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UK supports three Nigerian companies with $17 million for clean energy

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The British-funded Manufacturing Africa program has achieved a significant win for Nigeria’s clean energy sector.

Three companies in the program’s portfolio – Arnergy, Koolboks and BURN Manufacturing – have collectively secured $17 million in foreign direct investment (FDI), boosting Nigeria’s efforts to expand access to sustainable energy solutions.

A statement from the British High Commission in Abuja on Tuesday said these investments will power more Nigerians, reduce carbon emissions, lead to the creation of 1,100 jobs and support thousands of livelihoods.

BURN Manufacturing, a leader in clean cooking appliances, has secured $12 million in carbon investment from Key Carbon Ltd. Their new local assembly facility in Northern Nigeria will strengthen distribution efforts of electric cookers and biomass stoves in East and Central Africa.

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

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

The UK Deputy High Commissioner in Lagos, Jonny Baxter, said: “The UK Government supports the ambition of the Federal Government’s Renewed Hope agenda: to drive private sector-led economic growth in Nigeria. We fund the Manufacturing Africa program to provide free advisory services to companies raising financing to expand their capabilities and create new jobs in Nigeria. It’s great to see these companies achieving their goals with UK support.”

Lolade Arounde, Business Communications Manager at Koolboks, said: “The financial advice from Manufacturing Africa in raising our ‘Series A’ was very useful and has helped us secure funds that will assist with our expansion plans.”

The consulting services #ManufacturingAfrica provided to these companies include financial analysis, modeling, commercial diligence analysis and strategic business planning.

To date, Manufacturing Africa has supported 31 Nigerian companies on their journey to attract investment, in sectors such as agro-processing, industrial parks, pharmaceuticals, vehicle manufacturing, e-mobility and renewable energy.

The program has helped attract $85 million to Nigeria’s manufacturing sector since 2020.