IFC Supports Senegal’s Low-Carbon Cement Industry with €75M Green Loan

Green Loan to Drive Decarbonization in Cement Production and Strengthen Senegal’s Construction Sector.

In a significant move to advance low-carbon cement production and support Senegal’s construction and housing sectors, the International Finance Corporation (IFC) has announced a €75 million green loan for Sococim, the country’s largest integrated cement manufacturer. This investment is poised to create jobs, reduce greenhouse gas emissions, and address critical housing gaps in the region.

The financing will enable Sococim to modernize its operations by integrating efficient technologies and alternative fuels, including solar energy and refuse-derived fuels. These innovations are expected to cut greenhouse gas emissions by 312,000 tons of CO2 equivalent annually by 2030. Additionally, the project is projected to create approximately 4,700 indirect and induced jobs along the construction value chain.

Cement, while essential for affordable housing and infrastructure development, is a carbon-intensive industry. Clinker production accounts for 90 percent of cement’s CO2 emissions, making modernization crucial for reducing the environmental impact of the sector.

Leaders in Green Cement Production

Elhadji Mamadou Seck, CEO of Sococim Industries, stated: “This investment will help us accelerate the implementation of our 2019 Climate Plan. By modernizing our kiln lines, we are fully committed to decarbonization, reducing our environmental footprint, and enhancing energy efficiency. Furthermore, IFC’s investment signifies that Sococim will deliver a green, clean, and high-value-added cement to our customers.”

Makhtar Diop, Managing Director of IFC, echoed the sentiment, emphasizing the broader impact of the initiative: "IFC's investment in Sococim underscores our commitment to sustainable development in Senegal. By supporting low-carbon cement production, we are not only reducing greenhouse gas emissions but also addressing the critical housing gap in the country. This initiative is a significant step towards a greener and more inclusive future for Senegal."

Broad Impact Across Senegal

This collaboration aligns with IFC’s broader efforts to strengthen Senegal’s housing value chain. In addition to its partnership with Sococim, IFC has supported other projects such as Kajom Capital and promoted the EDGE certification program for local real estate developers to encourage sustainable construction practices.

In February 2023, IFC also backed Sococim with a financing package aimed at scaling up operations and introducing sustainable production practices.

Record Investments in Senegal

During the fiscal year ending June 30, 2024, IFC committed approximately $615 million in investments and mobilizations in Senegal—a record for the organization in the country. These investments span sectors such as vaccine production, digital infrastructure, tourism, housing, renewable energy, manufacturing, and agricultural value chains.

A Greener Future for Senegal

This €75 million green loan reflects IFC’s commitment to aligning its investments with global sustainability goals. By prioritizing low-carbon cement production and housing development, the partnership with Sococim not only addresses Senegal’s urbanization challenges but also sets a benchmark for sustainable industrial practices in the region.

For more information on IFC’s initiatives and partnerships in Senegal, visit the IFC website.