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.”

The post Goodwell Investments and Alitheia Capital Invest in Nigeria’s Hinckley to Expand E-Waste Recycling appeared first on Tech | Business | Economy.

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. 

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