The UK government’s Manufacturing Africa (MA) programme has sealed a strategic partnership with London-based investment firm TLG Capital to help more Nigerian manufacturers raise capital and scale up operations.
At the heart of this collaboration is the Africa Growth Impact Fund II (AGIF II), a $200 million fund managed by TLG Capital.
The firm just announced the fund’s first close at $75 million, anchored by the International Finance Corporation (IFC), the private sector arm of the World Bank, alongside other global backers including Swedfund, Norfund, and Bpifrance.
Support for Nigerian companies
Through the partnership, the UK-funded Manufacturing Africa programme will help Nigerian manufacturers become investment-ready.
- The support will include due diligence, ESG compliance, gender inclusion, corporate finance advisory, and operational guidance—all aimed at ensuring eligible companies can tap into the AGIF II fund.
- One of the first Nigerian companies lined up for support is Terra Aqua, an aluminium recycling firm based in Ogun State. The company is looking to raise $7.5 million in debt financing through AGIF II—a sum TLG Capital has signalled it’s ready to invest, pending ESG and performance benchmarks.
- If successful, the deal could create 200 direct and over 750 indirect jobs, thanks to a recycling process that uses 95% less energy than primary aluminium production.
Boosting capital flows into Nigeria
Commenting on the development, UK Deputy High Commissioner in Lagos, 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.”
Team Leader of the Manufacturing Africa programme, 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 AGIF II fund.”
TLG Capital’s Co-Founder, Isha Doshi, also highlighted the fund’s value in today’s lending environment:
“One in four SME loans in Africa is under stress, yet the entrepreneurial spirit remains unshaken. AGIF II is about capital that understands context—flexible, strategic financing, backed by Manufacturing Africa’s advisory horsepower.”
More insights
This move comes at a time when access to capital is tight, and the UK says the partnership is designed to unlock growth and job creation in Nigeria’s real economy.
Since its launch in 2020, the Manufacturing Africa programme has supported 41 Nigerian manufacturing deals targeting over $1 billion in foreign direct investment (FDI) and 38,000 direct jobs.
Thirteen of these deals have already reached financial close, unlocking over $150 million in FDI into Nigeria.
Across the continent, the programme has facilitated nearly $2.4 billion in investments and supported the creation of over 100,000 jobs.
