The African Export-Import Bank (Afreximbank) is leading the debt financing for the construction of a US$2 billion fertilizer plant in Soyo, Angola, with the project’s four main contractors being China’s Wuhan Engineering Company, US-based KBR, Japan-based Toyo Engineering Corporation, and WeDO.

Afreximbank, the Cairo-based multilateral trade finance institution, will act as the project’s mandated lead arranger, providing, alongside partner financial institutions, US$1.4 billion in debt funding, while its advisory and capital markets department will facilitate additional equity fundraising.

KBR is a world leader in ammonia technology, and will provide a technology licence, proprietary engineering design, equipment and catalyst solutions for the ammonia plant.

The project’s sponsor is Amufert, a subsidiary of OPAIA Group, a Luanda-based conglomerate, which has signed an engineering, procurement and construction contract for the project. Construction of the plant is scheduled to begin in 2025, with operations expected by 2027.

The ammonia and urea fertilizer plant is regarded as transformative for the Angolan economy and advancing regional economic development. A high-profile signing ceremony was attended by senior officials from Afreximbank; the Angolan government, among them the minister of natural resources, minerals and petroleum, and the minister of agriculture; the president of the Sovereign Wealth Fund of Angola; and the CEO of Angolan gas company Sonangol.

With a production capacity of 4,000 metric tonnes per day, the Amufert plant will significantly reduce the country’s reliance on imported fertilizers. It will also contribute to Angola’s economic diversification by leveraging natural gas resources, thereby reducing reliance on oil revenues.

Additionally, the initiative will support farmers by ensuring a consistent supply of affordable, high-quality fertilizers, boosting agricultural productivity and enhancing food security. This will not only enhance Angola’s agricultural resilience but also position the country as a leader in fertilizer production across Africa.

Surplus production will enable Angola to become a key fertilizer exporter within Africa, fostering regional economic integration and promoting intra-African trade.

Oluranti Doherty, Afreximbank’s managing director for export development, says the bank “recognizes the importance of Amufert’s ammonia and urea production plant to regional and national food sovereignty, via the localization of fertilizer production in Angola”.