Dangote to build $2.5bn fertiliser plant in Ethiopia, one of world’s largest

Aliko Dangote has signed a $2.5 billion agreement with the Ethiopian government to build one of the world’s largest single-site fertiliser plants in Gode, Somali Regional State.

The deal was sealed on Thursday between Dangote Group and Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, and will see Dangote Group take a 60% stake, while EIH holds 40%.

The EIH disclosed that the facility will be among the top five largest urea production complexes globally, with an annual capacity of up to three million metric tonnes. The project is expected to be completed within 40 months.

The complex will also include pipelines to transport natural gas from the Calub and Hilala gas fields, with provisions for future expansion into ammonia-based fertilisers, the firm said.

“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, CEO of EIH. “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 initiative would boost energy security, enhance productivity, and deliver “tremendous value to Ethiopian farmers.”

Ethiopian Prime Minister Abiy Ahmed hailed the partnership as a major step toward food sovereignty. In a post 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.”

Aliko Dangote described the deal as central to his mission of industrialising Africa: “This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent. We will leverage our decades of experience in large-scale projects to make this venture a cornerstone of Ethiopia’s industrial transformation.”

The plant is expected to generate thousands of jobs, reduce Ethiopia’s dependence on fertiliser imports, and position the country as a major exporter across East Africa.

Dangote already operates Africa’s largest fertiliser plant in Lagos, Nigeria. Commissioned in 2022, it produces three million tonnes of urea annually and has turned Nigeria into a significant exporter of the product.