uMunthu Investment Company II, a Mauritius-based private equity fund, is set to acquire a 26% stake in Hinckley Ewaste Recycling Limited, one of Nigeria’s leading electronic waste recycling firms.

Details of the transaction were disclosed in a notification submitted to the Federal Competition and Consumer Protection Commission.

The investment will be carried out through a Share Subscription Agreement, involving the purchase of 47.8 million preference shares in Hinckley, representing a significant capital injection to support the company’s operations.

Founded with the mission to address Nigeria’s escalating electronic waste (e-waste) challenge, Hinckley Ewaste Recycling specializes in the collection, dismantling, and resale of end-of-life electrical and electronic equipment.

As noted in the FCCPC notification, the Lagos-based company runs a recycling warehouse where devices such as used phones and laptops are processed into components like batteries, printed circuit boards, and plastic casings, which are subsequently sold to both local and international recyclers.

The investment will be made through a Share Subscription Agreement and involves acquiring 47.8 million preference shares in Hinckley, providing a significant boost to the company’s capital for its operations.

The deal will bolster Hinckley’s operations by increasing its capacity for infrastructure improvements and working capital, helping the company grow its presence and efficiency in Nigeria’s emerging e-waste sector.

uMunthu Investment Company II is a pan-African impact fund focused on investing in high-growth small and medium-sized enterprises across Africa.

Managed by Goodwell Investments, the fund focuses on socially responsible investments.

The parties noted in the deal notice that the transaction supports uMunthu’s goal of backing businesses that generate both financial returns and positive environmental or social outcomes.

“Hinckley presents a compelling growth opportunity within the high-potential e-waste management sector in Nigeria.

“The company’s experienced management team and business model align well with uMunthu’s investment philosophy,” it stated.

The investment is also expected to advance sustainable development goals by promoting environmental sustainability, creating jobs, and enhancing resource circularity in Nigeria.

Nigeria currently grapples with a serious e-waste challenge, serving as a major destination for both locally generated and imported electronic waste.