The UK authorities’s Manufacturing Africa (MA) programme has sealed a strategic partnership with London-based funding agency TLG Capital to assist extra Nigerian producers elevate capital and scale up operations.
On the coronary heart of this collaboration is the Africa Progress Affect Fund II (AGIF II), a $200 million fund managed by TLG Capital.
The agency simply introduced the fund’s first shut at $75 million, anchored by the Worldwide Finance Company (IFC), the personal sector arm of the World Bank, alongside different world backers together with Swedfund, Norfund, and Bpifrance.
Help for Nigerian firms
Via the partnership, the UK-funded Manufacturing Africa programme will assist Nigerian producers turn into investment-ready.
- The help will embrace due diligence, ESG compliance, gender inclusion, company finance advisory, and operational steerage—all geared toward guaranteeing eligible firms can faucet into the AGIF II fund.
- One of many first Nigerian firms lined up for help is Terra Aqua, an aluminium recycling agency based mostly in Ogun State. The corporate is seeking to elevate $7.5 million in debt financing by way of AGIF II—a sum TLG Capital has signalled it’s prepared to take a position, pending ESG and efficiency benchmarks.
- If profitable, the deal might create 200 direct and over 750 oblique jobs, due to a recycling course of that makes use of 95% much less power than major aluminium manufacturing.
Boosting capital flows into Nigeria
Commenting on the event, UK Deputy Excessive Commissioner in Lagos, Jonny Baxter, mentioned:
“A powerful manufacturing sector is essential to driving financial development and industrialisation in Nigeria and throughout Africa.
“By supporting TLG Capital, we’re fostering higher capital flows into Nigeria, which in flip helps job creation, generates wealth and secures a affluent future.”
Workforce Chief of the Manufacturing Africa programme, Thomas Pascoe added:
“This landmark funding emphasises the dimensions of the event alternative in manufacturing throughout Africa. We sit up for working intently with TLG Capital to help investments by the AGIF II fund.”
TLG Capital’s Co-Founder, Isha Doshi, additionally highlighted the fund’s worth in at the moment’s lending surroundings:
“One in 4 SME loans in Africa is underneath stress, but the entrepreneurial spirit stays unshaken. AGIF II is about capital that understands context—versatile, strategic financing, backed by Manufacturing Africa’s advisory horsepower.”
Extra insights
This transfer comes at a time when entry to capital is tight, and the UK says the partnership is designed to unlock development and job creation in Nigeria’s actual financial system.
Since its launch in 2020, the Manufacturing Africa programme has supported 41 Nigerian manufacturing offers concentrating on over $1 billion in overseas direct funding (FDI) and 38,000 direct jobs.
13 of those offers have already reached monetary shut, unlocking over $150 million in FDI into Nigeria.
Throughout the continent, the programme has facilitated almost $2.4 billion in investments and supported the creation of over 100,000 jobs.
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