Dangote Signs $2.5 Billion Deal to Build Fertilizer Plant in Ethiopia

Africa’s richest man, Aliko Dangote, has signed a landmark $2.5 billion agreement with the Ethiopian government to build a world-class fertilizer plant, a project expected to transform the country’s agriculture-driven economy. The deal, finalized in Addis Ababa on Thursday, gives Dangote a 60% stake in the venture, while Ethiopian Investment Holdings (EIH) will control the remaining 40%. The facility will be located in Ethiopia’s Somali region and is projected to be one of the largest fertilizer hubs in Africa.

Ethiopian Prime Minister Abiy Ahmed described the partnership as a “historic milestone” for the country’s food security ambitions. He noted that the fertilizer plant would provide millions of local farmers with a steady supply of inputs, create new jobs, and reduce Ethiopia’s dependence on costly imports. Currently, the East African nation spends about $1 billion annually importing fertilizers, a heavy burden on its foreign exchange reserves.

The plant, scheduled for completion in 40 months, is expected to produce 3 million tons of fertilizer annually. It will be linked by pipeline to the Calub and Hilala natural gas fields in southeastern Ethiopia, ensuring sustainable raw material supply. According to EIH, the project will not only strengthen domestic food production but also help stabilize Ethiopia’s currency by cutting reliance on foreign fertilizer imports.

For Dangote, the deal underscores his growing pan-African footprint beyond cement and oil refining. Already operating a 3 million-ton fertilizer hub in Nigeria, Dangote said the Ethiopian project reflects his vision of “industrializing Africa and achieving food security across the continent.” His conglomerate, Dangote Group, runs cement plants in 10 African countries, and earlier this year, he pledged $400 million to expand operations at Ethiopia’s Mugher cement plant.

Dangote’s latest move builds on his decade-long presence in Ethiopia, where he first invested in cement production. Despite initial challenges, the Mugher plant has doubled its output to 5 million tons annually and added a $19 million bagging facility. Industry experts say the fertilizer project could have an even greater impact, positioning Ethiopia as a regional agricultural powerhouse while solidifying Dangote’s status as Africa’s most influential industrialist.

Source: Nairametrics