Africa Finance Corporation (AFC), has committed $600 million to support a $7 billion fertiliser expansion programme by Dangote Group aimed at tripling fertiliser production capacity in Nigeria and establishing a major manufacturing base in Ethiopia.
The funding will be provided to Greenview Fertiliser Corp., Dangote’s fertiliser holding company, as part of an ambitious plan designed to strengthen food security, boost agricultural productivity and expand Africa’s industrial capacity.
The transaction deepens AFC’s long-standing relationship with Dangote Group, following its involvement in several landmark industrial projects. AFC previously served as Co-Coordinating Bank on the $3 billion syndicated loan that financed the Dangote Refinery and recently received full repayment of a $300 million senior term loan that helped advance the refinery project from development to operation.
According to AFC, the latest investment reflects its strategy of providing early-stage capital to transformative projects before recycling funds into new infrastructure and industrial ventures once assets reach stable operations.
Dangote Fertiliser Expansion
Under the expansion programme, Dangote plans to increase urea fertiliser production capacity in Nigeria from 3 million metric tonnes per annum to 9 million metric tonnes per annum. The company will also develop a new 3 million metric tonnes per annum urea fertiliser plant in Ethiopia.
The initiative is expected to reduce Africa’s dependence on imported fertiliser, strengthen regional food security and position the continent as a more significant supplier to global agricultural markets.
Commenting on the investment, President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the deal as another milestone in the partnership between both organisations.
“This investment marks another important milestone in our long-standing partnership with AFC as we embark on the next phase of Dangote Fertilizer’s growth,” Dangote said.
He added that expanding fertiliser production in Nigeria and building a new plant in Ethiopia would support agricultural productivity, strengthen Africa’s food security and deepen the continent’s industrial base.
AFC President and Chief Executive Officer, Samaila Zubairu, said the investment was critical to addressing Africa’s future food requirements.
“The question before Africa is simple: how will we feed 2.5 billion people by 2050?” Zubairu said.
He noted that Africa’s 1.5 billion people currently consume about 6 million tonnes of urea annually, compared with 40 million tonnes in India and 50 million tonnes in China, despite having comparable population sizes.
According to him, increasing fertiliser production is essential to narrowing Africa’s agricultural productivity gap and improving food security.
