Although the amount was undisclosed, however, the impact- focused funding will enable the award-winning, Nigeria-based recycler to create a healthier environment, safer jobs, and improved livelihoods throughout its region of operations.

Goodwell and Alitheia invested in Hinckley through uMunthu II, a fund providing smart equity to early growth stage companies throughout Africa.

The investment will be used to construct a lithium-ion battery recycling facility and a lead acid battery recycling facility.

Both plants will be located in Nigeria’s Ogun State, with plans to collect and recycle up to 30,000 tonnes of e-waste per year and expand Hinckley’s export operations. uMunthu II’s investment marks Goodwell’s entry into the waste management sector, and the huge impact potential that comes with that industry.

A global problem with local solutions

Globally, the majority of collected e-waste isn’t yet disposed of responsibly ,and only 22.3% is recycled.

In sub-Saharan Africa, that number is even lower, with only an estimated 1% to 15% of generated e-waste being recycled.

West Africa generates 750,000 tonnes of e-waste annually, and that figure projected to exceed one million tonnes by 2030.

Nigeria accounts for 500,000 tonnes, making it the region’s largest e-waste producer and the third largest in Africa, after South Africa and Egypt.

The lack of proper waste management across the continent leads to land, soil, air and water pollution, as well as greenhouse gas emissions.

Hundreds of thousands of informal waste collectors face hazardous conditions and health risks.

Meanwhile, many industries are in desperate need of recycled materials to reduce their dependence on virgin-mined resources.

The need for efficient, sustainable waste management is growing fast, as is the urgency for the private sector to contribute to sustainable solutions.

Hinckley E-Waste Recycling is one such endeavour. Sourcing much of the e-waste through a network of local collectors, Hinckley’s commitment to both social impact and environmental sustainability is central to the company’s ethos.

Supplying the recycled material needs of clients like Samsung, HP, Lumos, and PZ Cuzzons, Hinckley has been named Best E-waste Recycling Company in Nigeria 2024 by both the Lagos State Environmental Protection Agency (LASEPA) and the Waste Management Society of Nigeria (WAMASON).

Hinckley has also partnered with Carbon Trust and Energy 4 Impact supported by the IKEA Foundation and UK Aid via the Transforming Energy Access platform, to participate in the Ze-Gen (Zero Emission Generator) and productive-use-of-renewable-energy (PURE) programs, replacing diesel generators with second-life battery systems.

Support from the UK Aid funded program, Manufacturing Africa, enabled a critical step towards Hinckley’s success, providing the company with transaction facilitation support led by Kemi Onabanjo and Yasmin Osaghae.

Practical plans for greater impact 

For Hinckley, this is just the beginning of their impact.

Adrian Clews, CEO of Hinckley E-Waste Recycling, said:

“Although e-waste recycling is an emerging income stream for many people in Africa, it is still generally informal and unregulated.

At Hinckley, we see that improving e-waste recycling infrastructure has the potential to decrease negative health and environmental outcomes, while increasing average incomes for over 100,000 Nigerians currently working as informal waste collectors.

This investment will help further our mission of environmental stewardship and livelihood improvement, from formalising e-waste collection to constructing recycling plants that meet international industry standards. Our objective is to effectively manage the increasing volume of complex e-waste across Nigeria in a safe and sound manner.”

“Our investment in Hinckley is based on a compelling business case, anchored on the growing importance of e-waste recycling,” observed Doubra Eghaghe of Alitheia Capital. “Increased production of electric vehicles and adoption of renewable energy is driving demand for batteries and the resources required to manufacture them, while also contributing to the issue of e-waste. Recycling and repurposing the core materials found in batteries is crucial to sustainably meeting this growing demand. Hinckley’s potential to create meaningful social and environmental impact reflects the core ambitions of the uMunthu II fund. We are excited for the opportunity to work together in strengthening, scaling, and literally building Hinckley’s vision for a cleaner, more inclusive future.”

Complete Farmer will leverage the funding in catalyzing the transformation of farming practices in the region and enhance efficiency across the agricultural value chain.

The equity portion of this funding round was co-led by the Acumen Resilient Agriculture Fund (ARAF) and Alitheia Capital, in partnership with Goodwell Investments through its uMunthu II Fund. Joining the initiative were Proparco, Newton Partners, and VestedWorld Rising Star Fund. On the debt financing side, Sahel Capital’s SEFAA Fund, Alpha Mundi Group’s Alpha Jiri Investment Fund, and Global Social Impact Investments have provided crucial support.

Tamer El-Raghy, Managing Director of ARAF, highlighted the progress made by Complete Farmer in facilitating global trade for Ghanaian farmers. He noted that the platform’s technology and farming protocols have enabled farmers to access quality inputs, agronomical support, and premium markets, ultimately resulting in improved yields and income for farmers.

Complete Farmer, founded in 2017 by CEO Desmond Koney, operates as an end-to-end agricultural marketplace connecting African producers with global industries. The platform’s proprietary cultivation protocols enable both smallholder and commercial farmers to cultivate commodities that meet global market specifications, ensuring post-harvest offtake.

The company offers two primary solutions: CF Grower, which assists African farmers in optimizing productivity and gaining access to global markets through precision farming instruments and data-driven cultivation protocols, and CF Buyer, which provides global purchasers with access to commodities grown to their specifications, streamlining the procurement process.

Since a strategic pivot two years ago, Complete Farmer has experienced rapid growth, bringing together over 12,000 farmers across five key regions in Ghana. The platform has overseen the cultivation of over 30,000 acres of land and has successfully delivered commodities to Asia, Europe, and other global destinations while reducing post-harvest losses.

Complete Farmer’s revenue has skyrocketed, reaching $5.3 million by the end of 2022, with projections to reach $7.5 million in 2023. The company, which takes a 30% commission of profits made per trade between farmers and buyers, has ambitious plans to generate additional revenue streams.

Among these initiatives, Complete Farmer is developing an embedded finance product to facilitate direct remittance from buyers to farmers. Additionally, they are working on a vendor platform where farmers can purchase fertilizers and commodities to enhance farm efficiency.

The investment secured in this funding round will be instrumental in scaling these new products, establishing strategic partnerships, expanding domestic operations, and financing CAPEX and working capital investments, including the expansion of fulfillment centers in Ghana and the launch of new ones in markets such as Togo.

Complete Farmer’s commitment to transforming agriculture in Ghana is set to make a significant impact, benefiting both farmers and global industries while contributing to the growth of the nation’s agritech sector.

Goodwell provided funding through uMunthu II, the impact investor’s €150 million fund focused on scalable, early-growth stage businesses in Africa. The investment provides SOUK Farms with a solid foundation for scaling their sustainable agricultural business in Rwanda, enabling them to create resilient systems and value chains that benefit local farmers and the surrounding community.

Founded in 2019, SOUK Farms has already carved out a significant niche in Rwanda’s agricultural landscape, building its own farming operations as well as working with a wide network of outgrowers to cultivate and export high-quality exotic horticultural produce while also serving consumers in the Rwanda market. 

They have achieved this with a unique blend of innovation and a steadfast commitment to strengthening the resilience of local farms against climate change and disruptive rainfall patterns.

Partnering with Goodwell gives SOUK Farms the necessary capital to pursue these ambitions at a wider scale. “The opportunities to create sustainable agricultural practices and improve existing ones in Rwanda are great. Our partnership with Goodwell will drive a huge impact not only for the growth of SOUK Farms but also for the farmers and the communities we work as we continue to offer solutions that improve incomes and create employment while also implementing education and outreach programs for youth and women,” said Seun Rasheed, Founder and CEO at SOUK Farms.

SOUK Farms has been a key player in Rwanda’s socio economic transformation, and their ability to create a positive impact in the local agricultural supply chain is well established. Working closely with over 1,200 farmers across Rwanda, they have greatly improved livelihoods, enabling farmers to earn upwards of 300% more than they did prior to being outgrowers for SOUK Farms. 

Currently, 71% of the company’s workforce are women, aligning with the Rwandan government’s national Agriculture policy which promotes gender equality at all levels of the agricultural value chain.

Their impact efforts and solid business model are an ideal fit for Goodwell’s agricultural investment strategy, which strives to improve value chains, reduce post-harvest losses, and create better livelihoods for smallholder farmers.

“Under the experienced leadership of Seun Rasheed, SOUK Farms has a clear vision for expanding their impact and productivity in a sector with ever-increasing demand. We are proud to support the company in this exciting stage of their business growth, and look forward to seeing how they continue to innovate in the agricultural space. With this investment, we are also pleased to mark our entry into the Rwandan market, further expanding Goodwell’s presence in East Africa,” said Judith Ngonyo, Investment Manager at Goodwell Investments.

This investment comes at a crucial time, enabling SOUK Farms to build on its success, scale operations, and increase the productivity of Rwandan farmers. It also reinforces Goodwell’s commitment to supporting companies that improve livelihoods and deliver affordable, accessible, high-quality goods and services to underserved populations.

Backed by Oxfam Novib Impact Investments, Pepea aims to provide financing to early-stage startups in Kenya, Uganda, as well as Ethiopia, and will provide venture debt with a focus on mezzanine finance, a debt that can be turned into equity.

These early-stage businesses will be between the ages of one to five years. They must be generating revenues, but haven’t raised capital.

The operations of the fund, including the portfolio development, will be managed by Goodwell Investments, providing them with the right structure and systems to become funding ready and raise their first rounds. The initial funding amount would be between $100,000 and $500,000, with follow-on investments of up to $1 million from Goodwell’s funds. Additionally, Oxfam runs an SME incubation program in these three markets.

While the fund targets high-impact tech-enabled businesses, sectors in which priority will be placed include sustainable agriculture, energy, clean mobility, logistics, and waste management sectors, which produce basic goods and services that represent a huge proportion of household spending for lower-income communities. Pepea’s long-term plan is to improve the quality and affordability of these necessities.

Goodwell, established in 2007, has provided equity funding to over 20 businesses, such as Paga, MFS Africa, Sendy, Max.ng and Good nature agro, mainly targeting startups in finance, agriculture and mobility. Last year, it led a $50 million Series C round for e-commerce scaleup Copia Global. Subsequently, the impact investor launched its second fund, the UMunthu II worth $154 million, with a total of €310 million now under its management.

Oxfam Novib launched its first investment fund in 1996 and has since 2015 worked to provide SMEs with access to finance through its Impact SME Development (iSME) program. With the aim of furthering this goal, the organisation has established the Pepea fund, with the intent to help businesses achieve their maximum positive impact within their respective communities.

Where other firms have become more cautious in the face of economic uncertainty, Goodwell recognizes the immense untapped opportunity of the African market, and is expanding their commitment to ignite the growth of inclusive businesses in the region. 

Goodwell is raising €150 million to finance innovative, scalable, small and medium-sized businesses that improve the access and affordability of basic goods and services for un(der)served consumers in Africa. As a first-mover, Goodwell will once again work as a trailblazer, attracting others in the wider ecosystem to invest in previously overlooked sectors.  

Expanding the potential of African entrepreneurs 

In recent years, as markets shift and stagnate in most other geographies, investors are waking up to Africa’s huge economic potential. Across the continent, an increasingly favorable political environment, a young, highly motivated workforce and significant infrastructure improvements are converging to create an atmosphere of exciting possibilities. In the first half of 2022, venture capital investments in Africa reached $3.5 billion – a 133% increase compared to 2021. 

This new wave of African development is being spearheaded by local entrepreneurs with firsthand knowledge of their customers’ needs and challenges. According to Els Boerhof, one of Goodwell’s managing partners: “Our mission-driven investment philosophy delivers both financial and social returns by taking an extremely local approach. Our repeated success is directly connected to working closely with our portfolio companies, bringing together both regional expertise and access to a global business network.” 

Purpose and profit combine to boost economic inclusion 

Despite the positive outlook for the continent as a whole, Africa’s recent prosperity has not translated into better living standards for the majority of its citizens. uMunthu II will invest in companies that deliver affordable basic high-quality goods and services to un(der)served populations. The diversified investment portfolio will focus on financial inclusion (35%), food and agriculture (25%), and mobility and logistics (15%), with a secondary focus on healthcare, education and energy.  

The fund will be co-managed by Alithea Capital, Goodwell’s long-term investment partner based in Lagos, Nigeria. To date, the fund has received €50 million in commitments from private investors, family offices and foundations. The capital will be channeled into at least 35 new portfolio companies.  

uMunthu II builds on Goodwell’s proven track record 

With 15 years’ experience leading impact-focused investments in Africa and India, uMunthu II is Goodwell’s latest fund to support inclusive growth. It is expected to continue the consistent excellent results of its predecessor funds which combined significant social impact with double digit internal rates of return, including 10 exits. To date, the company’s 35 existing portfolio companies have provided over €2.5 billion worth of financial services to over 30 million households, directly created 35,000 jobs and reach consumers in 47 countries.