Aliko Dangote, Africa’s richest man, has signed a landmark $2.5 billion agreement with the Ethiopian government to build a world-class fertiliser plant, in a move hailed as a game-changer for the country’s agricultural and food security ambitions.
The deal, inked on Thursday in Addis Ababa, grants Dangote Industries a 60% stake in the project, while Ethiopian Investment Holdings (EIH), the state-owned sovereign wealth fund, will retain the remaining 40%.
The facility will be built in Ethiopia’s eastern Somali region, strategically positioned to leverage the country’s natural gas resources.
Designed to be completed within 40 months, the plant will have the capacity to produce 3 million tonnes of fertiliser annually, supplied directly via pipeline from the Calub and Hilala natural gas fields in the southeast.
EIH said the project will dramatically reduce Ethiopia’s reliance on fertiliser imports, strengthening local supply chains and easing pressure on scarce foreign exchange reserves.
Prime Minister Abiy Ahmed described the agreement as a milestone for Ethiopia’s development strategy:
“This project will create jobs, secure a reliable fertiliser supply for our farmers, and mark a decisive step toward food sovereignty,” he declared.
For Dangote, whose business empire already spans cement operations in 10 African countries and a 3-million-tonne fertiliser hub in Nigeria launched three years ago, the project underscores his broader vision for Africa.
“Our partnership with Ethiopian Investment Holdings is a pivotal step in the drive to industrialise Africa and ensure food security across the continent,” Dangote said.
Once operational, the Ethiopian facility is expected not only to transform the country’s agricultural sector but also to position Ethiopia as a key fertiliser hub in the Horn of Africa.
