South Africa-based Nyanza Light Metals Pty Ltd (Nyanza) is to get US$75mn in funding from the African Development Bank Group (AfDB) for 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 ZoneThe aim is to boost industrialisation 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.Manufacturers both in South Africa and across the rest of the region rely almost entirely on costly imports.Nyanza’s project is intended to change this by producing titanium dioxide locally, contributing to import substitution and positioning Africa within the global titanium dioxide value chain.“AfDB’s approval marks a pivotal moment, not just for Nyanza, but for Africa’s industrial future,” said Nyanza president and CEO, Donovan Chimhandamba.“This endorsement affirms our mission to lead mineral beneficiation and positions Nyanza as a driver of inclusive industrialisation.”Africa has long exported raw minerals, only to import back high-value finished products made from those same resources, at a premium, according to Chimhandamba.“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.”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.The AfDB’s support also includes US$25mn from the Africa Growing Together Fund (AGTF), a co-financing initiative between the AfDB and the People’s Bank of China.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, around 30% of which will be reserved for women and 30% for youth, as part of efforts to reduce unemployment in South Africa.“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,” said Solomon Quaynor, AfDB’s vice president for private sector, infrastructure and industrialisation.“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.”Read more:
Nyanza Light Metals titanium processing funding
Site geotechnical studies and piling works at Nyanza Light Metals in South Africa. (Image source: Nyanza Light Metals)
