Afreximbank and the AMUFERT, OPAIA and SONAGAS to inaugurate a Fertilizer Plant in Angola

By Abdul Rahman Bangura-

Photo Credit: bulkinside.com

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Pan-African multilateral financial institution the African Export-Import Bank (Afreximbank) will endorse the installation of Ammonia and Urea Fertilizer’s (AMUFERT) fertilizer plant in Soyo, Angola with a $1.4 billion financing facility.

Afreximbank will function as the principal arranger and financial counselor for the project, with Angolan conglomerate OPAIA Group and state-owned Sonangol P&P Natural Gas (Sonagas) administering as supporters.

The African Energy Chamber (AEC), the voice of the African energy sector, lauds this endeavor, which depicts a climacteric in Africa’s quest for energy security and farming self-sufficiency. The AEC funds this project as it aligns with the common goal of increasing industrialization and sustainable economic expansion across the mainland. The AEC complimented Afreximbank’s critical contribution to structuring the
project’s financial framework and recognized the significant roles played by OPAIA GROUP and Sonagas. OPAIA Goup’s expertise and resources are crucial for the successful implementation of the plant, while Sonangol P&P’s provision of essential resources and technical support underscores the collaborative effort necessary for the project’s success.

Presently, Angola imports over $120 million worth of fertilizers yearly to fulfill local consumption demands. The fulfillment of the AMUFERT plant, with its full production capacity of 3,870 tonnes of fertilizer per day – with production predicted to start in early 2027 – is expected to dramatically lessen these imports. This action is not only economically helpful but is again vital for the country’s food sovereignty.

The installation of the AMUFERT plant hovers to have far-reaching impacts, comprising job creation, technological improvements, and economic diversification. This project is crucial for Angola as it seeks to handle the country’s reliance on imported fertilizers. By establishing a local production facility, the plant will enhance Angola’s agricultural self-sufficiency, reduce import costs and support local farmers with a reliable supply of high quality fertilizers. This initiative is expected to strengthen the domestic agricultural sector, contribute to food security and boost economic development by creating jobs and fostering technological developments in the region.

“Afreximbank’s $1.4 billion investment in the AMUFERT fertilizer plant is a strategic and transformative move for Angola. This initiative not only addresses critical gaps in agricultural self-sufficiency but also underscores the interconnected role of energy in driving sustainable agricultural development. The involvement of OPAIA GROUP and Sonagas is pivotal to the project’s success and will set a new benchmark for industrial growth and economic resilience in Angola,” Executive Chairman of the AEC NJ Ayuk says.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent