Aliko Dangote has entered into a multibillion-dollar agreement with the Ethiopian government to construct a $2.5 billion fertiliser plant.
The deal, signed in Addis Ababa on Thursday, grants Dangote a 60% stake in the project, while the remaining 40% will be owned by the state-run Ethiopian Investment Holdings (EIH). The facility will be built in Ethiopia’s eastern Somali region.
Designed to produce 3 million tons of fertiliser annually, the plant is expected to be completed within 40 months. It will be connected by pipeline to the Calub and Hilala natural gas fields in the country’s southeast.
EIH highlighted that the project will significantly reduce Ethiopia’s reliance on fertiliser imports by ensuring a steady domestic supply and easing foreign currency pressures.
Prime Minister Abiy Ahmed hailed the agreement as a major step toward strengthening Ethiopia’s food security. “This project will create local employment, secure fertiliser access for our farmers, and represent a crucial milestone on our journey to food sovereignty,” he said in a statement.
Dangote, who already operates cement ventures across 10 African countries and runs a 3 million-ton fertiliser facility in Nigeria, expressed optimism about the collaboration.
“This partnership with Ethiopian Investment Holdings marks a key moment in our joint mission to drive Africa’s industrialisation and secure the continent’s food future,” he said.
