AFC Commits $600m to Dangote in Drive to Build World’s Largest Fertiliser Platform

Africa Finance Corporation (AFC) has approved a $600 million facility to support a $7 billion fertiliser expansion programme by Dangote Group, aimed at tripling production capacity in Nigeria and establishing a major new manufacturing platform in Ethiopia.

The funding, provided to Greenview Fertiliser Corp., Dangote’s fertiliser holding company, marks a cornerstone commitment to a plan that will increase urea fertiliser production capacity in Nigeria from 3 million metric tonnes per annum (MTPA) to 9 MTPA, while adding a new 3 MTPA urea plant in Ethiopia, according to a statement on Monday.

The expansion is expected to boost regional food security, raise agricultural productivity, cut reliance on imported fertiliser and reinforce Africa’s position as a global supplier.

The transaction deepens AFC’s long-running partnership with Dangote Group across some of Africa’s largest industrial projects. AFC served as Co-Coordinating Bank on a $3 billion syndicated loan for the Dangote Refinery and recently received full repayment of its $300 million senior term loan to Dangote Industries Limited, which helped move the refinery from concept to operation. AFC is now redeploying double that amount into Dangote Group, in line with its model of providing early-stage risk capital and recycling funds into new transformative projects once assets become cash generative.

“The investment marks another important milestone in our long-standing partnership with AFC as we embark on the next phase of Dangote Fertilizer’s growth,” said Aliko Dangote, President and Chief Executive of Dangote Industries Limited. “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.”

Samaila Zubairu, president and CEO of AFC, framed the deal in the context of demographic and food security pressures. “The question before Africa is simple: how will we feed 2.5 billion people by 2050?” he said. “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.”

The investment comes amid global supply chain disruptions and commodity market volatility that have highlighted the risks of depending on imported agricultural inputs. This is despite Africa holding some of the world’s largest natural gas reserves and around a quarter of its uncultivated arable land.

AFC has played a catalytic role across multiple phases of Dangote Group’s industrial growth. In 2024, it partnered with Access Bank to provide Dangote Petroleum Refinery and Petrochemicals’ first working capital facility, supporting crude procurement for commissioning and initial production.

The latest financing underlines AFC’s strategy of investing in core systems that underpin long-term economic growth, including energy, transport, logistics, industrial processing and food security. Alongside funding strategic transport corridors, ports, power generation and industrial platforms, AFC says it will continue to back projects that expand Africa’s capacity to produce, process and distribute critical goods domestically, while increasing exports to regional and international markets.