Africa Finance Corporation said on Monday it will provide a $600 million facility to the Dangote Group to help it triple fertiliser production in Nigeria and build a new plant in Ethiopia.

AFC said in a statement that the money will go to Greenview Fertilizer Corp., Dangote's fertiliser holding company, and will help increase urea output in Nigeria from 3 million to 9 million metric tonnes per year while adding another 3 million tonnes in Ethiopia.

The Dangote Group has said the fertiliser projects would cost up to $7 billion.

Africa imports most of its fertiliser, making it vulnerable to supply chain disruptions like the Iran war.

Building 'foundation for Africa to feed itself'

"By supporting the development of the world's largest fertiliser platform, AFC is helping build the foundation for Africa to feed itself, create productive jobs and strengthen our economic sovereignty," said Samaila Zubairu, president and CEO of AFC.

The Lagos-based lender has previously helped coordinate a $3 billion syndicated loan for Dangote's 650,000 barrels-per-day refinery, Africa's largest.