Panama has been one of the fastest growing economies in Latin America in recent years, averaging 9.5% growth since 2006. Despite the high levels of economic growth, the country has one of the highest levels of economic inequality in the world, with over 30% of the population of 3 million living in poverty.

Located outside of Panama City, Aluminio de Panama is the country’s leading aluminium manufacturer. It makes a range of aluminium products for architectural and structural use by the construction industry.

The process of manufacturing aluminium can generate significant and potentially environmentally harmful wastewater. Aluminio de Panama complies with Panamanian legislation for treatment of wastewater. The company also actively cooperates with ANAM, the Panamanian environmental national authority to ensure its operations have minimal environmental impact. All effluent discharged by Aluminio de Panama complies with both local standards and International Finance Corporation (IFC) guidelines.

Over the course of CDC’s fund manager Aureos’ investment, Aluminio de Panama has implemented a number of improvements to its facilities in order to reach compliance with international standards. Using money invested by Aureos, the company improved its production process, replacing hexavalent chromium with less environmentally harmful chemicals.

Aureos is also assisting Aluminio de Panama to obtain additional financing from the International Finance Corporation in order to further improve its water treatment process and achieve international certification.

Improved wastewater treatment will allow for the recycling of sludge, a solid residue generated in the production process. Currently, sludge is disposed of, but if properly treated, other products can be obtained and reused from its recycling.