The African Finance Corporation will provide $600 million in financing to support new fertilizer projects being developed by Dangote Industries.
The funding agreement expands the long-standing relationship between the finance institution and the Dangote Group, one of Africa’s largest industrial conglomerates. The investment is expected to support the construction and expansion of fertilizer facilities aimed at meeting rising demand from African farmers and reducing dependence on imports.
The financing comes as governments across the continent seek to improve agricultural productivity amid growing concerns over food inflation, climate-related disruptions and supply chain vulnerabilities. Access to affordable fertilizer remains one of the biggest constraints facing African agriculture, with many countries relying heavily on imported supplies.
Dangote Industries already operates one of the world’s largest fertilizer plants near Lagos, with a production capacity of three million metric tonnes of urea annually. The facility has become a major supplier to both domestic and international markets, exporting fertilizer to countries across Africa, Europe, the Americas and Asia.
The new investment is expected to help expand production capacity and support additional fertilizer projects designed to address persistent supply shortages across the continent.
African Finance Corporation Chief Executive Officer Samaila Zubairu said the financing aligns with the institution’s mandate to support strategic industrial projects capable of transforming African economies. He noted that fertilizer production remains critical to improving agricultural yields and supporting long-term economic growth.
The investment also reflects growing confidence in large-scale industrial projects across Africa despite global economic uncertainty. Development finance institutions have increasingly focused on sectors considered essential to economic resilience, including agriculture, energy, transport and manufacturing.
For Dangote Industries, the financing represents another step in its broader strategy of building large-scale industrial assets across the continent. The group has invested billions of dollars in sectors ranging from cement and fertilizer to petrochemicals and oil refining, positioning itself as one of Africa’s most influential industrial investors.
Analysts say expanded fertilizer production could help shield African farmers from global supply disruptions and price volatility that have periodically affected agricultural markets in recent years. Increased local production may also help reduce foreign exchange pressures on countries that spend substantial amounts importing agricultural inputs.
The AFC financing underscores the growing role of African capital in supporting large infrastructure and industrial projects. As governments seek to accelerate economic transformation and strengthen food security, investments in fertilizer production are increasingly viewed as critical to achieving both agricultural and industrial development goals across the continent.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
