Manufacturing Africa (MA), one of the United Kingdom emblematic economic development programs for Africa, signed on Tuesday a strategic association agreement with the investment firm with headquarters in London TLG Capital to strengthen and improve the eligibility of Nigerian manufacturing companies to increase capital through the Growth of Africa of Africa of TLG II (AGIF II).
In a significant milestone, TLG Capital also confirmed the first closure of the TLG Agif II fund, raising $ 75 million for its aim of $ 200 million.
The fund is anchored by the International Finance Corporation (IFC) of the World Bank and supported by a coalition of investors with a vision of the future, including Swedfund, Norfund and Bpifrance.
Through this association, the Africa manufacturing program financed by the United Kingdom will accelerate the investment by supporting the growth fund of Africa II with due diligence, corporate finances, compliance with ESG, gender inclusion, supply chain and support of manufacturing operations for eligible manufacturing companies destined for investment by the fund.
This collaboration is designed to support Nigerian manufacturers to access the capital they need to grow, create jobs and boost long -term economic growth.
In view of this, the first Nigerian company enlisted for the support of the United Kingdom's manufacturing in Africa to raise $ 7.5 million in debt financing under this agreement is Terra Aqua, an aluminum recycler based in the state of Ogun.
TLG Capital has expressed interest in investing this total amount in the company, subject to the Environmental, Social and Government (ESG) and other indicators of operational performance, that the manufacture of Africa will guide the company.
This only agreement has the potential to create 200 direct jobs and 752 indirect jobs, using a recycling process that requires 95% less energy than producing primary aluminum.
Since 2020, the manufacture of Africa has supported 41 agreements that seek to raise more than $ 1 billion in direct foreign investment and create 38,000 direct jobs in Nigeria.
In all Africa as a whole, the program has raised almost $ 2.4 billion and created 102,000 new jobs. With the financial closure of 13 of these agreements, the program has directly facilitated the entry of more than $ 150 million in foreign direct investment in Nigeria.
Speaking about this last association, the attached high commissioner of the United Kingdom in Lagos, Jonny Baxter, said: “A strong manufacturing sector is key to promoting economic growth and industrialization in Nigeria and throughout Africa.
“By supporting the Capital FTA, we are promoting greater capital flows in Nigeria, which in turn supports the creation of employment, generates wealth and ensures a prosperous future. TLG Capital is one of the key partners with whom we are working to improve foreign direct investments that support manufacturing in Nigeria, which will have a positive lasting impact on both economies.”
In addition, the leader of the African manufacturing program team, Thomas Pascoe, said: “This historical investment emphasizes the scale of development opportunity in manufacturing in Africa. The manufacture of Africa has already helped create 102,000 jobs through the $ 2.4 billion IED that we have supported, and we hope to work closely with TLG Capital to support the investments of the Agif II fund.”
The co -founder of TLG Capital, Isha Doshi, said: “Today, one in four SME loans in Africa is under stress and, nevertheless, the entrepreneurial spirit remains unwavering. Agif II It is a capital that includes the context, the financing that is flexible, strategic and backed by horses advisory to the manufacture of Africa. African.
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