In a major step towards environmental sustainability and economic empowerment, the International Finance Corporation (IFC) has partnered with Ghana-based manufacturer Mohinani Group Limited to launch large-scale recycling of Polyethylene Terephthalate plastic waste (PET recycling) in Ghana and Nigeria. The initiative aims to protect the environment while generating thousands of jobs across both countries.
As part of the agreement, IFC will provide a $37 million loan to support Mohinani Group subsidiaries—Polytank Ghana Limited and Sonnex Packaging Nigeria Limited—in establishing PET recycling plants in Accra and Lagos. Each facility will have an annual production capacity of 15,000 tons of recycled PET (rPET) resins, reducing reliance on virgin plastic resins typically used in food-grade and beverage packaging.
A key highlight of the project is its commitment to local sourcing—90% of raw materials will be collected by small businesses engaged in plastic waste collection. This move will not only curb plastic pollution but also stimulate local economies. The recycling plants are expected to generate over 4,000 direct and indirect jobs while saving approximately $21 million per year in plastic resin imports for both Ghana and Nigeria.
PET, a widely used polyester resin, is a primary material in food and beverage packaging. Recycling PET reduces harmful pollutants and cuts down the carbon footprint associated with virgin plastic production. Recycled plastics require significantly less energy, contributing to lower greenhouse gas emissions and advancing climate resilience in West Africa.
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“The rPET project by Mohinani Group was born out of a vision to close the bottle-to-bottle recycling loop in Africa and our commitment to environmental sustainability,” said Roshan Mohinani, Strategy and Transformation Manager at Mohinani Group. “Beyond environmental benefits, this initiative will economically empower thousands, particularly women, by creating jobs along the recycling value chain in Ghana and Nigeria.”
Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa, emphasized the broader impact of the partnership. “IFC’s collaboration with Mohinani highlights our commitment to promoting sustainability and economic growth in Ghana and Nigeria. By recycling up to 30,000 tons of PET waste annually, these plants will reduce pollution, create jobs, and boost local industries by substituting imports with locally recycled materials.”
Beyond financial support, IFC will provide advisory services to enhance Mohinani’s environmental and social governance practices, ensuring the efficient and sustainable operation of the recycling facilities.
This initiative aligns with IFC’s broader strategy for Ghana and Nigeria, focusing on climate change mitigation, job creation, and economic transformation. It is also in line with the World Bank Group’s Climate Change Action Plan 2021-2025, which seeks to reduce reliance on virgin plastics and lower greenhouse gas emissions within the packaging industry.
By investing in PET recycling, the partnership between IFC and Mohinani Group marks a significant step toward a circular economy in West Africa—where waste is repurposed, resources are conserved, and communities thrive.
