Dangote, Ethiopia Sign $2.5bn Deal to Build One of World’s Largest Fertiliser Plants

Abuja, Nigeria–Aliko Dangote, Africa’s richest man and Chairman of the Dangote Group, has entered into a $2.5 billion partnership with the Ethiopian Government to establish one of the world’s largest single-site fertiliser plants in Gode, located in Ethiopia’s Somali Regional State.

The agreement was formalised on Thursday between the Dangote Group and Ethiopian Investment Holdings (EIH), the government’s strategic investment entity. Under the terms of the deal, Dangote Group will hold a 60% equity stake, while EIH will retain 40%.

According to a statement released by EIH, the state-of-the-art facility will rank among the top five urea production complexes globally, with an annual production capacity of up to three million metric tonnes. The project is expected to be completed within 40 months.

The fertiliser complex will include pipelines to supply natural gas from Ethiopia’s Calub and Hilala gas fields, with plans for future expansion into ammonia-based fertilisers.

Commenting on the development, EIH Chief Executive Officer, Dr. Brook Taye, described the agreement as a pivotal move toward Ethiopia’s industrialisation and agricultural modernisation. “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency. The project will enhance energy security, improve agricultural productivity, and deliver tremendous value to our farmers,” he said.

Ethiopian Prime Minister Abiy Ahmed also hailed the partnership in a post on X (formerly Twitter), calling it a decisive step toward food sovereignty. “With an investment of $2.5 billion, this mega project will produce up to three million metric tonnes of fertiliser annually, positioning Ethiopia among the world’s top producers. It will also create jobs, secure fertiliser access for farmers, and significantly boost our agricultural sector,” he noted.

Dangote, whose group already operates Africa’s largest fertiliser plant in Lagos, Nigeria, reiterated his commitment to pan-African industrial development. “This partnership with EIH is a pivotal moment in our shared vision to industrialise Africa and ensure food security across the continent,” he said. He added that the 60-40 equity structure ensures strong local participation and reflects a model for sustainable foreign investment.

The Gode plant is expected to significantly reduce Ethiopia’s dependence on fertiliser imports and establish the country as a regional export hub for agricultural inputs in East Africa. Thousands of direct and indirect jobs are also expected to be created through the project.

Dangote Group’s fertiliser plant in Nigeria, launched in 2022, has already positioned the country as a key exporter of urea, producing three million metric tonnes annually.

By Taiwo Olatinwo/ August 28,2025