A new partnership between the UK government’s Manufacturing Africa programme and London-based investment firm TLG Capital aims to significantly increase investment in Nigeria’s manufacturing sector. The collaboration is designed to improve the ability of Nigerian manufacturing companies to secure funding through TLG’s Africa Growth Impact Fund II (AGIF II).
In a parallel announcement, TLG Capital confirmed the initial closing of the AGIF II fund, having raised $75 million towards its $200 million target. The fund has secured backing from the World Bank’s International Finance Corporation (IFC), alongside other investors including Swedfund, Norfund, and Bpifrance.
Under the terms of the partnership, the UK-funded Manufacturing Africa programme will provide crucial support to the Africa Growth Impact Fund II. This includes assisting with due diligence processes, corporate finance, environmental, social, and governance (ESG) compliance, gender inclusion initiatives, supply chain optimisation, and manufacturing operations support for Nigerian companies targeted for investment. The collaboration comes at a time of economic challenges and is specifically intended to help Nigerian manufacturers access the necessary capital for expansion, job creation, and long-term economic growth.
The first Nigerian company slated to receive support under this arrangement is Terra Aqua, an aluminium recycling firm based in Ogun State. TLG Capital has expressed interest in investing $7.5 million in the company, contingent on meeting ESG and other operational performance indicators, which Manufacturing Africa will assist Terra Aqua in achieving. This single potential investment has the capacity to generate 200 direct and 752 indirect jobs through a recycling process that significantly reduces energy consumption compared to primary aluminium production.
Since its inception in 2020, Manufacturing Africa reports having supported 41 deals in Nigeria seeking over $1 billion in foreign direct investment and the creation of 38,000 direct jobs. Across the African continent, the programme claims to have facilitated nearly $2.4 billion in investment and supported the creation of 102,000 new jobs. To date, 13 of these deals have reached financial close, directly bringing over $150 million of foreign direct investment into Nigeria.
Speaking about the partnership, the UK Deputy High Commissioner in Lagos, Mr. Jonny Baxter, stated, “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 added, “This landmark investment emphasises the scale of the development opportunity in manufacturing across Africa… we look forward to working closely with TLG Capital to support investments by the AGID II fund.”
Co-Founder of TLG Capital, Isha Doshi, highlighted the current economic climate in Africa, noting the stress on SME loans, but also the resilience of entrepreneurship. She described the AGIF II fund as providing “capital that understands context—financing that’s flexible, strategic, and backed by advisory horsepower from Manufacturing Africa.”
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