Keypoints:
- $2.5bn plant to produce 3m tonnes
- Ethiopia to hold 40% stake in venture
- Dangote targets Africa’s food security
ETHIOPIA has signed a landmark agreement with Nigeria’s Dangote Group to establish a $2.5bn fertiliser manufacturing plant, Prime Minister Abiy Ahmed announced on Thursday.
The deal, unveiled in a post on social media platform X, marks one of the largest industrial investments in Ethiopia in recent years. Abiy said the plant, to be built in Gode town in the country’s southeast, will have an annual production capacity of 3 million metric tonnes of fertiliser.
Reducing reliance on imports
The project forms part of Nigerian billionaire Aliko Dangote’s long-stated ambition to reduce Africa’s dependence on imported fertilisers and strengthen the continent’s agricultural base.
The agreement was signed in Addis Ababa between state-owned Ethiopian Investment Holdings (EIH) and Dangote Group. Under the terms, Ethiopia will hold a 40 percent stake while Dangote retains 60 percent, EIH Chief Executive Brook Taye confirmed during the ceremony.
Shared vision for industrialisation
In a statement released by EIH on X, Dangote said the investment embodied ‘a shared vision to industrialise Africa and achieve food security across the continent’. He emphasised that the venture would support farmers across Africa by increasing access to locally manufactured fertiliser.
Strategic boost for Ethiopia
For Ethiopia, the deal is a strategic step towards reducing its heavy reliance on fertiliser imports and ensuring stable supplies for its agriculture-dependent economy. Abiy described the agreement as a milestone in Ethiopia’s industrialisation drive and a model for cross-African investment partnerships.
The Dangote Group, Africa’s largest cement producer, has expanded into fertilisers and petrochemicals in recent years, with major operations in Nigeria and beyond. Its latest move in Ethiopia underscores a continent-wide push to strengthen food security through domestic production.
