Russian chemical manufacturer, URALCHEM, has signed a Memorandum of Understanding (MoU) with Grupo Opaia SA of Angola for the creation of a joint ammonia and urea production complex in Luanda.

The signing ceremony which was held on the sideline of the Russia-Africa Economic Summit in Sochi was attended by Dmitry Konyaev, Deputy Chairman of the Board of Directors of URALCHEM and Agostinho Kapaia, President of Grupo Opaia SA.

The complex is set to be launched in 2023.

According to the document, an approximate amount of investment in production will be between 1.2-1.3 billion dollars and as part of the project, URALCHEM plans to attract bank financing.

The document also says URALCHEM will be responsible for all issues related to the design, construction and promotion of the products while Grupo Opaia SA will be responsible for approval of permission documentation, gas supply and site finding.

“The planned production capacity of the complex is 1.2 million tons of urea. For the construction of the plant, we lay from 4 to 5 years. We hope that our cooperation with Grupo Opaia will be fruitful and we will be able to provide Angola and bordering countries with qualitative fertilizers,” said Konyaev.

Konyaev also took part in the panel session “Sustainable partnership in agriculture: institutions, tools, guarantees”, a session which was attended by representatives of relevant departments, industry experts and business leaders.

The participants discussed the development of agriculture and industry on the African continent, they identified the main goals facing Russian and African partners and shared their experience in the implementation of the projects in the African market.

In his speech, Dmitry Konyaev noted that the existing problems in Africa related to food, logistics and technology can be solved only if there will be support from individual countries, as well as from development institutions, governments and the business community.

He stressed that URALCHEM is ready to offer not only mineral fertilizers but also digital solutions for farmers, as well as agricultural consulting services.

The Russia – Africa Economic forum is being held for the first time. Its main goal is to create favourable trade and economic relations between the Russian Federation and African countries. The lead organizer of the event is The Roscongress Foundation.