AfDB backs Nyanza Light Metals with R1.2bn to boost Africa’s mineral beneficiation

The African Development Bank (AfDB) has approved $75 million (around R1.28 billion) in financing for South Africa-based Nyanza Light Metals to advance large-scale titanium processing and strengthen Africa’s industrial base through mineral beneficiation.

The investment will support the development of an 80 000-ton-per-year titanium dioxide pigment manufacturing plant at the Richards Bay Industrial Development Zone for local market and export to the rest of the African continent, Europe, Americas and the Middle East.

The project aims to process locally and regionally sourced titanium ores into high-value pigment used in paints, coatings, cosmetics, and medical applications—industries currently dependent on costly imports.

Of the total financing, $25m will come from the Africa Growing Together Fund (AGTF), a joint initiative between the AfDB and the People’s Bank of China.

The remainder forms part of a syndicated package arranged with the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), both serving as lead arrangers and bookrunners.

The project is expected to generate 2 400 jobs during construction, with 30% reserved for women and 30% for youth. Once operational, it will create 850 skilled jobs, targeting 45% women and 30% youth participation. This focus on inclusion aligns with South Africa’s employment priorities and the Bank’s wider drive for equitable industrial growth.

Solomon Quaynor, AfDB vice president for private sector, infrastructure and industrialization, said this investment was part of driving the continent's industrial transformation. 

“This investment reflects the African Development Bank's commitment to driving Africa’s industrial transformation and changing Africa’s narrative from a continent that is heavily dependent on raw material exports to one that is globally recognized as a prominent player in domestic value-addition to its natural resources,” Quaynor said.

“By supporting Nyanza to invest in infrastructure and local natural resources beneficiation, we are contributing to changing Africa’s old paradigm of exporting low-value raw materials while relying heavily on importing finished products; we are building an industrial economy that will create inclusive opportunities for millions of people across the continent.”

South Africa imports up to 35 000 tons per annum (tpa) of titanium dioxide valued at over R1.5bn while Africa as a whole imports over 150 000 tpa valued at close to R7bn.

With the production of 80 000 titanium dioxide tpa, Nyanza is Africa’s first titanium mineral beneficiation plant in Africa, supporting the African Continental Free Trade Area agreement to promote intra-trade on the continent and give paint manufacturers security of supply.

The project supports the AfDB’s strategic objective to build climate-resilient infrastructure, promote value addition to natural resources, and stimulate private sector growth. It is also expected to catalyze related industries, strengthen local supply chains, and diversify South Africa’s export base.

Donovan Chimhandamba, President and CEO of Nyanza Light Metals, welcomed the AfDB’s support as a “pivotal moment” for Africa’s industrial future.

Chimhandamba said AfDB’s approval marks a pivotal moment, not just for Nyanza, but for Africa’s industrial future.

“AfDB brings more than funding; it brings credibility, strategic partnership, and a long-term commitment to Africa’s transformation. This endorsement affirms our mission to lead mineral beneficiation and positions Nyanza as a driver of inclusive industrialization,” Chimhandamba said.

“Africa has long exported raw minerals, only to import back high-value finished products made from those same resources, at a premium. This cycle has constrained industrial growth and limited the continent’s ability to fully benefit from its natural wealth.

“With AfDB’s support, we are changing that by building a world-class titanium beneficiation complex to process African minerals locally for global markets. It is about reclaiming value, creating jobs, and building an industrial base that empowers youth, women, and entrepreneurs.”

The R4.5bn Nyanza Light Metals project was launched in May 2021 following the commencement of construction of the first phase in March that year. Nyanza is a 100% South African Black owned chemical manufacturing company established in 2011 to produce titanium pigment utilising waste slag.

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