Bank pledges N$25 billion for Angolan fertiliser plant

The African Export-Import Bank (Afreximbank) and Amufert SA have signed terms for a US$1,4 billion (N$25 billion) facility to support the establishment of a fertiliser plant in Angola.

Afreximbank is arranging the required debt funding in its capacity as mandated lead arranger and is also supporting the equity raise as one of the financial advisers through its advisory and capital markets unit.

Other sponsors include the Grupo Opaia, a holding company based in Luanda, Angola, involved in civil construction services, solar energy technology, drinking water systems, hospitality and tourism, agriculture and finance.

The other sponsor is Sonangol Natural Gas (Sonagas).

The fertiliser plant, to be located in Soyo, a mineral-rich part of Angola with easy access to natural gas, energy, water and a commercial port, will serve to boost industrialisation, provide increased food security and position Angola as the food basket of the region.

In an ever evolving and often volatile world of trade, local fertiliser production will help mitigate shortages caused by supply chain disruptions and rising prices.

It will also reduce the huge foreign exchange expenditure that Angola is currently incurring from the importation of fertilisers.

Additionally, the plant is expected to create approximately 4 700 jobs, 3 500 during the construction phase and 1 200 when the plant is operational.

Afreximbank president and chairman of the board of directors Benedict Oramah, at the signing ceremony said: “As we witness the signing of the terms of the US$1,4 billion project finance facility with Amufert SA, I would like to thank the government of Angola, in particular, Angolan president João Lourenço, for the support provided to the project and his overall desire for resource-based industrialisation in Angola.”

He said the project was conceptualised in the wake of the Ukraine crisis, which brought about a shortage of grains and fertilisers in Africa, with the attendant implications for food security on the continent.

Oramah emphasised that the challenge of depending on traditional supply markets outside the continent for food security was evident for all to see.

“This is why projects like the one we are signing today, should be supported, not just in Angola, but across the continent. This is exactly why, at Afreximbank, we are fully committed to supporting the fertiliser plant,” he said.

Grupo Opaia chairperson Agostinho Kapaia said the project would not have come to life without the invaluable collaboration of the Grupo Opaia, Sonangol and the Afreximbank.

He expressed gratitude to Oramah for his strategic support which was crucial to the materialisation of the project.

“Partnering with Afreximbank not only facilitates our journey, but also reflects trust and a shared vision of a promising future for Africa’s development initiatives,” Kapaia added.

– Distributed by the APO Group on behalf of Afreximbank.