The African Development Bank (AfDB) has approved a $75 million financing package for Nyanza Light Metals, a South Africa-based company, to support the development of a world-class titanium dioxide pigment manufacturing plant in the Richards Bay Industrial Development Zone. This landmark investment is set to transform Africa’s position in the global titanium value chain and marks one of the most significant industrial beneficiation projects on the continent.
Titanium dioxide is a critical pigment used in a wide range of industries, including paints and coatings, cosmetics, food processing, and medical applications. Despite Africa’s abundant titanium reserves, the region has long relied on costly imports to meet demand. Nyanza’s project aims to reverse this trend by processing locally and regionally sourced titanium ores into high-value pigment, thereby promoting import substitution and industrial self-sufficiency.
The plant will have an annual production capacity of 80,000 tonnes, positioning South Africa, and Africa more broadly, as a competitive player in the global titanium dioxide market.
The AfDB’s financing includes $25 million from the Africa Growing Together Fund (AGTF), a co-financing initiative with the People’s Bank of China. The remaining funds are part of a syndicated package arranged by the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), both serving as Initial Mandated Lead Arrangers and Bookrunners.
This investment aligns with AfDB’s strategic goals to build climate-resilient infrastructure, promote value addition to natural resources, and catalyze private sector growth across the continent.
The Nyanza project is expected to generate over 2,400 jobs during construction, with 30% reserved for women and 30% for youth. Once operational, the facility will employ up to 850 skilled workers, targeting 45% women, 30% youth, and 20% low-income earners. These targets reflect a strong commitment to inclusive industrial development and economic empowerment.
Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialization, stated:
This investment reflects the African Development Bank’s commitment to driving Africa’s industrial transformation and changing Africa’s narrative, from a continent heavily dependent on raw material exports to one that is globally recognized for domestic value addition. By supporting Nyanza, we are building an industrial economy that creates inclusive opportunities for millions across the continent.
Donovan Chimhandamba, President and CEO of Nyanza Light Metals, added:
AfDB’s approval marks a pivotal moment, not just for Nyanza, but for Africa’s industrial future. This endorsement affirms our mission to lead mineral beneficiation and positions Nyanza as a driver of inclusive industrialization. We are reclaiming value, creating jobs, and building an industrial base that empowers youth, women, and entrepreneurs.
The titanium beneficiation complex is expected to diversify South Africa’s export base, stimulate local supply chains, and strengthen the continent’s manufacturing capabilities. With construction underway, the project is set to begin production by 2027, marking a new chapter in Africa’s industrial development.
