The International Finance Corporation (IFC), the World Bank Group's subsidiary, is granting a $30 million loan to Averda. The Lebanese company will use it to finance the recycling of solid waste in Africa and the Middle East.
Financing for Averda is increasing. Since the beginning of 2022, two loan applications from the Lebanese company have already been approved. The second financing was recently released by the International Finance Corporation (IFC) on 26 May 2022. The value of the package is $30 million. “This is our first financing in the private waste management sector in Africa and the Middle East,” says the IFC.
According to the World Bank Group’s private sector financing arm, the loan to Averda aligns with the group’s 2021-2025 Climate Change Action Plan, which aims to boost climate finance for developing countries. Averda will therefore leverage the $30 million in financing to improve waste management. In particular, the company plans to reduce the amount of waste going to landfill while increasing the amount composted, recycled and converted to energy in Morocco and South Africa.
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In a recent report, the World Bank estimates that waste production will triple in sub-Saharan Africa and double in North Africa in the coming years. Averda wants to support Morocco and South Africa in the development of the circular economy, as well as the protection of the environment and human health.
In February 2022, the US Development Finance Corporation (DFC) showed interest in Averda’s work by providing funding. The $45 million loan will be used to build new plastic waste recycling plants in the various countries where the company operates in Africa, as well as in India. The products from these facilities will be sold to industries for reuse as secondary raw materials.
Inès Magoum
