African Development Bank approves $75 million in support for Nyanza Light Metals
Africa Finance Corporation tops US$10 billion target one year early
April 15, 2023
The Board of Directors of the African Development Bank Group has approved $75 million in financing to support South Africa-based Nyanza Light Metals Pty Ltd (Nyanza) to boost industrialization in Africa through local value addition to the continent’s abundant titanium mineral resources.
Titanium dioxide is a crucial pigment used across numerous industries, including paints and coatings, food processing, cosmetics, and medical applications. Notwithstanding this demand, manufacturers in South Africa and across the region rely almost entirely on costly imports. Nyanza’s project will change this by producing titanium dioxide locally, contributing to import substitution and positioning Africa within the global titanium dioxide value chain.
The African Development Bank’s financing package includes $25 million from the Africa Growing Together Fund (AGTF) – a co-financing initiative between the African Development Bank and the People’s Bank of China. The financing will support the development, construction, and operation of an 80,000-tonnes-per-year titanium dioxide pigment manufacturing plant and supporting infrastructure within the Richards Bay Industrial Development Zone. This facility will process locally and regionally sourced titanium ores into high-value pigment for various industrial applications.
The Bank’s contribution forms part of a syndicated funding package arranged by the Africa Finance Corporation and the African Export-Import Bank, serving as Initial Mandated Lead Arrangers and Bookrunners.
A key focus of the Bank’s funding is job creation. The Nyanza project is expected to generate more than 2,400 domestic jobs during construction -30% of which will be reserved for women and 30% for youth- and up to 850 skilled direct jobs once operational, with targets of 45% women, 30% youth, and 20% low-income earners. This will help reduce unemployment in South Africa and promote inclusive participation in South Africa’s industrial sector.
Commenting on the project, Solomon Quaynor, the Bank’s Vice President for Private Sector, Infrastructure and Industrialization, said: “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. 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.”
Nyanza President and CEO, Donovan Chimhandamba, said, “AfDB’s approval marks a pivotal moment, not just for Nyanza, but for Africa’s industrial future. 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 industrialization.”
Architectural rendering of the proposed Nyanza Light Metals titanium dioxide plant in South Africa
Donovan added, “Africa has long exported raw minerals, only to import back high-value finished products made from those same resources, at a premium. 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.”
The Project supports the African Development Bank’s strategic objective to Build Climate-Resilient Infrastructure and promote value addition to natural resources. It is also expected to catalyze private sector growth, stimulate the creation of related industries and local supply chains, and diversify South Africa’s export base through increased participation in global value chains.
