Sage Grey commits $10M to fund Nigeria's circular economy
What's the deal? Sage Grey FinanceDealroom has a profile for this one. Try Dealroom → Limited has committed $10 million to a Circular Economy Impact Fund (CEIF) to finance 120 businesses across Nigeria. The fund aims to create more than 3,000 direct and indirect jobs and cut carbon emissions by over 10,000 metric tonnes.
Why now? The fund targets a persistent gap: affordable financing for circular economy businesses. Many are small and informal, unable to meet bank demands for collateral and audited accounts.
"The average bank is asking for collateral, audited accounts and years of financial history. Many startups simply don't meet those requirements," said Dumebi Okeke, secretary of the fund.
What's the endgame? Unveiled in Lagos with the Circular Business Platform and Perazim Impact Consulting, and supported by the Consulate General of the Netherlands, the fund provides structured debt financing, technical assistance and governance support. Beneficiaries include startups and SMEs in recycling, waste-to-value solutions, renewable energy and green manufacturing.
The CEIF is structured as an unincorporated private debt fund, deploying capital through four funding windows — from technical assistance for idea-stage businesses to growth financing for mature ones. Though denominated in US dollars, it will be disbursed in naira.
The details: The fund is expected to divert up to 50,000 metric tonnes of waste from landfills, while 30% of the financing is reserved for women-led enterprises. It adopts a revolving debt model to preserve capital and promote financial discipline, unlike conventional grant programmes.
Sage Grey said the initiative builds on its experience financing ventures such as FREEE Recycle. The fund is audited by Deloitte Africa, with legal advisory from Aluko & Oyebode, and is overseen by an investment committee and an advisory committee.
What could go wrong? Commercial lending rates of 30% to 40% make repayment nearly impossible for small enterprises, said Opeyemi Oriniowo, policy adviser at the Netherlands Mission in Nigeria. "We thought there was a gap in terms of nimble capital that's patient enough," he said.
The signal: Sage Grey wants to institutionalise impact investing in Nigeria through stronger governance and rigorous impact measurement. The goal is to build a pipeline of bank-ready businesses capable of attracting larger institutional funding.
Read more: Vanguard
Image credit: Generated with Gemini
