Aliko Dangote partners with Ethiopia to build a $2.5bn fertiliser plant in Gode, Somali State — one of the world’s largest, with a 3 million metric tonnes annual capacity

Africa’s richest man, Aliko Dangote, has partnered with the Ethiopian Government in a landmark $2.5 billion fertiliser plant deal set to transform the country’s agricultural sector and strengthen food security in East Africa.

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The fertiliser production complex will be located in Gode, Somali Regional State, and is expected to become one of the world’s largest single-site urea fertiliser plants, with a production capacity of up to 3 million metric tonnes annually.

The agreement, signed on Thursday between the Dangote Group and Ethiopian Investment Holdings (EIH), will see Dangote Group take a 60% equity stake, while EIH retains 40% ownership.

According to a statement from EIH, the mega project is a strategic step in “Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization.”

“This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self sufficiency and agricultural modernization,” said EIH CEO, Dr Brook Taye.

1. Total investment: $2.5 billion
2. Completion timeline: 40 months
3. Production capacity: 3 million metric tonnes of urea per annum
4. Location:  Gode, Somali Regional State, Ethiopia
5. Partners: Dangote Group (60%), Ethiopian Investment Holdings (40%)
6. Infrastructure: Pipelines to transport gas from Calub and Hilala gas fields
7. Future plans: Expansion into ammonia-based fertiliser production

Ethiopian Prime Minister Abiy Ahmed praised the agreement as a transformative development:

“With an investment of $2.5 billion, this mega project will produce up to 3 million metric tons of fertilizer annually, placing Ethiopia among the largest producers globally,” he said.

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

Reacting to the deal, Aliko Dangote described the venture as aligned with his broader mission to industrialise Africa.

“We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation,” he stated.

Dangote also highlighted the 60-40 ownership model as a guarantee of “strong Ethiopian participation”, noting that the project would create thousands of jobs, boost fertiliser availability, and support agricultural exports across East Africa.

Dangote currently operates Africa’s largest fertiliser plant in Lagos, Nigeria, inaugurated in 2022.

That facility also produces three million tonnes of urea annually and has turned Nigeria into a net exporter of fertiliser.

This new Ethiopian plant represents the company’s boldest international fertiliser expansion to date.

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With construction set to begin soon, the Dangote-EIH fertiliser plant marks a significant leap for Ethiopia in its quest for food security, industrial diversification, and regional economic influence.