The UK’s Manufacturing Africa programme has formed a strategic partnership with investment firm TLG Capital to enhance funding opportunities for Nigeria’s manufacturing sector.
This collaboration aims to strengthen Nigerian businesses’ eligibility for financing through Africa Growth Impact Fund II (AGIF II), which has raised $75 million towards its $200 million target.
Supported by the World Bank’s International Finance Corporation (IFC), Swedfund, Norfund, and Bpifrance, the fund seeks to channel capital into promising manufacturing businesses across Nigeria.
Manufacturing Africa will assist companies with due diligence, corporate finance, ESG compliance, gender inclusion, and operational improvements, ensuring they meet investment criteria.
One of the first beneficiaries of this initiative is Terra Aqua, an aluminium recycling company in Ogun State. Terra Aqua is set to receive $7.5 million in debt financing from TLG Capital, contingent on meeting environmental, social, and governance (ESG) benchmarks.
If successful, this deal could create 200 direct jobs and 752 indirect jobs, while utilizing a recycling process that consumes 95% less energy than producing primary aluminium.
Since its launch in 2020, Manufacturing Africa has supported 41 investment deals in Nigeria, aiming to secure over $1 billion in foreign direct investment and create 38,000 direct jobs. Across Africa, the programme has facilitated nearly $2.4 billion in investment, leading to 102,000 new jobs.
UK Deputy High Commissioner Jonny Baxter emphasized the importance of a robust manufacturing sector in driving Nigeria’s economic growth.
Manufacturing Africa’s Team Leader, Thomas Pascoe, highlighted the development potential in African manufacturing, while TLG Capital Co-Founder, Isha Doshi, underscored AGIF II’s goal of providing flexible, strategic financing tailored to the African business landscape.
This initiative is set to accelerate industrial growth, create jobs, and position Nigerian manufacturers as viable investment opportunities.
