The Africa Finance Corporation has approved a $600 million financing facility for the Dangote Group to support a major fertiliser expansion programme that will triple production capacity in Nigeria and establish a new manufacturing plant in Ethiopia, as reported by CNBC Africa. The investment, announced on Monday, represents one of the largest financing commitments to Africa’s fertiliser industry in recent years and is aimed at strengthening food security, boosting agricultural productivity, and reducing the continent’s reliance on imported fertiliser.
The facility has been extended to Greenview Fertiliser Corporation, Dangote’s fertiliser holding company, and forms part of a broader $7 billion expansion programme. According to AFC and Dangote Group, the project will increase urea production capacity at the company’s Ibeju-Lekki plant in Lagos from 3 million metric tonnes per annum to 9 million metric tonnes, while also supporting the development of a new 3 million metric tonne fertiliser plant in Ethiopia. The Ethiopian project builds on an earlier agreement between Dangote Group and the Ethiopian government to create one of the continent’s largest fertiliser manufacturing facilities.
Speaking on the transaction, Aliko Dangote said the expansion would strengthen Africa’s industrial base while supporting agricultural growth across the continent. AFC President and Chief Executive Officer Samaila Zubairu described the deal as a demonstration of the institution’s commitment to backing transformative African industrial projects. AFC noted that the financing follows the successful repayment of its earlier investment in Dangote Industries and reflects confidence in the group’s long-term growth strategy.
The expansion is expected to have significant economic implications for Africa’s agricultural sector. Industry estimates show that the continent still imports a substantial share of its fertiliser requirements, exposing farmers to supply disruptions and price volatility. Analysts say increasing domestic production capacity could improve fertiliser availability, enhance crop yields, strengthen food security, and generate billions of dollars in export earnings. If completed as planned, the combined Nigerian and Ethiopian facilities would position Dangote Group among the world’s largest urea producers while reinforcing Africa’s ambition to build self-sufficient agricultural and industrial value chains.
