Ethiopia has entered into a landmark $2.5 billion agreement with Nigeria’s Dangote Group to establish one of the world’s largest fertiliser production plants, officials announced Thursday.
The project, to be located in Gode town in Ethiopia’s Somali Regional State, is expected to produce up to three million metric tons of urea fertiliser annually. Ethiopian Prime Minister Abiy Ahmed described the deal as a “decisive step toward food sovereignty,” highlighting its importance for farmers who have long faced shortages of affordable fertiliser.
The agreement was signed between Ethiopian Investment Holdings (EIH), the country’s sovereign investment arm, and the Dangote Group, owned by Africa’s richest man, Aliko Dangote. Under the terms, Dangote Group will hold a 60 percent stake, while EIH will retain 40 percent.
Brook Taye, CEO of EIH, called the project a “milestone for Ethiopia’s industrial self-sufficiency and agricultural modernization,” noting that it will also include pipelines transporting natural gas from the Calub and Hilala fields. The plant is expected to be completed within 40 months, with provisions for future expansion into ammonia-based fertilisers.
Aliko Dangote said the partnership reflects his vision of accelerating Africa’s industrialisation while ensuring food security across the continent. “This venture is a cornerstone for Ethiopia’s transformation and a catalyst for boosting agricultural productivity in the region,” he stated.
The facility is projected to create thousands of jobs, reduce Ethiopia’s dependence on fertiliser imports, and position the country as a key supplier to East African markets.
Dangote already operates Africa’s largest fertiliser facility in Lagos, Nigeria, commissioned in 2022, which has turned Nigeria into a net exporter of urea. The Ethiopian project marks the billionaire’s latest move to expand his footprint across Africa’s agricultural and industrial sectors.
