Billionaire Dangote, Togo agree to $2 billion phosphate project
Dangote Industries will invest in a $2 billion phosphate project in Togo, positioning itself to become a main supplier of fertilizer in West Africa.
The company controlled by Nigerian billionaire Aliko Dangote will mine an estimated 2 billion tons of phosphate in nearby Togo for processing as much as 1 million tons of fertilizer a year at a new complex in Lagos, according to a joint statement by the company and the Togolese presidency.
“Under the agreement, Togo will provide access to phosphate resources and the Dangote Group will provide access to ammonia and to the Nigerian market,” the parties said in the statement. Ammonia is a key ingredient in the production of phosphate fertilizer.
Nigeria accounts for as much as 50% of harvested land in West Africa, making it a top market for fertilizer consumption growth, according to London-based commodities consultancy CRU.
Dangote is also planning to build a cement plant with an annual capacity of 1.5 million tons in the Togolese capital of Lome, according to the statement. The $60 million facility is scheduled to start operating by the end of next year, using clinker from Togo and Nigeria.
(By Yinka Ibukun)