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14th August 2017

Fertiliser plant ‘of prime strategic importance’ backed

Lending to the world’s largest single stream fertiliser plant is increased

The Emerging Africa Infrastructure Fund (EAIF) has backed the construction of Indorama Eleme Fertilizer and Chemicals’ (IEFC) new US$1.2bn fertiliser plant at Port Harcourt, Nigeria.

A substantial part of the facility is already producing 600m metric tonnes of fertiliser a year. When fully operational, it will produce 1.4m tonnes annually, helping to fulfil rapidly growing demand for fertiliser in Nigeria and West Africa.

IEFC’s Port Harcourt plant has substantially reduced the need for fertiliser imports and the location is ideally placed to service both domestic and international markets. This benefits the Nigerian economy through foreign exchange savings and boosts export earnings. The plant has created new employment in its manufacturing, distribution, marketing, sales, management and administration functions. Local suppliers and sub-contractors also benefit from servicing the needs of the business.

EAIF considers the new plant to be of prime strategic importance to the development of agriculture in Nigeria and neighbouring countries.

To ensure that the project was capitalised as originally required, removing financing uncertainty and ensuring delivery of the developmental benefits of the plant, EAIF agreed to take over the debt financing obligation of a local bank. Consequently, EAIF’s lending to IEFC has increased from US$30m to US$48.8m.

Improving food production security has a direct bearing on fighting famine and poverty and the economic and political instability such conditions often foster.