IFC Deepens Partnership with Sococim to Boost Low-Carbon Cement Production in Senegal

Dakar, Senegal, December 23, 2024 – To boost low-carbon cement production, job creation and support Senegal’s construction and housing sectors, IFC today announced a €75 million green loan for Sococim, the country’s largest integrated cement manufacturer.

IFC’s financing will support Sococim’s strategy to modernize its operations, including by introducing more efficient and alternative fuel technology, such as solar and refuse-derived fuels. These improvements are expected to  help the company reduce greenhouse gas emissions by 312,000 tons of CO2 equivalent annually by 2030. The project is expected to add about 4,700 additional jobs through indirect and induced effects along the value chain.

Cement is crucial for affordable housing and infrastructure. However, its production is carbon-intensive, with clinker production responsible for 90 percent of cement's CO2 emissions. Modernizing older plants is essential to reduce the industry's carbon footprint and address the housing gap in rapidly urbanizing countries like Senegal.

Elhadji Mamadou Seck, CEO of Sococim Industries, said, “This investment will help us accelerate the implementation of our 2019 Climate Plan. By modernizing our kiln lines, we are engaged in full commitment to decarbonization, in order to reduce our environmental footprint and improve our energy efficiency. Furthermore, IFC’ investment is a strong proof that Sococim will be offering a green, clean and high added value cement to its customers.”

Makhtar Diop, IFC Managing Director, said, "IFC's investment in Sococim underscores our commitment to sustainable development in Senegal. By supporting low-carbon cement production, we are not only helping to reduce 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."

IFC’s partnership with Sococim is part of a broad initiative to support the housing value chain in Senegal, with projects such as Kajom Capital and through the EDGE certification for local real estate developers.  IFC previously supported Sococim with a financing package in February 2023.

Last fiscal year ending June 30, 2024, IFC committed about $615 million in investments and mobilizations in Senegal, a record for IFC in the country. IFC’s current portfolio in Senegal is supporting vaccine production, digital infrastructure, tourism, housing, renewable energy, manufacturing, and agricultural value chains.