A United Kingdom economic development programme for Africa, Manufacturing Africa (MA), has penned a strategic partnership agreement with London-based investment firm, TLG Capital, to revive Nigeria’s manufacturing sector by helping manufacturing companies raise capital via TLG’s Africa Growth Impact Fund II (AGIF II).
The fund is anchored by the World Bank’s International Finance Corporation (IFC) was created to ensure Nigeria’s fiscal infrastructure: Swedfund, Norfund, and Bpifrance.
With this collaboration, the UK-funded Manufacturing Africa programme will guarantee crucial assistance like due diligence, corporate finance, ESG compliance, gender inclusion, supply chain and production operations support to qualified manufacturing companies selected for investment by the fund.
Amid the challenges of our current economic climate, the partnership will definitely go a long way towards helping Nigerian manufacturers to access the capital required to grow, create employment, and guarantee long-term economic growth.
An Aluminium recycler located in Ogun State, Terra Aqua, is the first Nigerian company enlisted for the UK Manufacturing Africa’s support to raise $7.5 million in debt finance. TLG Capital plans to invest the entire amount in the company as long as Terra Aqua meets environmental, social, governance, and other operational performance indicators that Manufacturing Africa will break down to those in charge.
This deal alone can possibly guarantee 200 and 752 direct and indirect employment opportunities, respectively, via a recycling process that will need 95 per cent less energy than producing primary aluminium.
For 5 years now, Manufacturing Africa has backed 41 deals that aim to raise more than $1 billion of foreign direct investment and create 38,000 direct jobs for unemployed Nigerians. And on the continent, the programme has raised close to $2.4 billion and created 102,000 new jobs thus far.
Having his say on the recent collaboration, the UK Deputy High Commissioner in Lagos, Mr. Jonny Baxter, revealed that a vibrant manufacturing sector is vital to aiding economic growth across Nigeria and Africa.
He firmly believes that partnering with TLG Capital will boost capital flows into Nigeria, which will, in turn, guarantee job creation, which will then lead to wealth generation across Nigeria and usher in a prosperous future for the country.
“A strong manufacturing sector is key to driving economic growth and industrialisation in Nigeria and across Africa. By supporting TLG Capital, we’re fostering greater capital flows into Nigeria, which in turn supports job creation, generates wealth and secures a prosperous future. TLG Capital is one of the key partners we are working with to improve foreign direct investments that support manufacturing in Nigeria, which will have a lasting positive impact on both our economies,” he said.
Manufacturing Africa programme Team Leader Thomas Pascoe also said, “This landmark investment emphasises the scale of the development opportunity in manufacturing across Africa. Manufacturing Africa has already helped create 102,000 jobs through the $2.4 billion of FDI we have supported, and we look forward to working closely with TLG Capital to support investments by the AGID II fund.”
Co-Founder of TLG Capital, Isha Doshi, added, “Today, one in four SME loans in Africa is under stress, and yet, the entrepreneurial spirit is unshaken. AGIF II is about capital that understands context—financing that’s flexible, strategic, and backed by advisory horsepower from Manufacturing Africa. TLG AGIF II brings together both capital and capacity building.”
