By Dare Akogun
In a major step towards revitalising Nigeria’s manufacturing landscape, the UK’s flagship economic development programme, Manufacturing Africa (MA), has entered a strategic partnership with London-based investment firm TLG Capital to enhance the capital-raising capacity of Nigerian manufacturing firms through the Africa Growth Impact Fund II (AGIF II).
This partnership comes as TLG Capital successfully announced the first close of the AGIF II fund with a raise of $75 million towards its $200 million target.
The fund is anchored by the World Bank’s International Finance Corporation (IFC) and backed by development finance institutions such as Swedfund (Sweden), Norfund (Norway), and Bpifrance (France).
The UK-funded MA programme will support the AGIF II fund by providing technical assistance to eligible Nigerian manufacturers in areas such as due diligence, corporate finance, environmental and social governance (ESG) compliance, gender inclusion, and operational improvements.
This support aims to fast-track investments, particularly in a tough economic environment.
One of the immediate beneficiaries of this new collaboration is Terra Aqua, an aluminium recycling company based in Ogun State, which is seeking $7.5 million in debt financing.
TLG Capital has indicated its readiness to invest the full amount, subject to the company meeting ESG and operational benchmarks with technical support from Manufacturing Africa.
If successful, the investment is expected to generate 200 direct and 752 indirect jobs, while promoting energy efficiency in the aluminium sector—recycling requires 95% less energy compared to producing primary aluminium.
Speaking on the development, the UK Deputy High Commissioner in Lagos, Mr. Jonny Baxter, said the partnership will facilitate much-needed capital flow into Nigeria’s industrial sector.
“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,” Baxter said.
Since its inception in 2020, the Manufacturing Africa programme has supported 41 deals in Nigeria, with a combined capital raise target of over $1 billion and a potential to create 38,000 direct jobs. So far, 13 of these deals have reached financial close, resulting in $150 million in foreign direct investment into the country.
Across Africa, the programme has mobilised nearly $2.4 billion and facilitated the creation of 102,000 new jobs.
Thomas Pascoe, Team Leader of the Manufacturing Africa programme, emphasised the broader regional impact of the initiative.
“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,” he noted.
Isha Doshi, Co-Founder of TLG Capital, highlighted the unique structure of AGIF II and its relevance to the African context.
“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,” Doshi said.
With this collaboration, stakeholders say Nigerian manufacturers are better positioned to access transformative capital, create sustainable jobs, and contribute to inclusive economic growth.
