Goodwell Investments and Alitheia Capital have announced their investment in Hinckley E-Waste Recycling Ltd. This impact-focused funding will enable the 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 that provides smart equity to early-stage growth 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 is 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.
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 safely and soundly.”
“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.”
