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.

L-R: Mr. Agostinho Kapaia, Chairman of Opaia Group and Mr. Humphrey Nwugo, Regional Chief Operating Officer, Afreximbank Southern African region

Afreximbank and Amufert SA have finalized terms for a USD 1.4 Billion facility to establish a fertilizer plant in Angola. Afreximbank is facilitating the debt funding as Mandated Lead Arranger and is assisting in the equity raise as one of the Financial Advisers. The OPAIA Group and Sonangol Natural Gas (Sonagas) are also key sponsors of the project.

The fertilizer plant, to be situated in Soyo, an area abundant in minerals in Angola with convenient access to natural gas, energy, water, and a commercial port, aims to enhance industrialization, improve food security, and position Angola as the region's food hub.

In a world of trade that is constantly changing and sometimes unstable, local fertilizer production will help alleviate shortages due to disruptions in the supply chain and escalating prices. It will also decrease Angola's significant foreign exchange spending on imported fertilizers. Moreover, the plant is anticipated to generate around 4,700 jobs, with 3,500 during construction and 1,200 once operational.

During the signing event, Prof. Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, expressed gratitude to the Government of Angola, particularly His Excellency Joao Lourenco, President of the Republic of Angola, for their support of the project and commitment to resource-based industrialization in Angola.

He added that "the idea for this Project arose in response to the Ukraine crisis, which resulted in a scarcity of grains and fertilizers in Africa, impacting food security on the continent. Relying on traditional supply markets outside of Africa for our food security needs was revealed as a challenge. This is why projects like the one being signed today should receive support not only in Angola but throughout the continent. This is precisely why, at Afreximbank, we are wholeheartedly dedicated to backing the fertilizer plant."

On his part, Mr. Agostinho Kapaia, Chairman of the OPAIA Group, stated, “The realization of this project would not have been possible without the essential collaboration among the OPAIA Group, Sonangol, and the African Export and Import Bank (Afreximbank). We extend our heartfelt appreciation to His Excellency Professor Oramah for his invaluable support. Your strategic and unwavering assistance has been pivotal in bringing this project to fruition.” 

He further remarked, “Our partnership with Afreximbank not only enhances our progress but also signifies a mutual trust and a collective vision for a prosperous future in Africa's development efforts.”