Afreximbank approves $1.3 billion for Angola fertiliser plant
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Afreximbank has approved a $1.3 billion loan to support a $2 billion ammonia and urea plant in Angola, a project intended to cut fertiliser imports, leverage domestic gas resources, and position the country as a regional exporter—developments with implications for agricultural inputs, trade balances, and industrial diversification.
Angola’s Minister of Mineral Resources, Petroleum, and Gas, Diamantino Pedro Azevedo, said the African Export-Import Bank approved around $1.3 billion in financing for the project, a joint venture between state-owned Sonagas and the OPAIA Group. He made the announcement on Friday during a visit to Botswana.
The facility will produce ammonia and urea to reduce Angola’s reliance on imported fertilisers, which currently exceed $120 million annually. Authorities frame the project as a cornerstone of economic diversification, using natural gas as feedstock to expand downstream industrial capacity beyond oil. Surplus output is expected to be exported within Africa to strengthen regional supply chains and support intra-African trade.
For Angola, domestic fertiliser production could lower agricultural input costs, reduce the import bill, and improve foreign exchange dynamics, while creating an export stream aligned with regional demand under the AfCFTA. The Afreximbank commitment helps anchor the project’s capital structure but leaves approximately $700 million to be secured via equity or additional debt, highlighting the need for timely financial close.
For investors and contractors, the deal signals a pipeline opportunity across project finance, EPC services, gas supply, logistics, and port infrastructure. Key risks include feedstock security, construction execution, cost escalation, market pricing for urea, and regulatory approvals. If delivered on schedule, the plant could enhance Angola’s non-oil GDP contribution, support agricultural productivity in Southern and Central Africa, and deepen regional trade integration.
Afreximbank’s financing advances Angola’s $2 billion fertiliser project toward execution, with remaining funding and delivery milestones in focus. Successful completion would reduce import dependence, bolster diversification, and potentially establish Angola as a net fertiliser exporter within Africa.
