LAGOS — In a landmark move to fortify Africa’s food security and industrial autonomy, the Africa Finance Corporation (AFC) has committed a $600 million loan facility to support the Dangote Group’s massive $7 billion fertiliser expansion programme.
The financing agreement, extended to Greenview Fertiliser Corporation, the holding company for Dangote’s fertiliser operations, marks one of the most significant recent funding commitments to the continent’s agricultural inputs sector. The capital will be deployed to aggressively scale up urea production across West and East Africa, positioning the company to become the world’s largest urea producer.
Tripling Domestic Capacity and Expanding into Ethiopia
The $7 billion expansion strategy is anchored on a dual-market approach designed to eliminate Africa’s reliance on imported fertilisers.
In Nigeria, the funds will be used to triple the current production capacity at the Dangote Fertiliser Plant in Ibeju-Lekki, Lagos State. Output is projected to jump from 3 million metric tonnes per annum (MTPA) to 9 million MTPA.
Simultaneously, the group will develop a new 3 million MTPA urea fertiliser plant in Ethiopia. Once completed, the combined 12 million MTPA platform will create an unprecedented domestic supply base, mitigating the vulnerability of African farmers to global supply chain disruptions and volatile commodity prices.
A $4 Billion Boost to Nigeria’s Foreign Exchange
Beyond food security, the expansion carries massive macroeconomic implications for Nigeria. Since commencing commercial operations in 2022, the Ibeju-Lekki facility has actively supplied domestic farmers while exporting to markets across the Americas, Europe, and other African nations.
Speaking on the strategic impact of the deal, Aliko Dangote, President of the Dangote Group, emphasized the immense foreign exchange potential the expanded capacity will unlock.
“What he’s actually given us this money for is a company where by 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 stated. “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’s Capital Recycling Model
For the Africa Finance Corporation, the $600 million commitment is a textbook execution of its capital recycling strategy. The AFC had previously acted as a co-coordinating bank on a $3 billion syndicated loan for the Dangote Refinery and provided early-stage risk capital. Following the full repayment of a foundational $300 million senior term loan to Dangote Industries Limited, the AFC is now redeploying that capital back into the group’s next growth phase.
Samaila Zubairu, President and CEO of the AFC, noted that the investment targets the continent’s most critical productivity gaps.
“This transaction demonstrates AFC’s capital recycling model in action,” Zubairu explained. “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.”
Despite possessing immense natural gas reserves and nearly 25% of the world’s uncultivated arable land, Africa remains heavily reliant on imported fertilisers. By executing this cross-border expansion, the Dangote-AFC partnership is laying the industrial infrastructure required for the continent to finally achieve agricultural sovereignty.
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