The African Development Bank has approved a US$75 million financing package for Nyanza Light Metals Pty Ltd of South Africa to construct an 80 000-tonne-per-year titanium dioxide pigment production facility at the Richards Bay Industrial Development Zone. The plant will process locally and regionally sourced ilmenite ore into high-value pigment used in paints, coatings, cosmetics, food processing and medical applications.
The financing deal includes US$50 million drawn from the AfDB’s own capital and US$25 million from the Africa Growing Together Fund — a co-financing initiative linked to the People’s Bank of China. Additional arrangements involve syndication led by the Africa Finance Corporation and the African Export‑Import Bank.
According to AfDB Vice-President for Private Sector, Infrastructure and Industrialisation, Solomon Quaynor, the project “is about changing the narrative from a continent that is heavily dependent on raw-material exports to one that is globally recognised as a player in domestic value-addition”. Nyanza CEO Donovan Chimhandamba described the backing as pivotal for Africa’s industrialisation and reclaiming value from its mineral wealth.
Construction is forecast to generate around 2 400 jobs, with 30 per cent allocated to women and 30 per cent for youth. Once operational, the facility is expected to employ approximately 850 skilled workers, targeting 45 per cent women, 30 per cent youth and 20 per cent low-income individuals.
South Africa boasts substantial titanium reserves yet imports nearly all its titanium dioxide pigment, a discrepancy the plant aims to address by substituting imports and creating export capacity. The global titanium dioxide pigment market is valued in the billions of dollars, with key consumption in coatings and plastics; this project positions Africa to capture a greater share of that market.
The RBIDZ location was chosen for its established industrial infrastructure, port access and proximity to mining operations, enabling efficient logistics for both feedstock and export markets. Analysts note that successful local processing of titanium oxides could stimulate ancillary industries such as chemical inputs, packaging, logistics and advanced manufacturing, thereby deepening industrial value-chains in the region.
Despite its potential, the project faces risks including securing consistent ore supply, accessing high-end technology for pigment production, meeting global quality standards, and managing environmental impacts associated with ilmenite processing and waste disposal. Previous beneficiation efforts in Africa have struggled with technology transfer and high production costs. Observers emphasise the importance of strong governance, operational discipline and integration into wider markets to realise the benefits. One commentary noted that “Africa’s abundant titanium reserves have not translated into local processing capacity — this model must learn from past failures”.
The AfDB investment aligns with its broader industrialisation strategy aimed at shifting the continent away from raw-material export dependence, promoting value addition and private-sector-led growth. This strategy also speaks to regional ambitions for job creation, enhanced exports and economic diversification. For South Africa, the project complements national industrial policy goals of boosting manufacturing, reducing import dependence and increasing competitiveness in global supply-chains.