IFC, Averda Ink Landmark Deal To Support Waste Management In The Middle East And Africa
IFC, Averda Ink Landmark Deal To Support Waste Management In The Middle East And Africa. A landmark new agreement between IFC and Averda International, one of the largest privately owned integrated waste management companies in the Middle East and Africa, is helping to bring innovative waste solutions to emerging markets in the two regions.
IFC is providing a $30 million loan to build the UAE-based company’s resilience post-pandemic and enable it to continue its planned growth in Oman, Morocco, and South Africa. The groundbreaking agreement will help deliver climate benefits through private-sector-led integrated waste management services.The agreement marks IFC’s first investment in the private waste management sector in Africa and the Middle East.
Averda provides waste management services to more than 60,000 private and public sector clients, covering around 12 million residents across eight countries in the Middle East, Africa, and South Asia. The company is increasingly focusing on sustainable solutions that extract value from waste, reducing the use of the planet’s limited natural resources and driving the circular economy.
“Humankind is in a race to change the way we use our resources and it’s a race we can’t afford to lose,” said Malek Sukkar, the CEO of Averda. “This IFC loan will help us all by significantly accelerating our sustainable projects in Oman, Morocco and South Africa. It will allow Averda to reduce the waste sent to landfill while increasing the volumes composted, recycled and transformed into energy, progressing us towards a more circular economy.”
According to a World Bank report, waste generation is expected to triple in sub-Saharan Africa and double in North Africa. The investment aligns with the World Bank Group’s Climate Change Action Plan of 2021-2025 to boost climate finance to developing countries and IFC’s commitment to supporting cross-border investments.
“Recycling the rapidly growing volume of waste to eliminate permanent harm to the environment is crucial to minimize damage to our fragile ecosystems, water bodies, and air quality,” said Hela Cheikhrouhou, IFC’s Regional Vice President for the Middle East, Central Asia, Turkey, Afghanistan, and Pakistan. “This partnership is also an excellent example of how IFC supports innovative UAE-based companies in expanding their footprint to emerging markets.”
IFC’s cross-border investments with Gulf Cooperation Council-based companies to date stands at $5.1 billion from IFC’s own account and $3.4 billion in mobilization, financing 148 projects totaling $22 billion.
