*Manufacturing Africa explains the strategic partnership agreement and collaboration is designed to support Nigerian manufacturers in accessing the needed capita to grow, create jobs and drive long-term economic growth

Isola Moses | 绿帽献妻

Manufacturing Africa (MA), one of the UK鈥檚 flagship economic development programmes for Africa, Tuesday, April 29, 2025, signed a strategic partnership agreement with London-based investment firm TLG Capital.

The objective of the partnership agreement is to strengthen and improve the eligibility of Nigerian manufacturing companies to raise capital through TLG鈥檚 Africa Growth Impact Fund II (AGIF II).

In a significant milestone, TLG Capital also confirmed the first close of the TLG AGIF II fund, raising $75 million towards its $200 million target.

Ndidiamaka Eze, Senior Press & Public Affairs Officer/Communications Lead at FCDO and British Deputy High Commission, in Lagos, in a statement Tuesday explained the fund is anchored by the World Bank鈥檚 International Finance Corporation (IFC) and backed by a coalition of forward-looking investors: Swedfund, Norfund, and Bpifrance.

The statement also noted that through this partnership, the UK-funded Manufacturing Africa programme would fast-track investment by supporting Africa Growth Impact Fund II with due diligence, corporate finance, ESG compliance, gender inclusion, supply chain and manufacturing operations support to eligible manufacturing companies targeted for investment by the fund.

It further stated that in a challenging economic climate, the collaboration is designed to support Nigerian manufacturers in accessing the capital they need to grow, create jobs, and drive long-term economic growth.

It is equally disclosed that the first Nigerian company enlisted for the UK Manufacturing Africa鈥檚 support to raise $7.5 million debt finance under this arrangement is Terra Aqua, an aluminium recycler based in Ogun State, South-West Nigeria.

TLG Capital has expressed interest in investing this whole amount in the company subject to meeting environmental, social and governance (ESG) and other operational performance indicators that Manufacturing Africa will guide the company through.

The statement further noted: “This single deal has the potential to create 200 direct jobs and 752 indirect jobs utilising a recycling process that requires 95% less energy than producing primary aluminium.

“Since 2020, Manufacturing Africa has supported 41 deals that are seeking to raise over $1 billion of foreign direct investment and create 38,000 direct jobs across Nigeria.”

Across Africa as a whole, the programme has raised almost $2.4bn and created 102,000 new jobs. With the financial close of 13 of these deals, the programme has directly facilitated the inflow of over $150 million of foreign direct investment into Nigeria, the statement said.

Speaking on the latest partnership, Mr. Jonny Baxter, UK Deputy High Commissioner in Lagos, stated: 鈥淎 strong manufacturing sector is key to driving economic growth and industrialisation in Nigeria and across Africa.

“By supporting TLG Capital, we鈥檙e fostering greater capital flows into Nigeria, which in turn supports job creation, generates wealth and secures a prosperous future.

“TLG Capital is one of the key partners we are working with to improve foreign direct investments that support manufacturing in Nigeria, which will have a lasting positive impact on both our economies鈥�

In his remarks at the event also, Thomas Pascoe, Team Leader on Manufacturing Africa programme, said: 鈥淭his landmark investment emphasises the scale of the development opportunity in manufacturing across Africa.

“Manufacturing Africa has already helped create 102,000 jobs through the $2.4bn of FDI we have supported, and we look forward to working closely with TLG Capital to support investments by the AGID II fund.鈥�

Isha Doshi, Co-Founder of TLG Capital, said: 鈥淥ne in four SME loans in Africa is under stress, and yet, the entrepreneurial spirit is unshaken.

“AGIF II is about capital that understands context鈥攆inancing that鈥檚 flexible, strategic, and backed by advisory horsepower from Manufacturing Africa.

“TLG AGIF II brings together both capital and capacity building.鈥�

Manufacturing Africa is a UK government-funded programme that aims to attract 拢1.2 billion of Foreign Direct Investment (FDI) into African manufacturing and create 90,000 jobs before 2027.

The programme also provides manufacturing companies and investors with fully funded transaction advisory services to fast-track investment and delivers technical assistance to help transform sub-sectors or unblock challenges in the enabling environment.

TLG Capital is also described as a leading alternative asset management firm specialising in African markets.

The firm has completed 41 investments and 30 exits in 20 African countries since inception.

The Africa Growth Impact Fund II (AGIF II) is a 7-year, closed-ended fund that builds on the existing strategy of Africa Growth Impact Fund I.

TLG, along with its investment partners, has pioneered an innovative investment program to invest in African SMEs while providing capital relief to African banks. TLG partners with African banks to identify SME clients who the bank struggles to serve, and AGIF II structures tailored financing solutions for these SMEs that refinance the bank鈥檚 loan.

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