AfDB backs South Africa’s Nyanza Light Metals
$75 million facility to fund titanium dioxide pigment plant.
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The African Development Bank (AfDB) has approved $75 million in financing for South Africa-based Nyanza Light Metals to support local processing of Africa’s titanium resources
Titanium dioxide is a crucial pigment used across numerous industries, including paints and coatings, food processing, cosmetics, and medical applications. Notwithstanding this demand, manufacturers in South Africa and across the region rely almost entirely on costly imports. Nyanza’s project will change this by producing titanium dioxide locally, contributing to import substitution and positioning Africa within the global titanium dioxide value chain.
The AfDB’s $75 million financing package includes $25 million from the Africa Growing Together Fund, a co-financing initiative with the People’s Bank of China. The funds will go towards developing, constructing and operating a titanium dioxide pigment plant with an annual capacity of 80,000 tonnes, along with related infrastructure, in the Richards Bay Industrial Development Zone.
The bank’s contribution forms part of a syndicated funding package arranged by the Africa Finance Corporation and the African Export-Import Bank, serving as initial mandated lead arrangers and bookrunners.
Commenting on the project, Solomon Quaynor, AfDB’s vice president for private sector, infrastructure and industrialisation, said: “This investment reflects the African Development Bank’s commitment to driving Africa’s industrial transformation and changing Africa’s narrative from a continent that is heavily dependent on raw material exports to one that is globally recognised as a prominent player in domestic value-addition to its natural resources. By supporting Nyanza to invest in infrastructure and local natural resources beneficiation, we are contributing to changing Africa’s old paradigm of exporting low-value raw materials while relying heavily on importing finished products; we are building an industrial economy that will create inclusive opportunities for millions of people across the continent.”
Nyanza president and CEO, Donovan Chimhandamba, said: “AfDB’s approval marks a pivotal moment, not just for Nyanza, but for Africa’s industrial future. AfDB brings more than funding; it brings credibility, strategic partnership, and a long-term commitment to Africa’s transformation. This endorsement affirms our mission to lead mineral beneficiation and positions Nyanza as a driver of inclusive industrialisation.”
Chimhandamba added, “Africa has long exported raw minerals, only to import back high-value finished products made from those same resources, at a premium. This cycle has constrained industrial growth and limited the continent’s ability to fully benefit from its natural wealth. With AfDB’s support, we are changing that by building a world-class titanium beneficiation complex to process African minerals locally for global markets. It is about reclaiming value, creating jobs, and building an industrial base that empowers youth, women, and entrepreneurs.”
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