The Investment Rise in African Beauty: Where Is the Funding Going?

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Inside the Beauty Business | October 2026

By Sinmisoluwa Adesanya

Africa's beauty industry is attracting a new wave of investment, with multinational corporations expanding manufacturing facilities, African-owned businesses securing growth financing, and investors directing capital towards local ingredient production. Across several markets, these developments are raising an important question: is Africa becoming a more significant production base for the global beauty industry?

Recent announcements suggest that investment is moving into different parts of the beauty value chain in Africa.

In South Africa, Unilever has expanded production of Vaseline Petroleum Jelly for international markets. In Egypt, L'Oréal is increasing manufacturing capacity at its regional export hub. Meanwhile, investments and financing proposals in Ghana, Senegal, Uganda and Tanzania are targeting local processing, manufacturing and the expansion of African beauty businesses.

Although these developments do not yet establish a continent-wide investment boom, they offer important insights into where capital is being directed, the opportunities investors are identifying, and the challenges that could determine whether this investment translates into long-term industrial growth.

1. Multinational Beauty Companies Are Expanding African Manufacturing

Some of the most significant recent announcements involve established multinational companies increasing their production capacity in Africa. In October 2026, Unilever commissioned a new Vaseline Petroleum Jelly production line at its Maydon Wharf facility in Durban, South Africa, following an additional R100 million investment. The factory, which dates back to 1912, already supplies approximately 60% of Unilever's global Vaseline Petroleum Jelly volume. The expansion is expected to increase its production capacity, with reports indicating the facility could account for up to 80% of global supply.

The investment is significant beyond its financial value. Unilever reports that the proportion of materials sourced locally in South Africa increased from 40% in 2019 to 80% in 2025, while approximately 95% of the company's products sold in the country are manufactured domestically. These figures demonstrate how an established manufacturing operation can support local suppliers while serving international markets.

A similar development is taking place in North Africa. In September 2026, L'Oréal announced an EGP 240 million investment commitment to expand its manufacturing facility in Egypt's 10th of Ramadan City. The plant, L'Oréal's only manufacturing facility in the Middle East and North Africa, produces skincare, haircare and hair colour products.

Over the preceding five years, the facility manufactured approximately 442 million units, with 85% of its production exported to 20 countries across the region. The latest investment is intended to increase capacity, improve operational efficiency and support expansion into additional export markets.

Together, these investments illustrate an important dimension of Africa's beauty manufacturing economy. Facilities located on the continent are not necessarily designed only to satisfy local demand. Some are already integrated into global production networks, supplying products to consumers across multiple countries.

For African economies, the potential benefits extend beyond the presence of international brands. Manufacturing investments can support industrial employment, local procurement, technology transfer and export earnings. However, the extent of these benefits depends on how deeply production facilities are connected to domestic suppliers, workers and supporting industries.

2. African-Owned Beauty Businesses Are Attracting Growth Capital

While multinational investments attract considerable attention, financing for African-owned businesses represents another important development. In May 2026, the International Finance Corporation (IFC) disclosed a proposed financing package of up to US$20 million for Movit Products Limited, a Ugandan manufacturer of personal care and hygiene products.

The proposed financing would support the establishment of a new manufacturing facility in Kibaha, Tanzania, alongside equipment purchases and working capital for Movit's existing Ugandan operations. The company already distributes products across ten African countries, making the proposed expansion an example of an African manufacturer seeking to strengthen its regional production network.

Importantly, the IFC financing was disclosed as pending approval. It should therefore be understood as a proposed investment rather than a completed disbursement.

Another example comes from Lyvv Cosmetics, an African-founded beauty company with operations connected to Senegal and Ghana. In March 2026, the company announced a US$1 million investment partnership with Barka Capital, directed towards expanding manufacturing, strengthening botanical ingredient sourcing and supporting international distribution.

The investment is also intended to support a natural oils supply chain linked to environmental restoration and the creation of more than 100 rural jobs.

These developments are particularly relevant because access to finance remains an important constraint for many African beauty businesses. Manufacturing requires capital for equipment, facilities, product testing, packaging, regulatory compliance and inventory, often long before a business generates sufficient revenue to recover those costs.

Growth financing can therefore influence whether a beauty company remains a small domestic operation or develops the capacity to supply multiple markets.

At the same time, the size, structure and accessibility of these investments matter. A handful of successful financing announcements does not necessarily indicate that capital has become widely available to emerging beauty entrepreneurs.

3. Investment Is Also Moving Towards Africa's Beauty Ingredients

Beauty manufacturing extends beyond finished skincare, haircare and cosmetic products. It also depends on the processing of raw materials, including botanical oils, butters and other ingredients used in formulations.

This is particularly relevant in West Africa, where shea production plays an important role in the global cosmetics and food industries.

In February 2026, Ghana's Ministry of Food and Agriculture signed a memorandum of understanding with AAK Ghana Limited concerning a proposed US$90 million investment in shea processing. The initiative includes plans for an industrial processing facility and measures to strengthen local value addition.

The investment announcement is notable given the growing policy attention directed towards domestic shea processing across West Africa. Several countries, including Nigeria, Mali, Togo and Côte d'Ivoire, have introduced restrictions or suspensions affecting raw shea exports, while Burkina Faso has moved towards a controlled seasonal export arrangement.

Although these policies differ in scope and implementation, they share a broad objective: encouraging more processing to take place within producing countries rather than exporting raw materials for value addition elsewhere.

Investment in processing facilities could help advance this objective by increasing demand for locally sourced raw materials, supporting manufacturing employment and strengthening the supply of processed ingredients. However, a distinction is necessary. Shea processing serves both the cosmetics and food industries, and investments in the sector should not automatically be attributed entirely to beauty.

Furthermore, export restrictions alone do not guarantee industrial growth. Their effectiveness depends on the availability of financing, reliable energy, processing technology, transport infrastructure and sufficiently competitive domestic markets.

The relationship between industrial policy and private investment is therefore one of the most important developments to watch.

4. What Is Driving Investment in African Beauty?

The investments taking place across these markets are not identical, but several commercial and structural considerations help explain their significance.

Regional and international market access. Manufacturing facilities in South Africa and Egypt demonstrate the value of production locations capable of supplying multiple countries. Regional trade arrangements, logistics infrastructure and proximity to consumer markets can influence where companies choose to invest.

Localisation and supply-chain development. Increasing domestic sourcing can reduce certain import dependencies and create opportunities for local suppliers. Unilever's sourcing figures in South Africa offer an example of how manufacturing investment can be accompanied by deeper local procurement.

Industrial policy and value addition. Governments are increasingly examining how to retain more economic value from locally produced raw materials. In the shea industry, this has contributed to export restrictions and initiatives intended to encourage domestic processing.

Growth opportunities for African businesses. Companies such as Movit and Lyvv illustrate how investment can support African-owned enterprises seeking to expand manufacturing, distribution and regional operations.

Sustainability and production efficiency. Environmental performance is also becoming part of manufacturing investment decisions. L'Oréal's Egyptian facility operates on renewable electricity and uses recycled or reused water for industrial processes, demonstrating how production expansion can intersect with resource-efficiency objectives.

Taken together, these factors suggest that beauty investment should be examined not only in terms of capital committed, but also in terms of the industrial capabilities being developed.

5. Will More Investment Translate Into a Stronger African Beauty Industry?

The growing visibility of beauty manufacturing investments presents opportunities, but it also raises questions about who benefits and whether the investments will strengthen the wider industry.

One concern is the difference between manufacturing activity and local ownership. A multinational factory may create employment, increase exports and purchase materials domestically without necessarily improving access to finance or market opportunities for independent African beauty brands.

Another challenge is the uneven distribution of investment. Countries with established industrial infrastructure, reliable logistics, large markets and predictable regulatory environments may be better positioned to attract manufacturing capital than countries where these conditions remain limited.

There is also the question of regulatory readiness. Beauty manufacturers operating across multiple African markets must navigate different requirements concerning product registration, ingredient restrictions, labelling, quality standards and import procedures. These differences can increase compliance costs and complicate regional expansion.

For African-owned businesses, the challenge is often more fundamental. Accessing affordable capital, maintaining product quality, meeting manufacturing standards and developing reliable distribution networks can determine whether a business is capable of scaling.

Greater investment will therefore be most valuable when accompanied by policies that strengthen local suppliers, improve regulatory coordination, support technical skills and make industrial financing more accessible.

The African Continental Free Trade Area offers a potential framework for greater regional market integration, but realising its benefits for cosmetics manufacturers will also require progress on standards, trade procedures and regulatory cooperation.

Conclusion: Beyond Investment Announcements

The recent investments in South Africa, Egypt, Ghana and other African markets reveal different dimensions of a changing beauty economy. Multinational companies are expanding established production facilities. African-owned businesses are seeking capital to increase manufacturing capacity and enter new markets. Investment in botanical ingredients and processing infrastructure is also drawing attention to the economic value of Africa's natural resources. These developments are encouraging, but their long-term significance will depend on more than the amounts announced.

The more important questions are whether these investments will strengthen African manufacturing capabilities, create opportunities for local businesses, support competitive regional supply chains and enable more value to be retained within the continent.

Africa's beauty industry is attracting investment. The next question is how much of that investment will translate into lasting industrial development.

Sources:

- Unilever — R100 million Durban expansion

- L'Oréal — Egyptian manufacturing expansion

- IFC — Movit Products financing disclosure

- Ghana — AAK shea-processing investment agreement

- Lyvv Cosmetics — Investment announcement

Inside the Beauty Business is a research and industry analysis series by Beauty and Cosmetics Law Africa (BCLA), examining the commercial, legal and policy developments shaping Africa's beauty and personal care industry.