UK lifts Nigeria’s manufacturing sector with $17m

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By Our Reporter

The UK-funded Manufacturing Africa programme has scored a significant win for Nigeria’s clean energy sector. Three companies in the programme’s portfolio  – Arnergy, Koolboks and BURN Manufacturing – have collectively secured $17million in Foreign Direct Investment (FDI), boosting Nigeria’s efforts to expand access to renewable energy solutions.

These investments will provide energy for more Nigerians, reduce carbon emissions, lead to the creation of 1,100 jobs and support thousands of livelihoods. The three companies that are sustainability trailblazers are BURN Manufacturing, at the forefront of clean cookstove innovation which secured $12 million in carbon investment from Key Carbon Ltd. Their new local assembly facility in Northern Nigeria will bolster distribution efforts of electric cookstoves and biomass stoves across East and Central Africa.

Arnergy is another leading renewable energy company in Nigeria that specializes in designing and manufacturing technology-enabled solar micro-grid and rooftop solutions. With a recent $3 million bridge financing from a Shell-backed impact investment company, the company has already raised $7.5 million in their Series B fundraise.

The third is Koolboks which is revolutionizing access to refrigeration services, particularly for underserved communities and women entrepreneurs through their solar-powered cooling systems. Their pay-as-you-go technology and accessible business model has attracted a 1.5 million euro subsidy from Beyond the Grid Fund for Africa (BGFA), for launch and expansion in Uganda.

Speaking on the development, the British Deputy High Commissioner in Lagos, Jonny Baxter said: “The UK Government supports the ambition of the Federal Government’s Renewed Hope agenda to boost private-sector led economic growth in Nigeria. We’re funding the Manufacturing Africa programme to provide free advisory services to companies raising finance to expand their capabilities and create new jobs in Nigeria. It’s great to see these companies realise their goals with UK support.”

Jonny Baxter

 

Also, Business Communications Manager at Koolboks, Ms. Lolade Alonge, said: “Manufacturing Africa’s financial advisory support when raising our ‘Series A’ came in very handy and has helped us secure funds that will assist with our expansion plans.”

Lolade Alonge

 

The advisory services that #ManufacturingAfrica provided to these firms included financial analysis, modelling, commercial diligence analysis and strategic business planning. To date, Manufacturing  Africa has supported 31 Nigerian companies in their journey to raise investment, in sectors including agro-processing, industrial parks, pharmaceuticals, vehicle manufacturing, e-mobility and renewable energy. The programme has helped to attract $85 million into Nigeria’s manufacturing sector since 2020.

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