Dangote seals $2.5bn deal with Ethiopia for mega fertiliser plant

Aliko Dangote has sealed a multibillion-dollar deal with the Ethiopian government to establish a $2.5 billion fertiliser plant in the country’s eastern Somali region.

The agreement, signed in Addis Ababa on Thursday, gives Dangote a 60 percent stake in the project, while the remaining 40 percent will be held by state-owned Ethiopian Investment Holdings (EIH).

Once completed in about 40 months, the plant is projected to produce 3 million tons of fertiliser annually. It will be connected via pipeline to the Calub and Hilala natural gas fields in Ethiopia’s southeast, ensuring a steady supply of feedstock.

EIH said the development would ease Ethiopia’s reliance on imported fertiliser, strengthen domestic supply, and reduce pressure on foreign reserves.

Prime Minister Abiy Ahmed hailed the project as transformative for Ethiopia’s agriculture.

“This project will create jobs locally, ensure a reliable fertiliser supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty,” he said.

Dangote, who already operates cement plants in 10 African countries and a 3-million-ton fertiliser facility in Nigeria that began operations three years ago, described the Ethiopian venture as a milestone.

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” he said.