Nigerian drone manufacturer Terra Industries has raised $11.75 million in new funding to scale production at its Abuja factory and open a second manufacturing facility in East Africa as early as this quarter, its chief executive Nathan Nwachuku told Semafor.
The funding round drew backing from more than half a dozen investors, including 8VC, the venture capital firm run by a co-founder of US data analytics company Palantir, and Valor Equity Partners, an early investor in SpaceX. The fresh capital will allow Terra to ramp up output to meet growing demand from both government and commercial customers across the continent.
Founded in 2024, Terra Industries designs and manufactures drones and related defence and surveillance systems for use in security, infrastructure monitoring and industrial operations. While its customer base includes oil, mining and power companies in Nigeria, Ghana and Kenya, Nwachuku said government contracts currently account for the bulk of the company’s revenue.
The planned East African facility reflects rising demand for locally produced unmanned aerial systems, particularly from governments seeking to strengthen border surveillance, critical infrastructure protection and emergency response capabilities without relying entirely on imported equipment.
Africa’s growing drone economy
Drone adoption across Africa has accelerated in recent years, driven by a mix of security needs, infrastructure challenges and the high cost of traditional monitoring and logistics solutions.
On the defence side, drones are increasingly being used by African militaries for intelligence, surveillance and reconnaissance, and in some cases active combat operations, such as in Sudan’s ongoing conflict. Governments are also deploying drones for border patrol, anti-smuggling operations and disaster response.
Beyond defence, drones are playing a growing role in civilian and social services. They are used for mapping, agricultural monitoring, power-line inspection and medical logistics, particularly in areas with weak road infrastructure.
One of the most prominent examples is Zipline, the US-based drone delivery company that pioneered medical supply deliveries in Rwanda a decade ago. In November, Zipline secured $150 million in funding from the US government to expand its healthcare logistics operations, which now span Rwanda, Côte d’Ivoire, Ghana, Kenya and Nigeria.
Local manufacturing gains momentum
Terra’s expansion highlights a broader shift toward local drone manufacturing in Africa, as governments and companies look to reduce dependence on foreign suppliers, shorten supply chains and tailor technology to local operating conditions.
For Nigeria, where security challenges, vast geography and infrastructure gaps persist, domestically produced drones offer both strategic and economic advantages. The Abuja factory has positioned Terra as one of the few homegrown manufacturers operating at scale, rather than simply assembling imported components.
With fresh capital, expanding production capacity and a footprint in East Africa, Terra Industries is betting that demand for African-built drones—across defence, industry and public services—will continue to grow rapidly in the years ahead.
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