The Africa Finance Corporation (AFC) has signed a $600 million loan agreement with the Dangote Group to fund the expansion of its fertilizer production capacity – a deal experts say would significantly strengthen food security across Nigeria and the African continent.
According to a statement by the group on Monday, the loan facility extended to GreenView Fertilizer Corporation (Greenview), the Dangote Fertlizer Holding Company would finance the expansion of its urea fertilizer production capacity in Nigeria and the development of the plant in Ethiopia.
The investment forms part of Dangote Group’s broader US$7 billion fertilizer expansion programme, which is expected to increase Dangote Fertilizer’s production capacity in Nigeria from 3 million metric tonnes per annum (“MTPA”) to 9 MTPA, while also supporting the development of a new 3 MTPA urea fertilizer plant in Ethiopia.
Speaking on the deal, President of Dangote Group, Aliko Dangote says the expansion is expected to generate over $4 billion annually in export earnings within the next three years.
“What he’s actually given us this money for is a company whereby the next three years we’ll be able to have an export of over $4 billion worth of urea fertilizer, and I think it is a big contribution to the foreign exchange income of the country,” Dangote said.
He added that the group’s ambition to grow to $100 billion by 2030 was one it intended to pursue alongside partners like AFC. “We want to grow together, especially with African Finance Corporation among other notable institutions in Africa,” he said.
Commenting on the transaction, Samaila Zubairu, President & CEO of Africa Finance Corporation, said: “This transaction demonstrates AFC’s capital recycling model in action. Following the successful repayment of our earlier investment in Dangote Industries Limited, we are redeploying and doubling that capital into Dangote Group’s next phase of growth. By supporting the expansion of Dangote Fertilizer, AFC is backing a proven African industrial champion whose investments will strengthen food security, reduce import dependence, and create long-term economic value across the continent.”
The Dangote Fertilizer Plant currently plays a pivotal role in meeting domestic demand while also exporting to international markets, generating foreign exchange earnings for Nigeria.
With the planned expansion, the company aims to further consolidate its leadership in the global fertilizer market.
