The African Development Bank (AfDB) has announced that its board of directors has approved financing of $75-million for South Africa-based company Nyanza Light Metals.
The funding will support the development, construction and operation of an 80 000 t/y titanium dioxide pigment manufacturing plant in the Richards Bay Industrial Development Zone in KwaZulu-Natal.
“This investment reflects the [AfDB’s] commitment to driving Africa’s industrial transformation and changing Africa’s narrative from a continent that is heavily dependent on raw material exports to one that is globally recognised as a prominent player in domestic value-addition to its natural resources,” highlighted AfDB VP: private sector, infrastructure and industrialisation Solomon Quaynor.
“By supporting Nyanza to invest in infrastructure and local natural resources beneficiation, we are contributing to changing Africa’s old paradigm of exporting low-value raw materials while relying heavily on importing finished products; we are building an industrial economy that will create inclusive opportunities for millions of people across the continent.”
The AfDB funding package included $25-million from the Africa Growing Together Fund. This is a joint initiative of the AfDB and the People’s Bank of China. The AfDB package is part of a syndicated financing package that has been arranged by the Africa Finance Corporation and the African Export-Import Bank, acting as the initial mandated lead arrangers and bookrunners.
“AfDB’s approval marks a pivotal moment, not just for Nyanza, but for Africa’s industrial future,” affirmed Nyanza president and CEO Donovan Chimhandamba. “[The] AfDB brings more than funding; it brings credibility, strategic partnership, and a long-term commitment to Africa’s transformation. This endorsement affirms our mission to lead mineral beneficiation and positions Nyanza as a driver of inclusive industrialisation.”
Titanium dioxide is used in many sectors, including cosmetics, food processing, paints and in medical applications. The Nyanza plant would source its titanium ore feedstocks both locally and regionally. The project is forecast to create 2 400 jobs during its construction phase, of which about 30% will be reserved for youth and 30% for women. Once operational, it will support up to 850 direct and skilled jobs, of which 45% will be allocated to women, 30% to youth and 20% to low-income earners.
“Africa has long exported raw materials, only to import back high-value finished products made from those same resources, at a premium,” pointed out Chimhandamba.
“This cycle has constrained industrial growth and limited the continent’s ability to fully benefit from its natural wealth. With AfDB’s support, we are changing that by building a world-class titanium beneficiation complex to process African minerals locally for global markets. “It is about reclaiming value, creating jobs, and building an industrial base that empowers youth, women and entrepreneurs.”
