Afreximbank Earmarks $1.4Bn To Support Establishment Of Fertilizer Plant In Angola
African Export-Import Bank (Afreximbank) and Amufert SA announced that they have signed terms for a USD 1.4 Billion facility to support the establishment of a fertilizer plant in Angola.
Afreximbank is arranging the required debt funding in its capacity as Mandated Lead Arranger and is also supporting the equity raise as one of the Financial Advisers through its Advisory and Capital Markets unit. Other strategic sponsors of the transaction are the OPAIA Group and Sonangol Natural Gas (Sonagas).
The fertilizer plant which will be located in Soyo, a mineral-rich part of Angola with easy access to natural gas, energy, water and a commercial port, will serve to boost industrialization, provide increased food security and position Angola as the food basket of the region.
In an ever evolving and often volatile world of trade, local fertilizer production will help mitigate shortages caused by supply chain disruptions and rising prices. It will also reduce the huge foreign exchange expenditure that Angola is currently incurring from the importation of fertilizers. Additionally, the plant is expected to create approximately 4,700 jobs, 3,500 of which will be during the construction phase and 1,200 jobs when the plant is operational.
While speaking at the signing ceremony, Prof. Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, said: “As we witness the signing of the terms of the USD1.4 billion Project Finance Facility with Amufert SA, I would like to thank the Government of Angola, in particular, His Excellency Joao Lourenco, President of the Republic of Angola, for the support provided to the Project and his overall desire for resource-based industrialization in Angola.”
He added: “This Project was conceptualized in the wake of the Ukraine crisis which brought about a shortage of grains and fertilizers in Africa, with the attendant implications for food security on the continent. The challenge of depending on traditional supply markets outside the continent for our food security needs was laid bare for all to see. This is why projects like the one we are signing today, should be supported not just in Angola but across the continent. This is exactly why, at Afreximbank, we are fully committed to supporting the fertilizer plant.”
Mr. Agostinho Kapaia, the Chairman of OPAIA Group said: “This project would not have come to life without the invaluable collaboration between the OPAIA Group, Sonangol and the African Export and Import Bank (Afreximbank), to whom we express our sincere gratitude, in the person of His Excellency Professor Oramah. Your strategic and unconditional support has been crucial to the materialization of this project.”
He added: “Partnering with Afreximbank not only facilitates our journey but also reflects trust and a shared vision of a promising future for Africa’s development initiatives.”
