Afreximbank and OPAIA Group Partner in Groundbreaking $2 Billion Fertilizer Deal to Boost Agricultural Productivity in Angola

The African Export-Import Bank (Afreximbank) has announced its role as the lead financier for a significant $2 billion ammonia and urea fertilizer plant in Soyo, Angola, developed by the OPAIA Group. Afreximbank will provide $1.4 billion in debt funding as the Mandated Lead Arranger, working alongside partner institutions. Additionally, the bank will facilitate equity fundraising through its Advisory and Capital Markets division.

The project, managed through OPAIA Group’s subsidiary, Amufert S.A., achieved a critical milestone on November 20, 2024, with the signing of a $1.4 billion Engineering, Procurement, and Construction (EPC) contract. This agreement officially launches the construction of what is set to become one of Africa’s largest fertilizer plants.

Designed to reduce Angola’s dependence on imported fertilizers, the facility will have a production capacity of 4,000 metric tons per day. It is expected to significantly improve agricultural productivity, enhance food security, and support Angola’s economic diversification by utilizing the country’s natural gas resources.

At a high-profile signing ceremony attended by senior Angolan government officials, diplomatic representatives, and corporate stakeholders, Afreximbank emphasized the project’s importance for regional food sovereignty and trade.

“Afreximbank is pleased to lead the mobilization of capital for this project, recognizing the significance of Amufert S.A.’s ammonia and urea production plant in ensuring national and regional food sovereignty through localized fertilizer production in Angola,” stated Oluranti Doherty, Managing Director of Export Development at Afreximbank. “Once operational, the fertilizer plant will support higher agricultural yields, increased production, and an expansion in the export of agricultural products from Angola.”

The OPAIA Group underscored the broader economic and social impacts of the initiative. “This project represents more than just the construction of a factory. It is a crucial element in the economic development of Angola and Africa, driving industrial growth and providing a concrete solution to the urgent need for increased agricultural production and food security for future generations,” said Agostinho Kapaia, Chairman of OPAIA Group.

The project is expected to create 4,700 jobs, with 3,500 positions during construction and 1,200 permanent roles upon completion. Construction is scheduled to begin in 2025, with the plant projected to be operational by 2027.

The fertilizer plant has received Angola’s Golden License, a designation for strategic initiatives that streamline approvals and incentivize investment. Once operational, the facility will not only satisfy domestic fertilizer demand but also position Angola as a significant exporter within Africa, promoting regional trade integration.

The collaboration between Afreximbank and OPAIA Group highlights the growing momentum for industrial and agricultural transformation across the continent. By reducing dependence on oil revenues and addressing critical gaps in the agricultural supply chain, the project is set to play a pivotal role in Angola’s economic diversification and resilience.