and particularly women through new economic opportunities.”

IFC’s Commitment to Sustainable Development

“IFC's partnership with Mohinani underscores our dedication to promoting environmental sustainability and economic development in Ghana and Nigeria,” said Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa. “By recycling up to 30,000 tons of PET waste annually, these new plants will protect the environment and substitute imports with locally recycled materials.”

In addition to financial support, IFC will provide advisory services to enhance Mohinani’s environmental and social practices and boost the efficiency and sustainability of PET recycling operations.

Alignment with Global Climate Goals

This project aligns with IFC’s broader strategies for Ghana and Nigeria, which focus on mitigating climate change, fostering job creation, and driving economic transformation. It is also consistent with the World Bank Group’s Climate Change Action Plan 2021-2025, aiming to reduce the use of virgin plastic resins and lower greenhouse gas emissions within the packaging materials value chain.

The PET recycling initiative marks a significant step forward in addressing plastic waste challenges in West Africa, promoting environmental stewardship, and contributing to sustainable economic growth.