Aliko Dangote, Africa’s richest man, has entered into a $2.5 billion agreement with the Ethiopian government to build one of the world’s biggest single-site fertiliser plants in Gode, Somali Regional State.
The deal, signed on Thursday between Dangote Group and Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, will see Dangote Group own a 60% stake, while EIH takes 40%.
According to EIH, the project will rank among the top five largest urea production complexes globally, with a planned capacity of up to three million metric tonnes per year. Construction is scheduled for completion within 40 months.
The facility will also feature pipelines transporting natural gas from the Calub and Hilala gas fields, with future plans for expansion into ammonia-based fertilisers.
Dr. Brook Taye, CEO of EIH, described the agreement as a milestone in Ethiopia’s quest for industrial self-sufficiency and agricultural transformation.
“This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization,” he said. “As the government’s strategic investment arm, EIH is proud to secure a 40% stake in what will be one of the world’s largest urea production facilities.”
He added that the project would strengthen energy security, boost agricultural productivity, and deliver “tremendous value” to Ethiopian farmers.
Prime Minister Abiy Ahmed also celebrated the deal, calling it a decisive step toward food sovereignty. In a message on X, he wrote:
“Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation. 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. It will create jobs, ensure reliable supply for farmers, and advance our path to food sovereignty.”
Dangote said the partnership reflects his commitment to industrialising Africa and ensuring food security across the continent.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security,” he stated. “We will leverage our decades of experience in large-scale projects to make this venture a cornerstone of Ethiopia’s industrial transformation.”
The fertiliser plant is expected to create thousands of jobs, reduce Ethiopia’s dependence on imports, and establish the country as a major supplier to East Africa.
Dangote already operates Africa’s largest fertiliser facility in Lagos, Nigeria, inaugurated in 2022. That plant produces three million tonnes of urea annually, turning Nigeria into a key exporter of the product.
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