The joint venture Amufert is spearheading a project set to bolster industrialization, enhance food security, and position Angola as a major agricultural hub in the region.
Loan Agreement and Project Goals
Afreximbank has agreed to provide a $1.4 billion loan to the joint venture Amufert SA for the establishment of a fertilizer plant in Angola. This announcement was made on Friday, August 2, 2024.
As the lead arranger, the African Export-Import Bank is tasked with raising the necessary funds for this ammonia and urea production facility located in the Soyo municipality of Angola. The project is designed to meet local fertilizer demand and cater to international markets.
Financial Contributions and Partnerships
The financial backing from Afreximbank will be supplemented by investments from the private investment group Opaia and the state-owned oil company Sonangol, both founding members of Amufert.
“The partnership with Afreximbank not only facilitates our venture but also reflects shared confidence and a common vision for a promising future for Africa’s development initiatives,” remarked Agostinho Kapaia, president of Opaia Group. He emphasized the project’s benefits, particularly in improving agricultural practices and increasing local food production.
Project Timeline
The fertilizer production project, initially announced in October 2023, officially commenced in May 2024.
In Africa, “over the past 10 years, fertilizer consumption has maintained an annual growth rate of approximately 8%, and the average fertilizer use in sub-Saharan Africa in 2021 increased to 18 kg (nutrients)/ha,” the African Union noted in a statement produced during the African Summit on Fertilizers and Soil Health held last May.
Conclusion
This significant financial investment and collaboration highlight a strategic move to enhance agricultural productivity and food security in Angola and the broader region. The project is poised to make substantial contributions to the agricultural sector, driving forward industrialization and economic growth.