By Wale Afolabi
The Africa Finance Corporation (AFC) has committed a $600 million financing facility to support a $7 billion fertiliser expansion programme by Dangote Group aimed at tripling production capacity in Nigeria and establishing a major new manufacturing platform in Ethiopia.
The funding, provided to Greenview Fertiliser Corp., Dangote’s fertiliser holding company, marks a significant milestone in the long-standing partnership between AFC and the Dangote Group as both organisations deepen efforts to strengthen Africa’s industrial and agricultural value chains.
According to AFC, the expansion programme will increase Nigeria’s urea fertiliser production capacity from three million metric tonnes per annum (MTPA) to nine million MTPA, while also supporting the development of a new three million MTPA fertiliser plant in Ethiopia.
The project is expected to improve regional food security, boost agricultural productivity, reduce dependence on imported fertilisers and enhance Africa’s competitiveness in global fertiliser markets.
The latest transaction builds on AFC’s previous involvement in some of Dangote Group’s largest industrial projects.
The corporation served as Co-Coordinating Bank for a $3 billion syndicated loan that supported the development of the Dangote Refinery and recently received full repayment of its pioneering $300 million senior term loan to Dangote Industries Limited, which helped advance the refinery project.
AFC said the redeployment of capital at double the previous amount reflects its strategy of providing early-stage risk capital to transformative projects before recycling investments into new developmental initiatives once projects achieve stable operations.
Speaking on the financing arrangement, Aliko Dangote described the investment as another major step in the growth of Dangote Fertilizer and Africa’s industrial development agenda.
“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.
Expanding our fertiliser 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,” Dangote said.
He noted that AFC had consistently supported Dangote Group at critical stages of its growth, adding that the latest commitment demonstrated confidence in the company’s vision of building globally competitive industrial platforms in Africa.
Also commenting, Samaila Zubairu said Africa must significantly expand fertiliser production to meet the food needs of its rapidly growing population.
“The question before Africa is simple: how will we feed 2.5 billion people by 2050? Africa’s 1.5 billion people consume just six million tonnes of urea annually, compared to 40 million tonnes in India and 50 million tonnes in China, despite having similar-sized populations,” Zubairu said.
He added that closing the continent’s agricultural productivity gap was essential to achieving food security, creating jobs and strengthening economic sovereignty.
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AFC noted that recent disruptions in global supply chains and commodity markets have highlighted the risks associated with Africa’s dependence on imported agricultural inputs despite the continent’s vast natural gas reserves and extensive uncultivated arable land.
The corporation said the fertiliser expansion aligns with its broader investment strategy focused on strengthening critical sectors such as energy, transport, logistics, industrial processing and food security.
It added that alongside investments in strategic transport corridors, ports, power generation and industrial platforms, AFC remains committed to supporting projects that increase Africa’s capacity to produce, process and distribute essential goods while expanding exports to regional and international markets.
