IFC is partnering with Sococim Industries, Senegal's largest integrated cement manufacturer, to support the decarbonization of the country's industrial sector. IFC arranged a €242 million financing package for Sococim, a subsidiary of French cement maker Vicat. The package...
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IFC is partnering with Sococim Industries, Senegal's largest integrated cement manufacturer, to support the decarbonization of the country's industrial sector.
IFC arranged a €242 million financing package for Sococim, a subsidiary of French cement maker Vicat. The package comprises a €120 million loan from IFC's own account and €122 million equivalent in local currency parallel loans from commercial banks.
The majority of the financing – €214 million – will be earmarked for green activities, making it IFC's first green loan for base-material manufacturing in Africa. While cement is a critical building material, the industry is carbon-intensive, especially during the production of clinker, a key component of cement. The funds will support Sococim's long-term financing needs, which include a €260 million investment to modernize its clinker-producing plant near Senegal's capital, Dakar.
The company plans to replace part of its current clinker lines with one new fuel-efficient one, utilizing up to 70% of alternative fuels and boosting energy efficiency. That will help reduce greenhouse gas emissions by 312,000 tonnes of CO2 equivalent per year by 2030 — enabling Sococim to produce cement with one of the lowest emission rates in the world.
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