The Africa Finance Corporation (AFC) has committed USD 600 million to support Dangote Group’s ambitious USD seven billion fertilizer expansion programs, a project aimed at tripling urea production capacity in Nigeria and establishing a major new fertilizer manufacturing plant in Ethiopia.
The financing will be provided to Greenview Fertilizer Corp.
AFC previously served as Co-Coordinating Bank on the USD 3 billion syndicated loan that supported the development of the Dangote Refinery and recently received full repayment of its pioneering USD 300 million senior term loan to Dangote Industries Limited.
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The redeployment of capital at twice the amount of the original facility reflects its strategy of providing early-stage risk capital to transformative projects before recycling capital into new development initiatives once investments reach stable, cash-generating operations, according to AFC.
Under the expansion programme, Dangote plans to increase annual urea production capacity in Nigeria from 3 million metric tons to 9 million metric tons. The project will also include the construction of a new 3 million metric tons per annum urea fertilizer plant in Ethiopia, creating one of the largest fertilizer production platforms globally.
The company said the investment is expected to improve agricultural productivity, reduce dependence on fertilizer imports, strengthen regional food security, and position Africa as a major supplier to international fertilizer markets.
Commenting on the agreement, Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, said.
“Expanding our fertilizer production capacity in Nigeria and developing a new plant in Ethiopia will strengthen Africa’s food security, support agricultural productivity, and deepen the continent’s industrial base.”
He added that AFC’s renewed support demonstrates confidence in Dangote Group’s vision of building globally competitive industrial platforms across Africa.
AFC President and Chief Executive Officer Samaila Zubairu said the project addresses one of Africa’s most pressing long-term challenges: ensuring food security for a rapidly growing population.
He noted that Africa’s population of approximately 1.5 billion people currently consumes only 6 million tons of urea annually, compared with about 40 million tons in India and 50 million tons in China, despite having similarly large populations.
