Norfund, the Norwegian Development Finance Institution, and Unilever Nigeria have made substantial investments in Wecyclers Nigeria Limited, a recycling company headquartered in Lagos. Norfund has committed Euro 2 million (equivalent to approximately USD 2,247,790.00) as a convertible loan, while Unilever Nigeria has provided an additional USD 2 million. These investments have raised a total of approximately USD 4,247,790.00 for Wecyclers.
The primary purpose of these investments is to support Wecyclers’ expansion and development. The funds will be utilized to establish a new recycling plant in Ogun State, Nigeria. This plant will specialize in recycling PET bottles, transforming them into new bottles both locally and in Europe. With a projected annual capacity of 12,000 tons, the plant aims to significantly contribute to reducing plastic waste and promoting sustainable waste management practices.
Why The Investors Invested
The investments made by Norfund and Unilever Nigeria are driven by several compelling reasons. The pressing global issue of plastic pollution necessitates urgent and sustainable solutions. The world’s oceans currently contain an estimated 171 trillion pieces of plastic, with projections indicating a potential tripling of this number by 2040. The investments in Wecyclers aim to showcase an effective model for recycling and waste management, encouraging the development of the recycling industry as a crucial step in tackling plastic pollution.
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Furthermore, the investors recognize the potential for job creation and economic growth associated with sustainable waste management practices. Wecyclers’ expansion and the establishment of the new recycling plant in Ogun State are expected to generate a significant number of job opportunities. This not only contributes to poverty reduction but also helps build resilient and sustainable communities.
Additionally, Wecyclers’ successful model of waste collection directly from households, kiosks, and franchises, combined with their close collaboration with a European plastic producer, ensures that the recycling process and output quality meet international standards. The investors view this as a promising partnership that fosters trust, credibility, and the promotion of sustainable waste management practices.
A Look at Wecyclers
Wecyclers was founded in Nigeria in 2012 and has become a leading recycling company in the country. The company was founded by Olawale Adebiyi and his team. While Wecyclers is headquartered in Lagos, it operates in various Nigerian states, with its primary markets focused on urban areas.
The startup’s unique approach involves the direct collection of recyclable materials from households, as well as through strategically located kiosks and franchises. By incentivizing individuals to participate in recycling efforts, Wecyclers has successfully created a model that encourages widespread engagement and increases the collection of plastic waste.
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In addition to the investments from Norfund and Unilever Nigeria, Wecyclers has garnered support from Serioplast, a prominent Italian plastic packaging manufacturer. Serioplast has been a minority shareholder in Wecyclers since 2018, providing expertise and resources to support the company’s growth.
Wecyclers received the additional USD 2 million in funding from Unilever Nigeria and Bridges Outcomes Partnership. This investment, facilitated through an innovative “Development Impact Bond,” aims to expand Wecyclers’ collection network and enhance its impact on plastic waste management. Over the next five years, Wecyclers anticipates collecting up to 30,000 tons of recyclable plastic waste and creating approximately 700 jobs.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard