Earlier this year, Lagos-based private equity firm Aruwa Capital Management invested in Yikodeen, a Nigerian manufacturer of safety boots for workers in the oil and gas, construction, power and manufacturing sectors.
Founded by entrepreneur Yinka Atunde, Yikodeen is capitalising on increasing health and safety requirements in workplaces. “With increased regulation and the need for corporations to comply, we’re very well positioned,” said Adesuwa Okunbo Rhodes, Aruwa’s managing partner, in an earlier interview with How we made it in Africa.
Nigeria’s oil and gas industry is increasingly embracing ‘local content’ policies, which require companies to prioritise Nigerian-made products, hire local talent, and partner with indigenous firms for contracts and supplies. Yikodeen has benefited from this trend as one of the few domestic manufacturers certified by the National Content Development and Monitoring Board to supply safety footwear to the sector.
Okunbo Rhodes also noted that many of Yikodeen’s corporate clients pay in US dollars, providing a natural hedge against the Nigerian naira’s steep depreciation in recent years. For private equity funds reporting returns in dollars, a weakening currency can quickly erode gains made by a business.
With Aruwa’s backing, Yikodeen is set to expand its manufacturing capacity. “They had the capacity to do about 30,000 pairs of safety boots annually before we invested. With our investment, we’re actually 10Xing that capacity,” Okunbo Rhodes said.
She also sees room for expansion beyond Nigeria, citing demand across West Africa.
