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The African Development Bank Group (AfDB) has approved a USD 75 million financing package to support Nyanza Light Metals, a South Africa-based company poised to spearhead Africa’s industrialisation through the large-scale production of titanium dioxide, a key ingredient in various industrial and consumer products.
The investment will facilitate the establishment of a state-of-the-art titanium dioxide pigment plant with a production capacity of 80,000 tonnes per year, strategically located within the Richards Bay Industrial Development Zone in KwaZulu-Natal. The facility will process titanium ore sourced from South Africa and neighbouring African countries, transforming it into high-value titanium dioxide — a vital compound used in paints, coatings, plastics, cosmetics, food processing, and medical applications.
Although Africa is rich in titanium reserves, most countries, including South Africa, remain dependent on imported titanium dioxide. The Nyanza project seeks to reverse this dependence by producing the pigment locally to meet domestic and regional demand. In doing so, it will advance import substitution, enhance regional industrial integration, and position Africa more competitively within the global titanium value chain.
The AfDB’s contribution includes $25 million from the Africa Growing Together Fund (AGTF), a co-financing initiative established with the People’s Bank of China. This funding forms part of a larger syndicated financing facility arranged by the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), demonstrating strong pan-African and international collaboration to strengthen the continent’s manufacturing capacity.
A major component of the project is inclusive job creation. During construction, the project is expected to create over 2,400 local employment opportunities, with 30% of these positions allocated to women and 30% to youth. Upon completion, the fully operational plant will sustain approximately 850 skilled direct jobs, ensuring 45% representation for women, 30% for youth, and 20% for low-income earners — a testament to the project’s strong social impact agenda.
According to Solomon Quaynor, AfDB Vice-President for Private Sector, Infrastructure, and Industrialisation, the initiative embodies the Bank’s commitment to transforming Africa’s economic model from a reliance on raw material exports to a hub of value-added industrial production.
“This project helps change the long-standing narrative of Africa exporting low-value raw materials while importing finished goods,” Quaynor stated. “We are laying the foundation for an industrial economy that creates sustainable, inclusive opportunities across the continent.”
Donovan Chimhandamba, President and CEO of Nyanza Light Metals, hailed the AfDB’s approval as a major milestone in Africa’s pursuit of mineral beneficiation and industrial empowerment.
“The AfDB’s involvement provides not only financial backing but also credibility and long-term strategic partnership,” he said. “This project is about reclaiming Africa’s value, creating jobs, and empowering women, youth, and entrepreneurs.”
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Beyond job creation and import reduction, the Nyanza project is expected to stimulate local supply chains, diversify South Africa’s export base, and reinforce the country’s competitiveness in global manufacturing. Ultimately, it represents a transformational step toward building an industrialised Africa capable of driving its own growth through innovation, value addition, and inclusive economic participation.
