AfDB Approves $75M to Power Titanium Value-Addition Project in South Africa

In a landmark move to reshape Africa's industrial future, the Board of Directors of the African Development Bank Group (AfDB) has approved a $75 million financing package to support Nyanza Light Metals Pty Ltd (Nyanza)—a South Africa-based company—towards establishing a world-class titanium dioxide pigment production facility in Richards Bay Industrial Development Zone. The investment is part of a broader vision to end Africa's over-reliance on raw mineral exports and stimulate local value addition, job creation, and industrial diversification.

Unlocking Africa's Titanium Wealth Through Local Processing

Africa is home to some of the largest titanium reserves globally, yet the continent continues to import nearly all its titanium dioxide, a key industrial pigment used in:

• Paints and coatings

• Cosmetics and pharmaceuticals

• Food processing

• Medical and optical devices

Nyanza's upcoming facility will be a game-changer. With a planned production capacity of 80,000 tonnes per year, the plant will process locally and regionally sourced ilmenite (titanium ore) into titanium dioxide pigment. This high-value output will position Africa to compete in the global pigment market, contributing to import substitution, export diversification, and supply chain resilience for a wide array of industrial sectors.

Financing Package Backed by Major African Institutions

The African Development Bank's contribution consists of:

• $50 million from AfDB's own capital

• $25 million from the Africa Growing Together Fund (AGTF), a co-financing initiative with the People's Bank of China

AfDB joins a broader syndicated loan consortium, with the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank) serving as Initial Mandated Lead Arrangers and Bookrunners.

This multi-institutional support reflects strong confidence in Nyanza's capacity to spearhead Africa-led industrial transformation and attract institutional capital into large-scale beneficiation projects.

Job Creation and Inclusive Economic Growth at the Core

The Nyanza project has been designed with inclusive development goals. The construction phase is expected to generate:

• 2,400 domestic jobs, of which:

  • 30% will be allocated to women

  • 30% reserved for youth

Once operational, the plant will create:

• Up to 850 skilled direct jobs, targeting:

  • 45% women

  • 30% youth

  • 20% low-income earners

These targets directly address South Africa's pressing unemployment challenges while fostering broader participation in the country's industrial economy.

Changing the Paradigm: From Extractor to Manufacturer

According to Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization:

"This investment reflects the African Development Bank'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 recognized as a prominent player in domestic value-addition to its natural resources."

The investment supports AfDB's broader strategy to:

• Build climate-resilient infrastructure

• Promote beneficiation of natural resources

• Stimulate private sector-led growth

• Expand intra-African and global exports

A Vision for Africa's Industrial Sovereignty

Nyanza President and CEO Donovan Chimhandamba welcomed the Bank's backing as a pivotal moment:

"AfDB's approval marks a pivotal moment, not just for Nyanza, but for Africa's industrial future. With AfDB's support, we are 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."

He underscored that Africa's historical pattern of exporting raw minerals and importing processed goods at a premium has constrained industrial development, creating a value-loss cycle. Nyanza seeks to reverse this dynamic and serve as a model for future mineral processing projects across the continent.

Catalyzing Wider Economic Impact

Beyond titanium dioxide production, the project is expected to:

• Stimulate the emergence of auxiliary industries (e.g., chemical processing, packaging, logistics)

• Strengthen regional value chains

• Enhance local supplier development

• Foster technology and skill transfer in advanced materials processing

It also bolsters South Africa's industrial policy objectives, including:

• Boosting exports

• Reducing dependence on imported inputs

• Building a green and sustainable industrial base

Reclaiming Africa's Industrial Destiny

The AfDB's strategic investment in Nyanza Light Metals signals a powerful shift in how Africa approaches industrialization—from raw material dependency to homegrown value chains. With the Richards Bay facility, Africa moves closer to controlling its share of the $17 billion global titanium dioxide market, while creating sustainable jobs, empowering communities, and redefining its role in the global economy.

This marks another milestone in AfDB's mission to "Industrialize Africa", ensuring that the continent's mineral wealth translates into widespread prosperity and resilience.