UK’s Manufacturing Africa Partners TLG Capital to Boost Nigerian Manufacturing with New $200 Million Fund
The UK government’s Manufacturing Africa (MA) programme has formed a strategic partnership with London-based investment firm TLG Capital to support Nigerian manufacturers in raising capital and scaling operations.
Key Partnership Details
At the core of this collaboration is the Africa Growth Impact Fund II (AGIF II), a $200 million fund managed by TLG Capital. The firm recently announced the fund’s first close at $75 million, with backing from the International Finance Corporation (IFC), Swedfund, Norfund, and Bpifrance.
Support for Nigerian Manufacturers
Through this partnership, the UK-funded Manufacturing Africa programme will assist Nigerian manufacturers in becoming investment-ready. Support will include:
- Due diligence and ESG compliance guidance
- Corporate finance advisory services
- Operational support to meet investment criteria
One of the first beneficiaries is Terra Aqua, an Ogun State-based aluminium recycling company seeking $7.5 million in debt financing. If successful, this investment could create 200 direct jobs and over 750 indirect jobs, while promoting sustainable manufacturing through a process that uses 95% less energy than primary aluminium production.
Boosting Nigeria’s Manufacturing Sector
UK Deputy High Commissioner in Lagos, Jonny Baxter, commented:
“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 supports job creation and economic prosperity.”
Thomas Pascoe, Team Leader of the Manufacturing Africa programme, 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.”
Strategic Financing for African SMEs
TLG Capital’s Co-Founder, Isha Doshi, highlighted the fund’s unique value proposition:
“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.”
Programme Impact and Future Prospects
Since its 2020 launch, the Manufacturing Africa programme has:
- Supported 41 Nigerian manufacturing deals targeting over $1 billion in FDI
- Facilitated the creation of 38,000 direct jobs
- Seen 13 deals reach financial close, unlocking $150 million in FDI
Across Africa, the programme has facilitated nearly $2.4 billion in investments and supported over 100,000 jobs.
Full credit to the original publisher: Nairametrics