Financial institution, Sage Grey Finance Limited, has committed $10 million to a Circular Economy Impact Fund, CEIF, to finance 120 businesses, create more than 3,000 direct and indirect jobs, and cut carbon emissions by over 10,000 metric tonnes.
The firm also said the fund is expected to divert up to 50,000 metric tonnes of waste from landfills, while 30 per cent of the financing has been reserved for women-led enterprises.
According to the company, the fund will provide structured debt financing, technical assistance and governance support to startups and small and medium-scale enterprises engaged in recycling, waste-to-value solutions, renewable energy, green manufacturing and other circular economy businesses.
Sage Grey said the initiative builds on its experience financing circular economy ventures, including FREEE Recycle, and is designed to institutionalise impact investing in Nigeria through stronger governance, independent oversight and rigorous impact measurement.
Speaking on the initiative, Secretary of the Fund, Dumebi Okeke, said access to finance remains one of the biggest challenges facing businesses in the sector.
She said: “The problem with the space is that you have people who are usually very small and informal. The average bank is asking for collateral, audited accounts and years of financial history. Many startups simply don’t meet those requirements.”
Structured as an unincorporated private debt fund, the CEIF will deploy capital through four funding windows, ranging from technical assistance for idea-stage businesses to growth financing for more mature enterprises.
Although denominated in United States dollars, the facility will be disbursed in naira, with investments expected to create a pipeline of bank-ready businesses capable of attracting larger institutional funding.
Unlike conventional grant programmes, the fund adopts a revolving debt model designed to preserve capital while promoting stronger governance, financial discipline and long-term commercial viability among beneficiaries.
Managing Director of Sage Grey Finance, Temitope Runsewe, said the facility was structured to provide financing tailored to the different stages of business growth, enabling enterprises to access capital from startup through expansion before graduating to larger investors.
Also speaking, Policy Adviser on Economic Affairs and Public Diplomacy at the Netherlands Mission in Nigeria, Opeyemi Oriniowo, said the initiative was conceived to bridge the financing gap facing circular economy businesses.
“We thought there was a gap in terms of nimble capital that’s patient enough,” he said.
According to him, expecting small and medium-sized enterprises to borrow at commercial interest rates of between 30 and 40 per cent makes it almost impossible for them to remain profitable or repay their loans.
He said the fund is expected to support businesses operating in the circular economy while advancing Nigeria’s transition to a more sustainable and inclusive economy.
The fund is audited by Deloitte Africa, with legal advisory services provided by Aluko & Oyebode, and is overseen by an Investment Committee and an Advisory Committee.
