The International Finance Corporation (IFC) has signed an agreement with Senegalese cement manufacturer Sococim for the decarbonization of the industrial sector in Senegal.
The partnership aims to boost the low-carbon production of cement, thereby reducing emissions across the hard-to-abate industry. The IFC has arranged a $256 million financing package for Sococim, comprising a $122.4 million loan from the IFC’s personal account as well as $129.6 million in loans from Société Générale Sénégal; CBAO Groupe Attijariwafa Bank; Banque Internationale Pour Le Commerce et I’Industrie du Sénégal and Ecobank.
Of the total financing, $227 million has been allocated as green financing, representing the IFC’s first-ever green loan for base-material manufacturing.
With the financing, Sococim will be able to commence with the modernization of its clinker-producing plant, with the company looking at replacing part of its current clinker lines with new, fuel-efficient ones.
This process will utilize up to 70% of alternative fuels, thereby boosting efficiency and reducing greenhouse gas emissions by up to 312,000 tons equivalent per year, enabling the company to produce cement with one of the lowest emission rates globally.
Speaking on the partnership, IFC Managing Director, Makhtar Diop, stated that, “IFC’s landmark investment in a hard-to-abate sector aims to not only accelerate the decarbonization process in Africa’s cement sector, but also drive sustainable development, economic growth and boost affordable housing development in Senegal and beyond.”