Africa’s richest man, Aliko Dangote, has finalized a landmark $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, signed today in Addis Ababa between Dangote Group and state-owned Ethiopian Investment Holdings (EIH), marks a significant step toward boosting agricultural self-sufficiency in East Africa and reducing the continent’s reliance on imported fertilisers.
Under the deal, Dangote Group will hold a 60% stake in the joint venture, while EIH retains 40%.
The facility, designed to produce up to 3 million metric tons of urea and nitrogen-based fertilisers annually, will be connected via pipeline to the Calub and Hilala natural gas fields in southeast Ethiopia, ensuring a reliable supply of raw materials.
Construction is slated to begin soon and is expected to take approximately 40 months, positioning the plant to become operational by late 2028.
Once completed, it could rank Ethiopia among the top global producers of urea, addressing the country’s annual demand of around 765,000 metric tons while enabling exports to neighboring markets like Kenya, Somalia, Djibouti, and South Sudan.
Ethiopian Prime Minister Abiy Ahmed hailed the project as a “milestone in our journey toward food security and agricultural transformation.”
He emphasized its role in stabilizing supply chains disrupted by global events, including Red Sea shipping delays and geopolitical tensions.
Agriculture, which accounts for over one-third of Ethiopia’s GDP and employs nearly 70% of its workforce, has long been hampered by fertiliser shortages and import costs exceeding $1 billion annually, primarily from suppliers like Morocco and Russia.
“This partnership represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” Dangote stated during the signing ceremony.
The Nigerian billionaire, whose net worth exceeds $28 billion, builds on his group’s success with Africa’s largest fertiliser plant in Nigeria—a $2.5 billion facility launched in 2023 with matching 3 million-ton capacity.
Dangote, who already operates cement plants in 10 African countries including Ethiopia, described the investment as part of a broader strategy to leverage natural resources for agro-industrial growth.
“Africa must feed Africa. Together, we will strengthen food security, create jobs, and build a prosperous future,” he added on LinkedIn.
The project aligns with Ethiopia’s Homegrown Economic Reform II (HGER II) agenda, which prioritizes foreign direct investment in manufacturing and agriculture to foster inclusive growth.
By localizing production, it aims to cut foreign exchange pressures, stabilize prices for smallholder farmers, and spur job creation—potentially thousands in the underserved Somali region.
Gode’s strategic location along the Ethiopia-Djibouti corridor will facilitate efficient logistics, turning the area into a new industrial hub.
While the deal has been welcomed by development institutions like the African Union’s Comprehensive Africa Agriculture Development Programme (CAADP), challenges remain, including environmental safeguards, regional political dynamics, and ensuring affordability for farmers.
Dangote’s expanding role in Ethiopia—recently including a $400 million upgrade to his Mugher cement plant—signals growing investor confidence in the country’s reforms.
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