Africa’s richest man, Aliko Dangote, has signed a $2.5 billion partnership with the Ethiopian Government to construct one of the world’s largest single-site fertiliser plants in Gode, Somali Regional State.
The agreement, concluded on Thursday between Dangote Group and Ethiopian Investment Holdings (EIH), will see Dangote Group hold a 60 percent equity stake, while EIH will retain 40 percent.
The facility, when completed, will rank among the top five largest urea production complexes globally with an annual capacity of up to three million metric tonnes.
According to EIH, the project will be completed within 40 months and will include dedicated pipelines to transport natural gas from Ethiopia’s Calub and Hilala gas fields. Provisions are also being made for future expansion into ammonia-based fertilisers, underscoring the project’s long-term strategic importance.
“This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization,” said Dr. Brook Taye, Chief Executive Officer of EIH.
He added that the project will deliver energy security, increase productivity, and create “tremendous value” for Ethiopian farmers.
Ethiopian Prime Minister Abiy Ahmed described the project as a decisive step toward achieving food sovereignty.
“With an investment of $2.5 billion, this mega project will produce up to three million metric tons of fertiliser annually, placing Ethiopia among the largest producers globally. It will create jobs locally, ensure reliable fertiliser supply, and strengthen our agricultural transformation,” he said.
On his part, Aliko Dangote said the partnership reflects his vision of accelerating Africa’s industrialisation and enhancing food security across the continent.
“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 and a catalyst for agricultural productivity throughout the region,” Dangote stated.
The plant is expected to create thousands of jobs, reduce Ethiopia’s reliance on fertiliser imports, and position the country as an export hub for East Africa.
The 60–40 ownership structure was also highlighted by Dangote as a model that guarantees strong Ethiopian participation in the project.
Dangote already operates Africa’s largest fertiliser plant in Lagos, Nigeria, inaugurated in 2022, with a capacity of three million tonnes per year.
The Lagos facility has made Nigeria a major exporter of urea, and the Ethiopian complex is expected to replicate similar industrial and agricultural benefits across East Africa.
Analysts note that the Ethiopian partnership consolidates Dangote Group’s position as a leading player in global fertiliser production and reflects a broader trend of African governments seeking private sector collaboration to reduce dependency on imports and improve agricultural productivity.