UK’s Manufacturing Africa, TLG Capital Partner to Boost Investment in Nigeria

Emma Okonji

Manufacturing Africa (MA), one of the United Kingdom (UK’s) flagship economic development programmes for Africa, has signed a strategic partnership agreement with London-based investment firm TLG Capital to strengthen and improve the eligibility of Nigerian manufacturing companies to raise capital through TLG’s Africa Growth Impact Fund II (AGIF II).

In a significant milestone, TLG Capital also confirmed the first close of the TLG AGIF II fund, raising $75 million towards its $200 million target.

The fund is anchored by the World Bank’s International Finance Corporation (IFC) and backed by a coalition of forward-looking investors: Swedfund, Norfund, and Bpifrance.

In view of this, the first Nigerian company enlisted for the UK Manufacturing Africa’s support to raise $7.5 million debt finance under the arrangement is Terra Aqua; an aluminium recycler based in Ogun State.

The deal has the potential to create 200 direct jobs and 752 indirect jobs utilising a recycling process that requires 95 per cent less energy than producing primary aluminium.

Speaking about the initiative, the UK Deputy High Commissioner in Lagos, Mr. Jonny Baxter, said: “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.”

Manufacturing Africa programme Team Leader Thomas Pascoe 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 $2.4bn 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 said: “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.”