The Africa Finance Corporation (AFC) announced that it has provided a $600 million facility to help the Dangote Group triple fertilizer production in Nigeria and build a new plant in Ethiopia.
According to AFC, the funds will go to Greenview Fertilizer Corporation, Dangote’s fertilizer holding company. This financing will help the company increase urea output in Nigeria from 3 million to 9 million metric tons while adding an additional 3 million tons of capacity through the planned Ethiopia plant.
The Dangote Group has said that the fertilizer projects will cost up to $7 billion.
Africa imports most of its fertilizer, making the continent vulnerable to supply-chain disruptions such as those caused by the Iran conflict.
Samaila Zubairu, President and CEO of Africa Finance Corporation qouted as saying: “By supporting the development of the world’s largest fertilizer platform, AFC is helping build the foundation for Africa to feed itself, create productive jobs, and strengthen our economic sovereignty”.
The Lagos-based lender previously helped coordinate a $3 billion syndicated loan for the Dangote Refinery, Africa’s largest refinery, with a processing capacity of 650,000 barrels per day.
