LUANDA, Angola, July 31, 2024 -- Pan-African multilateral financial institution the African Export-Import Bank (Afreximbank) will support the establishment of Ammonia and Urea Fertilizer’s (AMUFERT) fertilizer plant in Soyo, Angola with a $1.4 billion financing facility. Afreximbank will act as the lead arranger and financial advisor for the project, with Angolan conglomerate OPAIA Group and state-owned Sonangol P&P Natural Gas (Sonagas) serving as sponsors.

The African Energy Chamber (AEC), the voice of the African energy sector, applauds this initiative, which represents a milestone in Africa’s pursuit of energy security and agricultural self-sufficiency. The AEC supports this project as it aligns the common goal of advancing industrialization and sustainable economic growth across the continent. The AEC commends Afreximbank’s critical contribution to structuring the project’s financial framework and recognizes 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.

Currently, Angola imports over $120 million worth of fertilizers annually to meet local consumption demands. The completion of the AMUFERT plant, with its full production capacity of 3,870 tonnes of fertilizer per day – with production expected to start early 2027 – is expected to dramatically reduce these imports. This move is not only economically beneficial but is also critical for the country’s food sovereignty.

The establishment of the AMUFERT plant is poised to have far-reaching impacts, including job creation, technological advancements and economic diversification. This project is essential for Angola as it aims to address the country’s dependence 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.