AFC approves $600m facility for Dangote fertiliser expansion
Dangote aims to triple fertiliser production in Nigeria and establish a new manufacturing plant in Ethiopia.
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The Africa Finance Corporation (AFC) has approved a $600 million facility for Greenview Fertiliser Corp., the fertiliser holding company of the Dangote Group. The funds will support Dangote’s $7 billion expansion programme, which aims to triple fertiliser production in Nigeria and establish a new manufacturing plant in Ethiopia.
This transaction follows AFC’s previous investments with the Dangote Group. AFC recently received full repayment on a $300 million senior term loan used to fund the Dangote Refinery.
Dangote’s expansion programme is projected to increase urea fertiliser production capacity in Nigeria from 3 million tonnes per annum to 9 million tonnes, while adding a new 3 million tonnes urea fertiliser plant in Ethiopia.
Commenting on the transaction, Aliko Dangote, president and chief executive of Dangote Industries Limited, said: “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. 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.”
Samaila Zubairu, president and CEO of AFC, said: “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. 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 fertiliser production. It is evidence of the Africa we are building.”
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