For decades, Africa has exported raw resources while importing many of the products needed to support its own development. A new US$7 billion fertiliser expansion programme led by Dangote Group and supported by Africa Finance Corporation (AFC) seeks to change that equation by expanding local fertiliser production, strengthening agricultural productivity and building greater self-sufficiency across the continent.
The initiative will significantly increase fertiliser production capacity in Nigeria while establishing a major manufacturing facility in Ethiopia. The project is expected to strengthen food security, support farmers, reduce dependence on imported fertiliser and create productive jobs across the continent.
As part of the programme, AFC is providing a US$600 million facility to Greenview Fertiliser Corp., Dangote Group’s fertiliser holding company. The financing further strengthens a long-standing partnership between AFC and Dangote Group, which has collaborated on some of Africa’s most significant industrial projects, including the Dangote Refinery.
The investment comes at a time when food security has become an increasingly important priority for African governments and businesses. Rapid population growth, rising demand for food and growing pressure on agricultural systems have highlighted the need for stronger local production capacity. Recent disruptions to global supply chains have also exposed the risks associated with relying heavily on imported agricultural inputs.
Despite possessing some of the world’s largest natural gas reserves and around a quarter of the world’s uncultivated arable land, Africa remains heavily dependent on imported fertiliser. Industry leaders say expanding domestic production is critical to improving agricultural productivity and building more resilient food systems.
Expanding Production Capacity Across Africa
Under the expansion programme, Dangote plans to increase its urea fertiliser production capacity in Nigeria from 3 million metric tonnes per annum to 9 million metric tonnes per annum. The company will also establish a new 3 million metric tonne per annum urea fertiliser plant in Ethiopia.
The increased production is expected to improve access to fertiliser for farmers across Africa, helping boost crop yields and support food production. It will also strengthen the continent’s position as a supplier to regional and international markets while creating additional value from Africa’s natural resources.
Commenting on the investment, Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, said the project represents an important milestone in the company’s growth journey.
“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,” he said.
Dangote noted that expanding fertiliser production in Nigeria and developing a new facility in Ethiopia would “strengthen Africa’s food security, support agricultural productivity and deepen the continent’s industrial base.”
He added that AFC has supported the group at key stages of its development and that the institution’s continued backing reflects confidence in Dangote Group’s vision of building globally competitive industrial platforms on the continent.
Supporting Long-Term Economic Growth
For AFC, the financing reflects its broader strategy of investing in projects that strengthen the foundations of long-term economic growth. The institution continues to focus on sectors such as energy, transport, logistics, industrial processing and food security, which are considered critical to Africa’s development.
Samaila Zubairu, President and Chief Executive Officer of AFC, said the continent must significantly improve agricultural productivity if it is to meet future food demand.
“The question before Africa is simple: how will we feed 2.5 billion people by 2050?” he said.
Zubairu noted that Africa’s population of approximately 1.5 billion people currently consumes only 6 million tonnes of urea annually, compared to 40 million tonnes in India and 50 million tonnes in China despite having comparable population sizes.
“Closing this productivity gap is essential to Africa’s food security,” he said.
According to Zubairu, AFC’s support for what is expected to become the world’s largest fertiliser platform extends beyond industrial development.
“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.”
The latest financing also reflects AFC’s approach to supporting transformative projects through early-stage capital before redeploying resources into new development opportunities once projects reach stable operations. The corporation previously served as Co-Coordinating Bank on the US$3 billion syndicated loan for the Dangote Refinery and recently received full repayment of its foundational US$300 million senior term loan to Dangote Industries Limited.
Since its establishment in 2007, AFC has invested more than US$19 billion across 36 African countries and now counts 48 member countries. Through investments in infrastructure and industrial projects, the institution continues to support efforts to increase Africa’s capacity to produce, process and distribute critical goods while expanding exports to regional and international markets.
