Africa Finance Corporation (AFC), the continent's infrastructure-focused development finance institution, has committed $600mn to support a $7bn fertiliser expansion programme by Dangote Group that aims to triple production capacity in Nigeria and establish a major new manufacturing facility in Ethiopia.

The financing will be provided to Greenview Fertiliser Corp, Dangote's fertiliser holding company, and forms part of a broader investment programme designed to strengthen Africa's agricultural input supply chain and reduce dependence on imported fertilisers.

Under the expansion plan, Dangote intends to increase urea production capacity in Nigeria from 3mn metric tonnes per annum (MTPA) to 9 MTPA while simultaneously developing a new 3 MTPA urea fertiliser plant in Ethiopia. If completed, the project would create one of the world's largest fertiliser production platforms.

The investment comes as African governments seek to improve food security and agricultural productivity amid rapid population growth, climate-related pressures and continued dependence on imported fertilisers. Despite possessing substantial natural-gas reserves and around a quarter of the world's uncultivated arable land, Africa remains a net importer of fertiliser products.

AFC said the expansion would strengthen regional food security, support higher agricultural yields and enhance Africa's position in international fertiliser markets.

The transaction deepens AFC's long-standing relationship with Dangote Group. AFC previously served as a co-coordinating bank on the $3bn syndicated financing for Dangote Petroleum Refinery and recently received full repayment of a $300mn senior loan that helped support development of the refinery.

The institution said the latest investment demonstrates its model of providing early-stage capital to strategic projects and redeploying capital once assets become operational and cash-generative.

"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, President and CEO 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."

AFC President and Chief Executive Samaila Zubairu said the project addresses one of Africa's most pressing long-term development challenges.

"The question before Africa is simple: how will we feed 2.5bn people by 2050?" Zubairu said. "Africa's 1.5bn people consume just 6mn tonnes of urea annually, compared to 40mn tonnes in India and 50mn tonnes in China, despite having similar-sized populations. Closing this productivity gap is essential to Africa's food security."

Dangote Fertilizer commenced operations in 2022 and is currently one of Africa's largest granulated urea producers. The facility is integrated with Nigeria's natural-gas sector and exports fertiliser to markets across Africa, Europe and the Americas.

The latest financing reflects AFC's broader investment strategy focused on infrastructure and industrial assets that support long-term economic growth. The institution has invested across sectors including transport, power generation, logistics, industrial processing and energy infrastructure.

If completed as planned, the expansion would significantly increase Africa's fertiliser production capacity at a time when governments across the continent are seeking to boost agricultural output, reduce import dependence and strengthen resilience against disruptions in global commodity markets.

Dangote Group is privately held. Related listed companies within the Dangote group include Dangote Cement (NGX:DANGCEM) and Dangote Sugar Refinery (NGX:DANGSUGAR). 

The Nigerian Exchange Group (NGX Group) is positioning the planned initial public offering of Dangote Refinery and Petrochemicals FZE in Q3 2006, as a pan-African investment opportunity, aiming to attract capital from across the continent and international markets.

The company, whose Dangote Petroleum Refinery this month increased crude processing capacity to 700,000 barrels per day (bpd), exceeding its official nameplate capacity of 650,000 bpd, plans to list shares in the third quarter of 2026 at a valuation of between $40bn and $50bn, with the company proposing to sell a 5%-10% stake in the business.