The Norwegian Investment Fund for Developing Countries (Norfund) has invested US$10.5 million in Miniplast Ghana Ltd.
The investment is to support the company’s expansion plans across its manufacturing and recycling segments.
Commenting on the investment, Investment Manager of Norfund, Obafemi Awobokun, said supporting local manufacturing and recycling initiatives would help create many decent jobs not only at Miniplast, but across the entire plastics value chain.
He said this impact was further amplified in what is a challenging macroeconomic climate for many Ghanaians.
He noted that this investment was in line with Norfund’s strategy to invest patient capital in scalable enterprises in manufacturing and waste management within Sub-Saharan Africa.
“In addition to supporting increased local tax revenue and foreign exchange generation in one of West Africa’s major markets, Norfund’s investment in Miniplast is expected to create more than 850 jobs across the plastics value chain,” he stated.
The Chief Executive Officer of Miniplast, Nadim Ghanem, for his part, said the company was committed to improving socio-economic opportunities for Ghanaian citizens by increasing access to high-impact employment and advancing technological innovations in the plastic recycling industry.
“Through our approach, we emerged the winners of the 2022 (11th) edition of the AGI Ghana Industry and Quality Award for Best Practices in Sustainable Manufacturing.
“We partner with equally passionate stakeholders who also dedicate their knowledge and finances to building resilient economies and safe communities,” he stated.
He said Norfund was the ideal partner to assist with its sustainable expansion.
“We are confident that we will have outstanding ESG results and innovative business impacts for the industry and country, especially with Norfund’s expertise guiding us..
“Through this investment, Norfund is supporting efforts to develop a circular economy in Sub- Saharan African markets to help tackle Ghana’s waste management challenges,” he stated.
He said Norfund would also look to support Miniplast in its efforts to institutionalise what has historically been a family-run business, particularly on the environmental, social and governance fronts.
Also commenting on the investment, Regional Director for West Africa for Norfund., Naana Winful Fynn, said “we are excited to be growing our portfolio in Ghana by partnering with the management and owners of Miniplast, a company which is doing important work on the local value addition front whilst also contributing to addressing the country’s plastic waste problem.”
He said by investing to further increase the company’s production and recycling efforts, whilst increasing local sourcing, job creation and import substitution, Norfund aim to contribute to the company’s growth and institutionalization, as well as to development.
In 2020, Miniplast established an in-house plastics recycling business segment that uses plastic waste that it sources locally and processes into recycled plastic materials.
These recycled plastics are then used by the company in the manufacturing of its finished products, as well as sold to third parties.
Headquartered in Accra, Miniplast has a current production capacity of 41 tonnes of plastic per day, and directly employs over 650 people, whilst indirectly giving employment to over 200 more.
The company also has waste collection and grinding hubs in Kumasi and Tamale.
Norfund’s investment will go towards purchasing new manufacturing equipment and supporting Miniplast to expand into new product offerings.
Also, the investment will finance new machinery to increase the Company’s recycling capacity to 1,700 tonnes a month, further substituting locally sourced recycled materials for imported plastic resins, and hence, reducing production costs in the process.
Norfund aims at creating jobs and improving lives by investing in businesses that drive sustainable development.
The fund is owned and funded by the Norwegian Government and is the Government’s most important tool for strengthening the private sector in developing countries, and for reducing poverty.
Norfund’s committed portfolio totals US$3.1 billion in Sub-Saharan Africa, South- East Asia, and Central America.