Lebanon's Averda is signing a loan agreement with the US-based International Development Finance Corporation (DFC). The $45 million in financing will allow the waste management and recycling company to expand into the plastic’s circular economy in Africa and India.
Less than six months after British investment bank HSBC provided $30 million in funding to strengthen its operations in Africa and expand into Asia, Averda is getting funding again.
The Lebanese company will leverage a $45 million loan from the U.S. International Development Finance Corporation (DFC) to improve plastic waste management and recycling in Africa and India. “This loan is included in the latest round of quarterly investments totalling more than $1.1 billion that DFC is investing in innovative and promising development projects around the world,” Averda says.
Reducing plastic pollution in Africa
Averda manages waste, particularly industrial waste in South Africa and household waste in Morocco. While plastic is not a priority for the company, it is a major source of pollution throughout Africa. According to the United Nations Development Program (UNDP), on average 13% of municipal solid waste generated in sub-Saharan Africa is plastic waste. This amount is expected to double by 2025 if nothing is done.
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The Lebanese company wants to reverse the trend. With funding from DFC, Averda plans to build new plants to recycle plastic waste in the various countries where it operates in Africa. The products from these facilities will be sold to industries that can use them as secondary raw materials. “Our growth strategy, Renew24, will enable us to expand our sustainable waste services over the next few years to ensure that as much waste as possible is diverted from landfill,” says Samir Sharma, Averda’s CFO.
Inès Magoum
