The Africa Finance Corporation (AFC) has approved a $600 million financing facility for the Dangote Group to support a major expansion of its fertiliser operations in Nigeria and the development of a new production plant in Ethiopia.
In a statement released on Monday, AFC disclosed that the funding will be channelled through Greenview Fertilizer Corporation, Dangote Group’s fertiliser holding company. The investment is expected to raise annual urea production capacity in Nigeria from 3 million metric tonnes to 9 million metric tonnes, while an additional 3 million metric tonnes will be produced from the planned Ethiopian facility.
The Dangote Group has estimated the combined cost of the fertiliser projects at about $7 billion.
The expansion comes as African countries continue to depend heavily on imported fertilisers, exposing the continent to global supply disruptions and geopolitical tensions, including the ongoing conflict involving Iran.
According to AFC President and Chief Executive Officer, Samaila Zubairu, the financing will strengthen Africa’s agricultural capacity and reduce reliance on external suppliers.
“By supporting the development of the world’s largest fertiliser platform, AFC is helping build the foundation for Africa to feed itself, create productive jobs and strengthen our economic sovereignty,” he said.
AFC has previously partnered with the Dangote Group, helping to arrange a $3 billion syndicated loan for the 650,000-barrels-per-day Dangote Refinery, the largest refinery on the African continent.