Dubai, United Arab Emirates, May 26, 2022—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.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org
About Averda:
Averda is the leading waste management company in the emerging world, operating in the Middle East, Africa and South Asia. The company provides a broad range of services to over 60,000 clients - large and small - across private and public sectors. These include the municipal authorities of major cities and household names in a wide range of sectors including oil & gas, automotive, retail and hospitality.
Founded in 1964 and headquartered in Dubai, Averda increasingly focuses on providing sustainable solutions which extract value from waste, reducing use of the planet's limited natural resources and driving the circular economy. The company's portfolio of services range from collecting bins and cleaning city streets to sorting, composting and disposing of household waste as well as safely managing highly-regulated hazardous waste streams including medical waste and dangerous chemicals. Recent investments have further developed the company's waste treatment capabilities, with the goal of providing circular recovery options in all markets.
The company currently employs over 14,000 people worldwide, helping to provide secure employment amongst the communities it serves. Protection of environmental and human health is the company's highest priority, and it operates in full compliance with international standards for quality control wherever it operates, currently: the UAE, Saudi Arabia, Oman, Qatar, Morocco, South Africa, Republic of Congo and India. For more information visit www.averda.com
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