uMunthu Investment Company II, a Mauritius-based private equity fund, is set to acquire a 26% stake in Hinckley Ewaste Recycling Limited, one of Nigeria’s leading electronic waste recyclers.
The details of the deal were revealed in a notification submitted to the Federal Competition and Consumer Protection Commission (FCCPC).
The investment, which will be executed via a Share Subscription Agreement, involves the acquisition of 47.8 million preference shares in Hinckley, marking a significant capital injection into the company’s operations.
Driving growth in Nigeria’s e-waste industry
Founded with a mission to tackle the growing problem of electronic waste (e-waste) in Nigeria, Hinckley Ewaste Recycling specializes in collecting, dismantling, and reselling end-of-life electrical and electronic equipment.
- According to the FCCPC notice, the Lagos-based firm operates a recycling warehouse where items such as used phones and laptops are processed into components like batteries, printed circuit boards, and plastic casings, which are then sold to local and international recyclers.
- Clients include corporate entities that generate e-waste in their daily operations, as well as global metal and battery recycling companies.
- The deal is expected to strengthen Hinckley’s operations and boost its capacity for infrastructure upgrades and working capital support, enabling the company to expand its reach and efficiency in Nigeria’s underdeveloped e-waste market.
uMunthu’s pan-African SME agenda
uMunthu Investment Company II is a pan-African impact investment fund focused on providing capital to high-growth small and medium-sized enterprises (SMEs) across the continent.
The fund is managed by Goodwell Investments, which specializes in socially responsible investments.
In the deal notice, the parties noted that the proposed transaction aligns with uMunthu’s strategy to back businesses that offer both financial returns and measurable environmental or social impact.
“Hinckley presents a compelling growth opportunity within the high-potential e-waste management sector in Nigeria.
“The company’s experienced management team and business model align well with uMunthu’s investment philosophy,” it stated.
The investment is also expected to support sustainable development goals by contributing to environmental sustainability, job creation, and resource circularity in Nigeria.
What does this mean for Nigeria’s recycling industry
Nigeria currently faces a significant e-waste problem, being a major recipient of electronic waste, both locally generated and imported.
- According to data from the International Telecommunications Union (ITU), the country is the largest e-waste importing country in Africa, with a substantial flow of e-waste, including computers, entering through the Lagos port.
- This influx, coupled with inadequate disposal practices, poses serious environmental and health risks.
- With fresh funding from uMunthu, Hinckley could emerge as a major player in the sector, helping Nigeria move closer to an organized, environmentally responsible e-waste management system.
