Africa’s richest man, Aliko Dangote, has officially signed a landmark $2.5 billion partnership with the Ethiopian government to construct one of the world’s largest single-site fertiliser production complexes in Gode, Somali Regional State.
The agreement, inked on Thursday, signals a historic step in industrialisation and agricultural modernisation for Ethiopia and across Africa.
The deal was finalised between Dangote Group and Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, with a 60:40 equity structure favoring Dangote Group.
The fertiliser plant, expected to rank among the top five largest urea production facilities globally, will have an annual capacity of up to three million metric tonnes.
Dr. Brook Taye, CEO of EIH, described the project as a milestone in Ethiopia’s drive for industrial self-sufficiency and food security.
“This landmark agreement with Dangote Group ensures energy security, boosts productivity, and delivers tremendous value to Ethiopian farmers. The partnership aligns with Ethiopia’s vision to become a leading agricultural hub in Africa,” he said.
Ethiopian Prime Minister Abiy Ahmed also hailed the partnership, describing it as “a decisive step toward food sovereignty and agricultural transformation.”
He emphasised the project’s potential to create thousands of jobs, enhance domestic fertiliser availability, and reduce reliance on imports.
“This $2.5 billion mega project will produce up to 3 million metric tons of fertiliser annually, positioning Ethiopia among the largest producers globally,” he said in a statement on X.
For Dangote, the initiative reflects his ongoing vision to industrialise Africa.
“This partnership represents a pivotal moment in our shared goal to industrialise Africa and strengthen food security across the continent.
We are committed to leveraging our decades of experience in large-scale industrial projects to make this plant a cornerstone of Ethiopia’s industrial transformation,” Dangote said.
The project is scheduled for completion within 40 months and will include pipelines connecting the Calub and Hilala gas fields to the production site.
Provisions have also been made for future expansions into ammonia-based fertilisers, ensuring the plant’s long-term adaptability and competitiveness.
Nigeria’s fertiliser industry already benefits from Dangote’s flagship facility in Lagos, inaugurated in 2022, which produces three million tonnes of urea annually.
The new Ethiopian plant is expected to replicate this success, enhancing regional export potential and further establishing Dangote Group as a continental leader in agricultural input production.
Industry analysts highlight the broader implications of the deal. Beyond the immediate economic and agricultural benefits, the fertiliser plant is set to stimulate ancillary sectors such as logistics, energy, and construction.
Experts predict a ripple effect on local employment, technological transfer, and capacity building in Ethiopia, contributing to broader socioeconomic development.
The Ethiopian government, through EIH, emphasised the strategic importance of local participation in the project, ensuring that 40 per cent equity is held domestically.
“Strong Ethiopian participation guarantees that the benefits of industrialisation and technology transfer are shared with local communities and farmers,” Dr. Taye explained.
As African nations intensify efforts to achieve food security and industrial growth, mega projects like the Dangote-Ethiopia fertiliser complex demonstrate the transformative potential of public-private partnerships.
Observers note that strategic collaboration between government bodies and private investors can catalyse regional economic growth, enhance global competitiveness, and create sustainable development pathways for African nations.
With construction set to begin shortly, stakeholders anticipate that the fertiliser plant will not only strengthen Ethiopia’s domestic agricultural output but also elevate East Africa’s position in global fertiliser markets.
As Dangote Group and EIH move forward, the project is expected to be a blueprint for future industrial ventures across the continent, combining technological innovation, private sector expertise, and government support to achieve landmark outcomes.