The Dangote Group has secured a $600m loan facility from the Africa Finance Corporation (AFC) to support a major expansion of its fertiliser business, a move expected to significantly boost Africa’s fertiliser production capacity, strengthen food security and generate more than $4bn annually in export earnings within the next three years.
The financing agreement, signed between AFC and GreenView Fertilizer Corporation, the holding company of Dangote Fertilizer Limited, will partly fund the expansion of the company’s fertiliser production capacity in Nigeria and the development of a new fertiliser plant in Ethiopia.
The investment forms a key component of Dangote Group’s broader $7bn fertiliser expansion programme, aimed at increasing the company’s production capacity in Nigeria from the current three million metric tonnes per annum (MTPA) to nine million MTPA, while simultaneously developing a new three-million-MTPA urea fertiliser plant in Ethiopia.
The expansion is expected to substantially increase fertiliser availability across Africa, reduce the continent’s dependence on imported fertiliser products, improve agricultural productivity and enhance food security at a time when many African countries are grappling with rising food costs and supply chain challenges.
Announcing the transaction, the company said the financing reflects AFC’s continued confidence in Dangote Group’s industrialisation strategy and its ability to deliver transformative projects across key sectors of the African economy.
The loan facility will be deployed towards the expansion of the Dangote Fertilizer Plant located in Ibeju-Lekki, Lagos State, one of the world’s largest granulated urea fertiliser complexes.
According to the company, the expansion will significantly increase production capacity, improve operational efficiencies and strengthen supply chains, ensuring a more reliable supply of high-quality fertiliser products to farmers across the continent.
“The expansion is expected to significantly scale up production capacity, enhance supply chain efficiency, and ensure the steady availability of high-quality fertilizers to farmers across Africa. It will also help reduce dependency on fertilizer imports, stabilize prices, and improve agricultural yields, thereby strengthening the continent’s food security framework,” the company stated.
President of Dangote Group, Aliko Dangote, described the financing as a strategic investment that would not only strengthen the company’s position in the global fertiliser market but also contribute significantly to Nigeria’s foreign exchange earnings.
Speaking on the projected impact of the expansion, Dangote said the company expects fertiliser exports to generate more than $4 billion annually within the next three years.
“What AFC has actually given us this money for is a company where, by the next three years, we will be able to have exports of over $4 billion worth of urea fertilizer. I think this will be a major contribution to the foreign exchange income of the country,” he said.
Dangote further reaffirmed the group’s long-term growth ambitions, noting that its target of becoming a $100bn business by 2030 is anchored on partnerships with African institutions and the broader development of the continent’s industrial ecosystem.
“When we say that we want to grow our group to $100bn by 2030, it does not mean that we want to grow alone. We want to grow together, especially with Africa Finance Corporation and other notable institutions across Africa,” he added.
For AFC, the transaction represents a continuation of its strategy of supporting large-scale African industrial projects capable of generating long-term economic value.
Commenting on the deal, AFC President and Chief Executive Officer, Samaila Zubairu, said the investment demonstrates the corporation’s commitment to recycling capital into transformative projects that promote industrialisation and economic development across the continent.
“This transaction demonstrates AFC’s capital recycling model in action. 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,” Zubairu said.
“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.”
Industry analysts say the investment comes at a critical time when African countries are seeking to improve agricultural output and reduce vulnerability to global supply disruptions that have contributed to fertiliser shortages and higher food prices in recent years.
The Dangote Fertilizer Plant currently serves both domestic and international markets and has become one of Nigeria’s major non-oil export earners. The facility plays an important role in meeting local fertiliser demand while supplying several countries across Africa, Europe and the Americas.
With the planned expansion in Nigeria and Ethiopia, Dangote Group aims to consolidate its position as one of the world’s leading fertiliser producers while advancing Africa’s quest for agricultural self-sufficiency, food security and industrial development.
