SOUTH AFRICA – Africa Finance Corporation (AFC) has made an investment in natural resources company Nyanza Light Metals, owner of a plant in South Africa forecast to produce 80,000 tonnes per annum (tpa) of titanium dioxide pigment (TiO2).
AFC acted as co-mandated lead arranger, co-funder and co-developer along with African Export-Import Bank (Afreximbank) on the project.
Arkein Capital Partners and DBF Capital Partners acted as sponsors, with additional support from the South Africa Department of Trade Industry and Competition on feasibility matters. Nyanza received transactional advice from Athari Capital Partners.
“Landmark deal for South Africa and Africa” in a statement, adding: “It is closely aligned with our investment strategy which focuses on the in-country value-accretive beneficiation of Africa’s natural resources,” AFC’s senior director and head of project development and technical solutions, Amadou Wadda said.
“South Africa being one of the world’s largest producers of titanium ore makes this project a key example of moving Africa higher up the value-added manufacturing supply chain whilst creating local jobs and driving economic development on the continent.”
Nyanza’s CEO Donovan Chimhandamba said the investment was a milestone that supports their commitment to developing an impactful mineral beneficiation and diversified chemicals manufacturing plants on the African continent.
Founded in 2011, Nyanza is headquartered in Gauteng, South Africa. In March it completed the first phase of construction of its TiO2 plant in the Richards Bay Industrial Development Zone in KwaZulu Natal Province, some 190km north-east of Durban.
The initial US$3 million investment from Lagos-headquartered development finance institution AFC will be used to cover development costs of the facility, until financial close of the US$550 million project in the first half of 2023, with main plant production forecast to scale up early in 2025.
The beneficiation process will add value by improving the grade of extracted ore.
South Africa is the second-biggest supplier of titanium ores in the world, yet imports the vast majority of value-added titanium products it needs for paints, plastics, pharmaceuticals and construction materials.
The project is significant since it will be the African continent’s first titanium dioxide pigment production facility.
Recently, AFC received US$100 million equity investment from The Public Investment Corporation (PIC), Africa’s largest asset manager.
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