AFC backs US$7bn Dangote fertiliser expansion to strengthen Africa’s food security

Africa Finance Corporation (AFC) has committed support to a US$7 billion fertiliser expansion programme by the Dangote Group aimed at tripling production capacity in Nigeria and establishing a new manufacturing platform in Ethiopia.

As part of the initiative, AFC is providing a US$600 million facility to Greenview Fertiliser Corp. (Greenview), Dangote Group’s fertiliser holding company, further deepening the corporation’s longstanding partnership with the conglomerate on major industrial projects across the continent.

The latest transaction builds on AFC’s previous involvement in the development of the Dangote Refinery. AFC served as a Co-Coordinating Bank on the US$3 billion syndicated loan for the refinery and recently received full repayment of its initial US$300 million senior term loan to Dangote Industries Limited, which supported the project’s early development.

According to AFC, the redeployment of capital at twice the earlier amount reflects its strategy of providing early-stage risk capital before reinvesting in new transformative projects once existing assets become stable and cash-generative.

The fertiliser expansion comes amid growing concerns over food security, rising populations, climate pressures and continued dependence on imported agricultural inputs despite Africa’s vast natural resources.

Although the continent possesses some of the world’s largest natural gas reserves and nearly a quarter of its uncultivated arable land, it remains heavily reliant on imported fertiliser, making increased local production critical to agricultural resilience and productivity.

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Under the expansion programme, Dangote plans to increase urea fertiliser production capacity in Nigeria from 3 million metric tonnes per annum (MTPA) to 9 MTPA, while developing a new 3 MTPA urea fertiliser plant in Ethiopia.

The project is expected to strengthen regional food security, improve agricultural productivity, reduce dependence on imported fertiliser and reinforce Africa’s role as a supplier to global markets.

Commenting on the development, President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the investment as another milestone in the group’s relationship with AFC.

“This investment marks another important milestone in our long-standing partnership with AFC as we embark on the next phase of Dangote Fertilizer’s growth. 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 has consistently supported Dangote Group at critical stages of our growth, and its renewed commitment reflects confidence in our vision to build globally competitive African industrial platforms,” Dangote said.

President and Chief Executive Officer of AFC, Samaila Zubairu, said the investment addresses one of Africa’s biggest long-term challenges.

“The question before Africa is simple: how will we feed 2.5 billion people by 2050? Africa’s 1.5 billion people consume just 6 million tonnes of urea annually, compared to 40 million tonnes in India and 50 million tonnes in China, despite having similar-sized populations.

“Closing this productivity gap is essential to Africa’s food security. By supporting the development of the world’s largest fertiliser platform, AFC is helping build the foundation for Africa to feed itself, create productive jobs and strengthen our economic sovereignty.

“This is not just an investment in fertilizer production. It is evidence of the Africa we are building,” he said.

AFC noted that it has played a catalytic role in several phases of Dangote Group’s industrial expansion, including partnering with Access Bank in 2024 to provide the first working capital facility to Dangote Petroleum Refinery and Petrochemicals FZE to support crude procurement during commissioning and early production.

The corporation said the latest financing aligns with its broader strategy of supporting investments that strengthen the systems underpinning long-term economic growth, including energy, transport, logistics, industrial processing and food security.

It added that alongside investments in strategic transport corridors, ports, power generation and industrial platforms, AFC remains committed to projects that enhance Africa’s ability to produce, process and distribute critical goods domestically while expanding exports to regional and international markets.