Afreximbank, the African Export-Import Bank, to finance the development of a fertilizer plant in Angola

The African Export-Import Bank (Afreximbank) has announced its commitment to finance the development of a fertilizer plant in Soyo, Angola, with a substantial $1.4 billion funding facility. Serving as both the lead arranger and financial advisor, Afreximbank will support Ammonia and Urea Fertilizer’s (AMUFERT) initiative alongside the project’s sponsors, the Angolan conglomerate OPAIA Group and the state-owned Sonangol P&P Natural Gas (Sonagas).

The African Energy Chamber (AEC), a key advocate for the continent's energy sector, has expressed strong support for this project, recognizing it as a significant step towards achieving energy security and agricultural self-sufficiency in Africa. The AEC has praised Afreximbank’s vital role in structuring the financial framework of the project, acknowledging the significant contributions of both OPAIA Group and Sonagas. The expertise and resources of OPAIA Group are deemed essential for the plant’s successful implementation, while Sonagas is noted for providing crucial resources and technical support, reflecting a collaborative effort integral to the project’s fruition.

Angola currently imports fertilizers worth over $120 million annually to satisfy local demands. With the AMUFERT plant expected to begin production in early 2027, it aims to produce 3,870 tonnes of fertilizer daily, potentially reducing the need for imports significantly. This development is anticipated not only to bolster the country’s economy but also to enhance its food sovereignty.

The establishment of the AMUFERT plant is expected to bring multiple benefits, including job creation, technological advancements, and economic diversification. This project is particularly vital for Angola as it seeks to reduce its dependency on imported fertilizers, thereby supporting local agriculture, decreasing import costs, and providing farmers with steady access to high-quality fertilizers. Overall, this initiative is likely to strengthen the domestic agricultural sector, contribute to food security, and promote economic development by fostering job creation and technological innovation in the region.

NJ Ayuk, the Executive Chairman of the AEC, emphasized that Afreximbank’s investment in the AMUFERT plant represents a strategic and transformative endeavor for Angola. He highlighted the project’s role in addressing critical agricultural gaps and pointed out the essential interconnectedness of energy and sustainable agricultural development. The participation of OPAIA Group and Sonagas is expected to set new standards for industrial growth and economic resilience in Angola.