Africa’s push for food security has received a major boost as the Dangote Group and the Africa Finance Corporation have signed a $600 million loan agreement to expand fertiliser production in Nigeria and Ethiopia.
The financing, secured by GreenView Fertiliser Corporation, the holding company of Dangote Fertiliser, forms part of Dangote Group’s wider $7 billion fertiliser expansion programme aimed at significantly increasing Africa’s fertiliser supply and reducing dependence on imports.
Under the plan, Dangote Fertiliser will expand its Nigerian production capacity from three million metric tonnes per annum to nine million metric tonnes per annum. The programme also includes the development of a new three-million-metric-tonne-per-annum urea fertiliser plant in Ethiopia.
The investment will support the expansion of the Dangote Fertiliser Plant in Ibeju-Lekki, Lagos State, one of the world’s largest granulated urea fertiliser complexes. The company said the project would increase output, improve supply-chain efficiency and ensure a more reliable supply of fertiliser to farmers across Africa.
Beyond boosting production, the expansion is expected to strengthen regional food security, improve agricultural productivity, stabilise fertiliser prices and reduce the continent’s reliance on imported products.
Dangote Group President, Aliko Dangote, said the enlarged operations could generate more than $4 billion annually in urea fertiliser exports within the next three years.
“By the next three years, we’ll be able to have an export of over $4bn worth of urea fertiliser, and I think it is a big contribution to the foreign exchange income of the country,” he said.
Dangote added that the group’s ambition to grow into a $100 billion business by 2030 would be driven through partnerships with African institutions, including AFC.
Commenting on the transaction, AFC President and Chief Executive Officer, Samaila Zubairu, described the deal as an example of the corporation’s capital recycling strategy.
“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,” he said.
According to Zubairu, the investment will support a proven African industrial player while creating long-term economic value, strengthening food security and reducing import dependence across the continent.
The Dangote Fertiliser Plant already serves both domestic and international markets, generating foreign exchange earnings for Nigeria. With the latest expansion, the company is seeking to consolidate its position in the global fertiliser industry while deepening Africa’s agricultural self-sufficiency.
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