IFC Accelerating Circular Economy Finance in Emerging Markets

Enriched UN / Multilateral · Found: 2026-03-11 12:26

IFC invested $1.9B+ and mobilized $500M in circular economy projects since 2015. Covers full circularity lifecycle. $30M loan for plastic recycling facility in South Africa. Circularity Plus initiative connects global players.

Source: https://ifc.org/en/what-we-do/sector-expertise/climate-business/mobilizing-climate-finance-for-emerging-markets/accelerating-circular-economy-finance-in-emerging-markets

Funding Details

Funder

International Finance Corporation (IFC)

Funding Goal

Accelerate circular economy investment in emerging markets by financing private sector companies integrating circular practices across the full circularity lifecycle — from design and production to reuse and value recovery — while mobilizing additional capital and setting global standards.

Funding Amount

No fixed grant amounts. IFC provides loans and equity investments to private sector clients; individual deals have ranged from tens of millions (e.g., $30M for a plastic recycling facility in South Africa). Total portfolio: $1.9B+ committed, $480M+ mobilized since 2015.

How to Apply

Submit a project financing request via IFC's standard application portal: https://www.ifc.org/en/what-we-do/products-and-services/how-to-apply-for-financing. IFC's team reviews project viability, development impact, and alignment with investment criteria on a rolling basis.

Target Region

Global emerging markets — Africa, South Asia, Southeast Asia, Latin America, Eastern Europe, Middle East and Central Asia

Contact

General Inquiry: https://disclosures.ifc.org/inquiries | Contact Directory: https://www.ifc.org/en/contact-directory

Last Checked

2026-03-11 16:18

Application Checklist

Eligibility

• Applicant must be a private sector (for-profit) company — IFC does not directly finance non-profit organizations
• Project must be located in an emerging market country (IFC operates in 100+ developing countries)
• Project must demonstrate commercial viability and development impact in the circular economy space

Project Scope

• Circular economy scope: project must address design, production, reuse, or material recovery (per Harmonized Circular Economy Finance Guidelines)
• Eligible sectors include manufacturing, agribusiness, infrastructure, and consumer goods integrating circular practices

Required Documents

• Submit financing application via IFC's official project application portal with full project documentation

Constraints

• Applicant must comply with IFC Environmental and Social Performance Standards
• IFC has minimum scale thresholds for direct investment; very small projects may need to access IFC financing indirectly through financial intermediaries

Summary

IFC's Circular Economy Finance program channels investment and advisory services to private sector companies in emerging markets that are advancing circular economy solutions. Since 2015, IFC has committed over $1.9 billion in its own account financing and mobilized nearly $500 million across 67 investments in 35 countries. Target sectors include manufacturing, agribusiness, infrastructure, and consumer goods companies that integrate recycled materials, reusable packaging, or circular supply chain practices. The program covers the full circularity lifecycle — design, production, circular use, and material recovery — and explicitly includes plastic recycling as a key investment area. A notable example from the program's portfolio is a $30 million loan for a plastic recycling facility in South Africa. IFC also co-developed the Harmonized Circular Economy Finance Guidelines and operates the Circularity Plus initiative to connect global players and mobilize blended finance for plastic transition. IFC provides debt (loans) and equity to private sector clients, complemented by advisory services on product redesign, waste reduction, and circular supply chain development. The program is global in scope with a specific focus on emerging markets across Africa, South Asia, Southeast Asia, Latin America, and Eastern Europe. IFC works to drive systemic change by aligning stakeholder activities, boosting demand for recycled materials, and strengthening recycling and waste management capacities. This is not a grant program — IFC structures financial products (loans, equity, blended finance) for commercially viable private sector entities. Non-profit organizations may engage IFC as partners or advisors, but direct financing is targeted at for-profit businesses with investable projects at scale.

Historical Context

Program active since at least 2015. As of September 2025, IFC has made 67 circular economy investments across 35 countries. The Harmonized Circular Economy Finance Guidelines were published in 2025. A regional initiative for industrial plastic circularity in Latin America and the Caribbean was launched in March 2026. IFC also recently invested in plastic recycling partnerships in West Africa (Mohinani Group, February 2025) and Brazil.

Why it was added

IFC's circular economy investment program with specific plastic recycling investments in Africa

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