Dangote Group has received a major boost for its $7 billion (Kh 903b) fertiliser expansion programme targeting Nigeria and Ethiopia after securing a loan from the Africa Finance Corporation (AFC).
The firm has secured $600 million (Ksh 77b) facility from the AFC which will support its fertiliser holding company, Greenview Fertiliser Corp.
The fertiliser expansion programme which will be undertaken by Greenview is projected to help to triple production capacity in Nigeria and establish a major new manufacturing platform in Ethiopia.
“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. AFC has consistently supported Dangote Group at critical stages of our growth, and its renewed commitment reflects confidence in our vision to build globally competitive African industrial platforms,” said Aliko Dangote, President Dangote Industries Limited.
The firm expects the expansion programme to increase urea fertiliser production capacity in Nigeria from 3 million metric tonnes annually to 9 metric tonnes.
The financing will also help Greenview add new urea fertiliser plant in Ethiopia with a capacity of 3 million metric tonnes per year.
This is expected to strengthen regional food security, support agricultural productivity, reduce dependence on imported fertilizer and bolster the continent’s position as a supplier to international markets.
“Closing this productivity gap is essential to Africa’s food security. 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. This is not just an investment in fertilizer production. It is evidence of the Africa we are building,” added Samaila Zubairu, President AFC.
The investment is expected to increase the continent’s urea production capacity which is currently estimated at 6 million metric tonnes annually.
