Dangote fertiliser plant deal worth \$2.5bn in Ethiopia aims to boost food security, create jobs, and reduce fertiliser import dependence

Dangote fertiliser plant development has taken a major step forward after Nigerian billionaire Aliko Dangote signed a \$2.5 billion agreement with the Ethiopian government to build a world-class facility.

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The deal, signed in Addis Ababa on Thursday, grants Dangote 60% ownership of the project, while Ethiopian Investment Holdings (EIH), the state-owned wealth fund, will hold the remaining 40%.

The plant will be constructed in Ethiopia’s eastern Somali region and is expected to take 40 months to complete.

Once operational, the plant will produce 3 million tons of fertiliser annually. It will also be connected via pipeline to the Calub and Hilala natural gas fields in Ethiopia’s southeast, ensuring steady supply and lower production costs.

EIH noted that the project will drastically reduce the country’s reliance on imported fertiliser, alleviating foreign exchange pressures and providing a stable local supply.

Prime Minister Abiy Ahmed hailed the initiative as a landmark moment for Ethiopia.

“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.

For Dangote, the venture builds on his existing footprint across Africa. He already operates cement businesses in 10 African countries and runs a 3 million-ton fertiliser hub in Nigeria that began operations three years ago.

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

Also read: Dangote Signs $2.5bn Deal with Ethiopia to Build One of World’s Largest Fertiliser Plants

The Dangote fertiliser plant project is being celebrated as a milestone for both Ethiopia’s agricultural resilience and Africa’s broader drive toward self-sufficiency.