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Dangote, Ethiopia Seal $2.5bn Deal to Build One of World’s Largest Fertiliser Plants

In a landmark move to boost Africa’s food security, the Dangote Group and the Government of Ethiopia have struck a $2.5 billion partnership to construct a massive fertiliser complex in Gode, Somali Regional State, designed to end the continent’s reliance on imported fertilisers.

The agreement, signed in Addis Ababa on Wednesday, gives Ethiopia’s state-owned Ethiopian Investment Holdings (EIH) a 40% equity stake, while Dangote Group retains 60% ownership.

When completed, the project will be capable of producing 3 million metric tons of urea annually, placing it among the top five largest fertiliser production sites in the world.

A Bold Industrial Leap for Ethiopia

EIH described the project as one of the largest industrial investments in Ethiopia’s history, with development covering everything from production plants to a new pipeline network that will transport natural gas from the Hilala and Calub fields to the Gode facility.

The venture will also explore future expansions into ammonia-based fertilisers like ammonium nitrate and ammonium sulfate, further positioning Ethiopia as a regional fertiliser hub.

Construction is expected to take 40 months, with thousands of jobs projected during and after completion.

“This transformative project underscores our commitment to industrialise Africa and ensure food security,” said Aliko Dangote, Chairman of Dangote Group. “Gode’s strategic location and Ethiopia’s abundant gas reserves make it ideal for a facility of this scale. Our 60-40 partnership reflects a shared vision and strong Ethiopian participation.”

Food Security and Farmer Prosperity

Agriculture employs more than 70% of Ethiopia’s population, yet the nation relies heavily on fertiliser imports. Officials say the new complex will dramatically reduce dependency, lower costs, and give farmers reliable access to high-quality fertilisers.

EIH CEO Brook Taye hailed the deal as a milestone in Ethiopia’s path to industrial self-sufficiency and agricultural modernisation.

“This project aligns with our national development priorities. By harnessing our domestic gas reserves, Ethiopia will secure energy and cost competitiveness for decades,” Taye said. “It will deliver tremendous value to farmers, improve productivity, and generate significant economic benefits for the nation.”

Regional Impact Beyond Ethiopia

Beyond Ethiopia’s borders, the Gode complex could serve as a reliable fertiliser supplier to neighbouring East African countries, cutting down on import costs and boosting crop yields across the region.

Experts note that the venture combines Dangote’s experience in mega-industrial projects with EIH’s deep local market knowledge and state-owned enterprise portfolio, which includes Ethiopian Airlines, Ethio Telecom, and Commercial Bank of Ethiopia.

For Ethiopia, the deal is more than just an investment — it’s a strategic pivot toward food security, industrial strength, and regional economic leadership.

By Haruna Yakubu Haruna