UK’s Manufacturing Africa & TLG Capital Launch $200M Fund to Boost Nigerian Manufacturing Sector

In a move to inject fresh capital into Nigeria’s manufacturing sector, the UK government’s Manufacturing Africa program has partnered with London-based investment firm TLG Capital. The collaboration centers on the Africa Growth Impact Fund II (AGIF II), a $200 million fund that has just secured its first close at $75 million. This initial funding round was anchored by the International Finance Corporation (IFC) and supported by global investors like Swedfund, Norfund, and Bpifrance. The goal is to support manufacturers in Nigeria by making them investment-ready and linking them to long-term financing.

The Manufacturing Africa initiative will provide advisory services to help Nigerian businesses meet the requirements needed to access the fund. This includes support in due diligence, environmental and social governance (ESG), gender inclusion, and operational best practices. One of the first beneficiaries is Terra Aqua, an aluminium recycling company in Ogun State seeking $7.5 million in debt financing. If approved, the project could generate over 950 jobs while promoting cleaner manufacturing through energy-efficient processes.

Speaking on the development, UK Deputy High Commissioner Jonny Baxter emphasized the broader goal of the partnership: to fuel economic growth and industrialisation across Africa by boosting capital flows into critical sectors. Thomas Pascoe, who leads the Manufacturing Africa programme, echoed this sentiment, highlighting the fund as a landmark step in unlocking the continent’s manufacturing potential. TLG Capital’s Isha Doshi also underlined the fund’s unique flexibility and relevance, especially in an environment where traditional lending options for SMEs are increasingly strained.

Launched in 2020, the Manufacturing Africa program has already helped secure over $150 million in FDI through 13 closed deals in Nigeria alone. Across the continent, the initiative has backed nearly $2.4 billion in investments, supporting over 100,000 jobs. By partnering with TLG Capital, the UK aims to further scale its impact, helping Nigerian manufacturers thrive despite global economic headwinds.

Source: Nairametrics