Ghanaian startup, Uvuko Company Limited has raised funding from Zidicircle’s Diaspora Angel Investors through their investment vehicle: Zidicircle Coop- to scale its plastic waste management and recycling within Tarkwa in the Western Region of Ghana. Founded in 2017 by Kofi and Aba Ackon, Uvuko Company Limited aims to promote sustainable cities by reducing the effect of plastic waste pollution on the environment.
Entrepreneurship Training and Pitching
Uvuko Company Limited was incubated under the Boosting Green Employment and Enterprise Opportunities in Ghana (GrEEn) project, a four-year action from the European Union, the Embassy of the Kingdom of the Netherlands in Ghana, SNV Netherlands Development Organisation, and the United Nations Capital Development Fund (UNCDF) that aims to create greater economic and employment opportunities for youth, women, and returning migrants by promoting and supporting sustainable, green businesses in two selected regions in Ghana: the Ashanti and Western regions.
After successfully completing the GrEEn Incubation Programme, a 6-month business advisory training provided by SNV Ghana and its business hub partners in the two regions (Kofi was supported by U-hub located in Tarkwa) where GrEEn is being implemented, Kofi Ackon pitched to Diaspora and Ghanaian angel investors trained under the Green Venture Backers’ Programme, a partnership between Zidicircle and SNV Ghana that provides coaching and support to interested diaspora and in-country angel investors. (The Green Venture Backers’ Programme is geared at mobilizing a fraction of diaspora remittances and in-country savings, converting them into venture investments to bridge the financing gap and provide financial inclusion to green and sustainable start-ups and innovations by entrepreneurs in the circular economy).
Under the partnership with SNV Ghana, green entrepreneurs who graduated (like Kofi) or were currently enrolled in the GrEEn Incubation Programme then pitch their products and services to trained angel investors from Zidicircle. After the pitch, Zidicircle’s angel investors, under the guidance of the Zidicircle Coop (a diaspora-driven special-purpose investment vehicle) evaluate the businesses and collectively invest in any chosen green company.
From a Problem to a Business
Kofi Ackon was inspired to build Uvuko Company Limited after being unemployed upon completing his postgraduate degree and experiencing severe flooding caused by a blockage in the main drain by PET bottles and polyethene bags where he lived, “After experiencing the severe flooding, I decided to find ways of getting plastics off our street and out of our drains. I discovered the plastic recycling industry was a budding one in Ghana and there was a high demand for recycled plastics. So I decided to go into plastic recycling to help rid our streets of plastics and create employment for myself and the youth in my community.” says Kofi.
Once the company was set up, Kofi and his team went ahead to build a plastic recycling culture in Tarkwa by sensitising people in the communities, schools, markets, churches and organizations in their city. “Right from the onset of Uvuko, we realized the need for a strong relationship with all stakeholders in the municipalities. Through these engagements, we were able to liaise with chiefs and local government authorities to set up collection points in the communities. We engage members in the communities, mostly women, as agents. The impact is seen in how clean some communities have become and the extra income that goes to households in the communities,” stated Kofi.
The plastic recycling culture that Uvuko is continuously building has drastically grown over a period of 5 years from collecting 150 kg of plastics per month to collecting over 20,000 kg of plastics per month. This has to a great extent reduced the volume of plastic that ends up in drains and landfills in the municipality, but there’s still more that needs to be done.
Once the plastics are collected, they are sorted, shredded, washed and dried into flakes and pellets which are then packaged in recyclable sacks and sold to plastic-manufacturing companies. The company also promotes the reuse of plastics among local waste management enterprises by providing them with refurbished dustbins. What’s more, the brand also sells clean and reusable plastic gallons to SMEs that produce liquid soap.
Over the years, the venture has created a loyal market for its recycled products. Kofi attributes this to a strong value chain, “What makes our flakes and pellets one of the best in Ghana lies in the strong value chain we have created over the years. From collection to processing, all the players involved are educated on the Resin Identification Codes (RIC) to ensure that quality recyclable plastics make it to the end of the processing line.”
What’s Next for the Company?
With the funds raised, Uvuko Company Limited plans to get more machinery to scale up the production of flakes and pellets, and introduce renewable energy solutions to aid in lighting during production, “We are always looking for new means of reducing cost and improving the quality of our products. It’s no wonder we produce one of the best flakes in Ghana.” adds Kofi
The company also plans to level up its education on plastic recycling by working more with communities and institutions within the Tarkwa-Nsuaem Municipality to collect more plastic waste. Currently, Uvuko works with basic schools, mining service contractors, sachet water producers, bulk aggregators in over 20 communities, local gin producers, liquid soap manufacturers, waste management firms, and over 690 individual collectors in Tarkwa.
Kofi also plans to expand production, “The funding has created an opportunity for Uvuko to add more value to the plastic waste it collects. It will increase our capacity to educate and add more communities in the three adjourning districts by the close of next year.”
He continues, “The funding will also create an avenue to serve not just the local market but the foreign ones as well. However, the majority of the impact will be felt by the various collectors, transporters, agents, aggregators and individuals along our value chain. The extra capacity will rail in more income that can support the growth of everyone involved in the value chain.”
Genevieve Parker-Twum, the Senior Incubation and Acceleration Advisor for the GrEEn Project in SNV Ghana expressed elation about the funding provided to Uvuko, “We’re excited about this opportunity for Uvuko Company to expand its business. Kofi was very committed to the GrEEn Incubation Programme and to growing his business. Our hope is that our partnership with Zidicircle on the Green Venture Backers Programme will be the stepping stone for improved cooperation with Ghanaian diaspora investments in SMEs.”
Fridah Ntarangwi, the Managing Director of Zidicircle also elaborated on why the investors chose Uvoko, “Kofi and his team really impressed our investors. They are solving a major environmental problem, and they have managed to get all stakeholders involved at the local community level. They are also providing employment opportunities along the plastic recycling value chain. This investment will enable them to acquire the necessary equipment to scale creating a better environment with more opportunities for the youth.“
“The Ghanaian Investment Promotion Center has been very supportive to the diaspora investors thus making this investment possible“, continues Fridah Ntarangwi.
From Zidicircle and SNV Ghana, we wish Kofi and his team at Uvuko Company Limited all the best as they step into this new chapter of their journey!
About Zidicircle Coop- Diaspora Investments
The Diaspora Investments Coop is a special-purpose investment vehicle that enters into investment agreements with start-ups or small and medium-sized businesses as an investor for and on behalf of the venture backer who has decided to invest in the business concerned. The beneficial ownership from those investments lies with the investors.
The investment vehicle was initiated by an organised group of diaspora individuals from Zidi B. V’s Venture Backers programme and other professionals, entrepreneurs and like-minded international angel investors who want to reduce the knowledge, resources and funding gap for startups and small and medium businesses founded by underserved entrepreneurs who are driven by a positive impact on the environment, society and support the sustainable development goals (SDG’s).
About SNV
SNV Netherlands Development Organisation is a not-for-profit international development organization that makes a lasting difference in the lives of people living in poverty by helping them raise incomes and access basic services. SNV focuses on three key sectors: agriculture, renewable energy and Water, Sanitation and Hygiene (WASH). SNV has a long-term, local presence in over 25 countries in Asia, Africa and Latin America, and has been working in Ghana since 1992.
The Boosting Green Employment and Enterprise Opportunities in Ghana (GrEEn) project is a four-year action from the European Union and its European Union Emergency Trust Fund (EUTF) for Africa, the Embassy of the Kingdom of the Netherlands in Ghana, SNV Netherlands Development Organisation and the United Nations Capital Development Fund (UNCDF). The project aims at creating greater economic and employment opportunities for youth, women and returning migrants by promoting and supporting sustainable, green businesses and local climate-resilient economies in two regions in Ghana: Ashanti and Western. Within the GrEEn project, SNV is responsible for two result areas:
- Employability and entrepreneurship capabilities of youth, women and returnees are improved in selected sectors, for the benefit of green and climate-resilient local economies.
- SMEs, offering decent and sustainable jobs to youth, women and returnees, are incubated and/or accelerated and contribute to green and climate-resilient local economies.
About Zidi B.V
Zidi B.V is a business incubator and Investments Advisory firm headquartered in the Netherlands that promotes inclusive entrepreneurship and Financing for the Global diaspora & SMEs in Africa. Zidi’s Venture Backers Programme is targeted at local and diaspora professionals who are interested in investing in SMEs in their home countries. We provide various interventions;
- Our corporate services include; Training boot camps for startups/SMEs, angel investing training, and angel investment management.
- Our advocacy roles include Mobilizing global diaspora towards economic development in Host and home countries, Rallying governments into creating enabling environment for the diaspora and creating vibrant entrepreneur support and funding ecosystems
- We work with Entrepreneurs, investors, development partners, corporate partners, Consultants and organizations that share these goals.
Read more about the programme here
For any comments or correspondent please email Coop@zidicircle.com or greenghana@snv.org
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