Nigerian e-waste recycling sector receives support from Goodwell and Alitheia
In a move aimed at addressing the growing challenge of e-waste globally, particularly in Nigeria, a joint investment has been made by Goodwell Investments and Alitheia Capital into Hinckley E-Waste Recycling, a Nigerian e-waste management firm.
Hinckley E-Waste Recycling, with its ambitious target of recycling up to 30,000 tonnes of waste annually, sources most of its e-waste from a network of local informal collectors. The company's focus on responsible collection and recycling of complex e-waste streams, such as lithium-ion and lead-acid batteries, is expected to contribute significantly to the circular economy.
Nigeria, the largest e-waste producer in West Africa with an annual generation of about 500,000 tonnes, will benefit from the construction of two state-of-the-art recycling plants in Ogun State. These plants, one for lithium-ion batteries and another for lead-acid batteries, will promote safer, formalized waste management jobs and improve livelihoods by integrating informal waste collectors into a structured network.
The investment in Hinckley is part of the objectives of the uMunthu II fund, an impact-focused investment fund co-managed by Alitheia IDF and Goodwell Investments. The fund specializes in providing "smart equity" to early growth-stage companies across Africa, particularly those combining financial returns with positive social and environmental impact.
The uMunthu II fund's objectives also include facilitating responsible collection and recycling of complex e-waste streams, enabling the construction of specialized recycling facilities, and supporting an industry that recovers valuable materials for manufacturing batteries and electronic devices. This reduces reliance on virgin mining and contributes to the circular economy.
Goodwell Investments sees enormous potential in supporting businesses that turn environmental challenges into economic opportunity. The investment in Hinckley E-Waste Recycling marks Goodwell's strategic entry into waste management, emphasizing "profit with purpose" opportunities where financial success is aligned with meaningful environmental and social impact.
Meanwhile, 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. Recycling e-waste creates safer, better-paid jobs in the sector, making it a crucial step towards sustainable waste management.
In other news, SHIFT Invest has announced a €92m first close of an impact fund focusing on biodiversity and EU funding. Goodwell and Alitheia are also offering financial and technical support to women-led green businesses in Kenya, Malawi, Mozambique, and Tanzania through the IYBA WE4A programme.
The growing demand for battery components due to the increasing popularity of electric vehicles and renewable energy further underscores the importance of sustainable e-waste management. Recycling e-waste allows for the recovery of high-value materials, reducing dependence on virgin-mined resources.
A study found that UK pension funds overlook impact reports in their investment decisions, highlighting the need for more awareness and commitment towards sustainable and impactful investments. The investment in Hinckley E-Waste Recycling through the uMunthu II fund is a step towards addressing this gap and promoting sustainable business practices.
References: 1. Goodwell Investments 2. Alitheia Capital 3. uMunthu II Fund 4. Hinckley E-Waste Recycling 5. SHIFT Invest
- Goodwell Investments and Alitheia Capital's investment in Hinckley E-Waste Recycling aims to support business models that combine financial returns with positive social and environmental impacts, such as sustainable e-waste management.
- The uMunthu II fund, co-managed by Alitheia IDF and Goodwell Investments, specializes in providing "smart equity" to African companies with a focus on the circular economy, like Hinckley E-Waste Recycling, which recycles e-waste to reduce reliance on virgin mining.
- Sustainable e-waste management, like Hinckley's, is crucial in addressing environmental challenges since it recovers valuable materials and contributes to the circular economy, reducing greenhouse gas emissions and environmental pollution.
- Considering the growing demand for battery components due to electric vehicles and renewable energy, the recovery of materials from e-waste becomes even more important.
- UK pension funds could benefit from increased awareness and commitment towards sustainable and impactful investments, as they currently overlook impact reports, according to recent studies.
