(Ecofin Agency) - Russia’s fertilizer manufacturer Uralchem is pursuing its expansion across Africa, and after Zimbabwe and Zambia, the company is eyeing the Angolan market.

A memorandum of understanding was signed in that regard by Uralchem and the Angolan Grupo Opaia SA on the sidelines of the Africa-Russia forum held October 22-24 in Sochi. Under this agreement, the Russian side will build a urea production plant with an annual capacity of 1.2 million tons in the African country. The facility is expected to start production in 2023.

Uralchem plans to go through bank financing mobilization to finance its project which needs between $1.2 billion and $1.3 billion; while Grupo Opaia will choose the project location, secure regulatory approvals in the country and supply gas for the plant’s operations.

Fertilizer demand in Angola reaches between 200,000 tons and 300,000 tons a year.

Espoir Olodo