Clean Energy: 3 Nigerian companies get $17m UK investment boost

Three Nigerian companies have received a $17 million investment boost from the UK to support the clean energy sector.

This was disclosed by Ndidiamaka Eze, Senior Press and Public Affairs Officer/Communications Lead for Prosperity and Economic Development, in Abuja this week.

Eze confirmed that the support was provided under the UK-funded Manufacturing Africa Programme.

The companies benefiting from this investment are Arnergy, Koolboks, and BURN Manufacturing. This funding aims to enhance Nigeria’s efforts in expanding 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 are sustainability trailblazers,” Eze stated.

The News Agency of Nigeria (NAN) reported that BURN Manufacturing, a leader in clean cook-stove innovation, secured $12 million in carbon investment from Key Carbon Ltd.

Their new local assembly facility in Dawakin Kudu, Kano State, will boost the distribution of electric cook stoves and biomass stoves across East and Central Africa.

Arnergy, a leading renewable energy company in Nigeria specializing in solar micro-grid and rooftop solutions, recently received $3 million in bridge-financing from a Shell-backed impact investment company, adding to their already raised $7.5 million in Series B fundraising.

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

At the ceremony, British Deputy High Commissioner in Lagos, Jonny Baxter, emphasized the UK government’s support for Nigeria’s Renewed Hope Agenda under President Bola Tinubu. He noted that the fund would bolster Nigeria’s commitments toward private-sector-led economic growth.

“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 realize their goals with UK support,” Baxter said.

Lolade Alonge, Business Communications Manager at Koolboks, highlighted the significance of the Manufacturing Africa Programme’s financial advisory support. “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,” Alonge stated.

Since 2020, the Manufacturing Africa Programme has supported 31 Nigerian companies in various sectors, including agro-processing, industrial parks, pharmaceuticals, vehicle manufacturing, e-mobility, and renewable energy, attracting $85 million into Nigeria’s manufacturing sector.