With AFC’s backing, the expansion aims to reduce import dependence and bolster food security across the continent

As Africa grapples with rising food demand, climate pressures and persistent dependence on imported agricultural inputs, the Africa Finance Corporation (AFC) has committed to supporting a sweeping $7 billion fertiliser expansion programme led by the Dangote Group, a move aimed at significantly boosting the continent’s agricultural self-sufficiency.

At the centre of the expansion is a $600 million financing facility from AFC to Greenview Fertiliser Corp., Dangote’s fertiliser holding company. The investment will help fund plans to triple fertiliser production capacity in Nigeria while establishing a major new manufacturing facility in Ethiopia, creating what supporters describe as a transformative platform for African food security.

The transaction deepens a long-standing relationship between AFC and Dangote Group, whose collaboration has previously included financing support for the landmark Dangote Refinery. AFC was a co-coordinating bank on the refinery’s $3 billion syndicated loan and recently received full repayment of its original $300 million senior term facility that helped bring the project to fruition.

The new commitment reflects AFC’s strategy of deploying early-stage risk capital into large-scale industrial projects and recycling capital into new ventures once assets mature into stable, revenue-generating businesses.

Building Africa’s Fertiliser Capacity

Africa faces a paradox. Despite possessing vast natural gas reserves and nearly a quarter of the world’s uncultivated arable land, the continent remains heavily reliant on imported fertilisers, exposing farmers to global supply-chain disruptions and volatile commodity markets.

The Dangote expansion seeks to address that vulnerability at scale.

Under the programme, urea fertiliser production capacity in Nigeria will increase from 3 million metric tonnes annually to 9 million metric tonnes. A new 3 million metric tonne fertiliser plant is also planned in Ethiopia, creating a significant manufacturing hub in East Africa. The expansion is expected to support agricultural productivity, improve fertiliser availability, reduce import dependence and position Africa as a larger participant in global fertiliser markets.

“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,” said Aliko Dangote.

“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. AFC has consistently supported Dangote Group at critical stages of our growth, and its renewed commitment reflects confidence in our vision to build globally competitive African industrial platforms.”

A Food Security Imperative

The investment comes at a time when policymakers and development institutions are increasingly focused on Africa’s ability to feed a rapidly growing population. According to AFC, Africa’s population is expected to reach 2.5 billion by 2050, intensifying pressure on agricultural systems already challenged by climate variability and low productivity.

Despite having a population comparable to India and China, Africa consumes significantly less fertiliser. The continent’s 1.5 billion people currently use approximately 6 million tonnes of urea annually, compared with roughly 40 million tonnes in India and 50 million tonnes in China. For AFC, closing that productivity gap is central to the continent’s economic future. “The question before Africa is simple: how will we feed 2.5 billion people by 2050?” said Samaila Zubairu.

“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 fertiliser production. It is evidence of the Africa we are building.”

Expanding an Industrial Partnership

The latest financing further strengthens AFC’s position as one of the continent’s most active infrastructure and industrial investors. Beyond fertilisers, AFC has supported multiple phases of Dangote Group’s industrial expansion, including partnering with Access Bank in 2024 to provide the first working-capital facility for Dangote Petroleum Refinery and Petrochemicals, helping finance crude procurement during commissioning and initial production.

The corporation has increasingly focused on investments that address critical development bottlenecks across energy, logistics, transportation, industrial processing and food systems.

Strategic Bet on Africa’s Agricultural Future

For both AFC and Dangote, the fertiliser expansion represents more than an industrial project. It is a strategic bet on Africa’s long-term ability to create resilient agricultural value chains and reduce dependence on imported inputs. As global supply chains face recurring disruptions and governments prioritise food security, the continent’s largest industrial groups are increasingly investing in domestic manufacturing capacity that can support agricultural transformation.

If executed as planned, the expansion could reshape Africa’s fertiliser landscape, strengthen regional food systems and establish Nigeria and Ethiopia as key production hubs serving both African and international markets. In a world where food security is increasingly intertwined with industrial capacity, the AFC-Dangote partnership is positioning fertiliser production as a cornerstone of Africa’s broader economic and agricultural ambitions.