IFC discloses $39m fund for Nigeria’s plastics, recycling industry
•PET Resin plant to process 30,000 tons used plastic yearly
The International Finance Corporation (IFC), has announced a $39 million financing package to build a Continuous Polymerisation PET Resin plant in Ogun State, which would source over 20 percent of its raw materials from local waste plastics, thereby strengthening Nigeria’s recycling and manufacturing sectors.
The financing package includes a $24 million senior ‘A’ loan from IFC and a $15 million subordinated loan from the International Development Association’s private sector window blended finance facility.
The funding, which would be released to Engee Manufacturing Limited, a Nigerian manufacturer of PET resin used in packaging soft drinks, and other household and pharmaceutical products, would help reduce the plastic wastes in the environment.
Nigeria has no efficient disposal, recycling, and waste management system for its plastic and non-plastic waste, with most solid waste ending up in landfills, drainages, beaches and water bodies.
With the funding, Engee’s new Polyethylene Terephthalate (PET) plant could double the number of plastic bottles recycled in Nigeria through a process of collecting, cleaning, and processing up to 30,000 tons of used plastic bottles every year.
Commenting on the development, Managing Director, Engee Manufacturing Limited, Alexander Gendis, said the loan would support the company’s efforts to grow Nigeria’s packaging for drinking water, beverages, and pharmaceutical industries, as the plant would be the first in the country.
“This will be only the second of such plant anywhere in sub-Saharan Africa. The plant and process are enough to fast-track the evolution of plastics recycling in the country, and support jobs along the recycling value chain. This will be a big win for Nigeria’s economy and its environment,” Gendis said.
In her remarks, Country Manager for Nigeria, IFC, Eme Essien Lore, said IFC’s partnership with Engee reflects the Corporation’s support for Nigeria’s private sector, especially at this difficult time when the global economy is facing the challenge of COVID-19.
She said the new factory would make positive contributions to Nigeria’s manufacturing sector by boosting job growth, while potentially revolutionising the recycling industry, noting that the new plant is expected to be fully operational within the next 24 months.
Engee is a leading player in the production of bottle grade resins in Nigeria, recently emerging as one of the fastest growing manufacturers of packaging materials. IFC will also provide Engee with advisory services support to implement a plastics waste recycling programme specifically for bottle-grade resins.
The investment in Engee underscores IFC’s growing commitment to Nigeria, with investments focused on sectors including healthcare, agribusiness, manufacturing, technology, and Small and Medium Enterprises (SME) financing.
No comments yet