AfDB Approves $75m for South Africa’s Titanium Processing Breakthrough
The African Development Bank Group has approved $75 million to support Nyanza Light Metals, a South Africa-based company set to boost the continent’s industrialisation through large-scale titanium dioxide production.
The investment will fund the development of an 80,000-tonne-per-year pigment plant within the Richards Bay Industrial Development Zone. The facility will convert locally and regionally sourced titanium ore into high-value titanium dioxide, widely used in paints, cosmetics, food processing and medical applications.
Despite Africa’s abundant titanium reserves, South Africa and neighbouring countries rely almost entirely on imported titanium dioxide. The Nyanza project aims to reverse this trend by supplying the domestic and regional market, strengthening import substitution and integrating Africa into the global value chain.
The Bank’s financing package includes $25 million from the Africa Growing Together Fund, a co-financing initiative with the People’s Bank of China. The funding forms part of a larger syndicated facility arranged by the Africa Finance Corporation and the African Export-Import Bank.
Job creation is central to the project. Construction is expected to create more than 2,400 domestic jobs, with 30% reserved for women and 30% for youth. Once operational, the plant will support around 850 skilled direct jobs, targeting 45% women, 30% youth and 20% low-income earners.
Solomon Quaynor, Vice-President for Private Sector, Infrastructure and Industrialisation at the African Development Bank, said the investment reflects the Bank’s commitment to transforming Africa from an exporter of raw materials to a competitive hub of value addition.
“This project contributes to changing Africa’s old paradigm of exporting low-value raw materials while relying heavily on importing finished products,” he said. “We are building an industrial economy that will create inclusive opportunities for millions of people across the continent.”
Nyanza President and CEO Donovan Chimhandamba described the approval as a milestone for Africa’s mineral beneficiation ambitions.
“AfDB’s support brings credibility, strategic partnership and long-term commitment. This project is about reclaiming value, creating jobs and empowering youth, women and entrepreneurs,” he said.
In addition to boosting South Africa’s industrial capacity, the project is expected to stimulate local supply chains, diversify exports and strengthen the country’s position in global manufacturing.
