AFC Backs Dangote Fertiliser Expansion With $600m Facility

AFC provides a $600 million facility to support Dangote’s fertiliser expansion and strengthen its partnership.

Africa Finance Corporation (AFC) has committed a $600 million facility to Greenview Fertiliser Corp., the fertiliser holding company of Dangote Group, as part of a $7 billion expansion programme aimed at tripling fertiliser production capacity in Nigeria and establishing a new manufacturing platform in Ethiopia.

According to a press release issued on Monday, the investment forms a cornerstone of a wider programme designed to increase urea fertiliser production in Nigeria from 3 million metric tonnes per annum to 9 million metric tonnes, while also adding a new 3 million metric tonnes per annum urea plant in Ethiopia. The project is expected to strengthen food security, improve agricultural productivity and reduce Africa’s dependence on imported fertiliser.

AFC said the financing builds on its long-standing relationship with Dangote Group, having previously served as Co-Coordinating Bank on a $3 billion syndicated loan for the Dangote Refinery and provided an earlier $300 million senior term loan to Dangote Industries Limited.

The corporation noted that the expansion comes as Africa faces growing food demand, population growth and pressure on agricultural systems, while remaining heavily reliant on imported fertiliser despite its vast natural gas reserves and extensive arable land.

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the financing as a significant step in the company’s growth plans.

“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.

“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.”

AFC President and Chief Executive Officer, Samaila Zubairu, said the project addresses a critical challenge facing the continent.

“The question before Africa is simple: how will we feed 2.5 billion people by 2050? Africa’s 1.5 billion people consume just 6 million tonnes of urea annually, compared to 40 million tonnes in India and 50 million tonnes in China, despite having similar-sized populations,” he said.

“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.”

AFC said the latest financing reflects its strategy of supporting infrastructure and industrial projects that underpin long-term economic growth, including investments in energy, transport, logistics, industrial processing and food security across the continent. The corporation added that the fertiliser expansion would help Africa increase domestic production of critical agricultural inputs while strengthening its export capacity in regional and international markets.