Global fund backs waste-to-energy plant in Sierra Leone

From the newsletter

Climate Fund Managers (CFM) is investing $3.1 million of EU-backed funding in a 30 MW waste-to-energy (WTE) project in Freetown, Sierra Leone. The facility will convert 365,000 tonnes of waste into 236.5 GWh of electricity annually, cutting 94,000 tonnes of carbon emissions while tackling waste and energy shortages. 

• Though blended finance has been used in WTE and circular economy projects in Africa, it remains relatively uncommon. The Sierra Leone project stands out because it leverages EU-backed blended finance through CFM, a structured investment approach that is not typical for WTE projects in Africa. 

• Waste-to-energy offers a powerful solution for Africa’s waste and energy crises. Turning waste into electricity reduces landfill pressure, cuts emissions and provides renewable power. As cities grow, this model could enhance grid stability and support sustainable urban development across the continent.

More details

• CFM, a Netherlands-based investment manager, uses blended finance to attract capital for climate resilience projects in emerging markets. For the Sierra Leone project, CFM partnered with UK-based Infinitum Energy Group, funded through CFM's Climate Investor Two Fund (CI2).

• The 30MW Freetown plant will supply electricity to 3.3 million people through a 25-year Power Purchase Agreement  with the Electricity Distribution and Supply Authority (EDSA). It will create 250 direct jobs and support 1,500 roles in the waste sector, boosting the circular economy.

• Beyond energy access, the plant will reduce unregulated dumpsites, lower flood risks, and improve public health. It aligns with Sierra Leone’s Nationally Determined Contributions (NDCs) by combining waste management with renewable energy production critical for a country where only 22% of the population has reliable electricity.

• CFM and Infinitum will conduct waste studies, secure permits, and initiate early-stage works to fast-track financial close. The CI2 fund could cover up to 75% of construction equity. A gender action plan and community program will ensure inclusive growth, positioning the project as a model of sustainable development.

• Africa’s waste-to-energy potential remains vast but largely underutilized. Studies suggest that by 2060, Sub-Saharan African countries could generate between 20 and 58 million MWh of electricity annually from waste, enough to provide each African with an additional 100 to 230 kWh of electricity. Yet, despite this potential, only a handful of projects have materialized, with progress varying widely across regions.

• Some countries have already taken decisive steps. In Ethiopia, the Reppie Waste-to-Energy facility in Addis Ababa — Africa’s first such plant — processes 80% of the city’s municipal waste to generate 25 MW of electricity, reducing landfill dependence and improving urban air quality. Kenya is also advancing in this space: the $6 billion Kakamega Waste-to-Energy Plant is under development to convert local waste into renewable power, while Nairobi County is planning a 45 MW facility at the Dandora dumpsite, one of the largest landfills in the world. 

• Momentum is building in West Africa as well. In Ghana, construction began in 2022 on a 400-kilowatt Hybrid-PV-Biogas-Pyrolysis-Plant, set to convert 12 tonnes of waste daily into bio-fertilizer and energy. Expected to be completed by 2026, the plant is the first of its kind in the region and could serve as a template for future projects. Meanwhile, Nigeria is experimenting with small-scale waste-to-power initiatives and exploring larger facilities in Lagos and Abuja. 

• The trend extends to North Africa, where countries are embedding waste-to-energy into broader circular economy strategies. Morocco has launched feasibility studies to assess how waste-to-energy can complement its expanding solar and wind infrastructure, while Tunisia has piloted biogas production from organic waste. 

• However, key barriers persist across the continent. High upfront costs, policy uncertainty, and the difficulty of securing long-term PPAs often prevent projects from reaching commercial scale. This makes Sierra Leone’s approach particularly noteworthy and if successful, it could become a catalyst for attracting more investors and development funds to similar ventures across Africa.

Our take

• While waste-to-energy is transformative, it’s only one piece of the puzzle. Africa’s true circular economy potential lies in waste reduction, advanced recycling, and local green innovation. The continent must think bigger to build lasting sustainability.

• The Freetown project shows waste-to-energy power to tackle multiple crises. By turning waste into electricity, Sierra Leone highlights how circular economy models can drive environmental, social, and economic change. More African nations should follow suit.

•  Waste-to-energy projects need more than technical innovation — they need political will. Governments must provide stable policies, clear regulations, and public support to de-risk investments. Without this, even the most promising initiatives may never scale.