Aliko Dangote, Africa’s wealthiest businessman, has entered into a major partnership with the Ethiopian government to establish a world-class fertilizer plant, a move set to transform the country’s agriculture-led economy.
The agreement, signed in Addis Ababa on Thursday, gives Dangote Group a 60% stake in the project, with the remaining 40% held by Ethiopian Investment Holdings (EIH). Valued at $2.5 billion, the facility will be located in Ethiopia’s eastern Somali region.
Ethiopian Prime Minister Abiy Ahmed hailed the initiative as a milestone in the country’s food security journey. He noted that the plant would create jobs, ease the burden on local farmers by guaranteeing fertilizer supply, and move Ethiopia closer to food sovereignty.
Agriculture contributes over one-third of Ethiopia’s GDP, yet the country spends nearly $1 billion each year on fertilizer imports. The new plant—designed to produce 3 million tons annually within 40 months of construction—will be directly connected to the Calub and Hilala natural gas reserves via pipeline.
EIH stated that the project will reduce Ethiopia’s reliance on imports, stabilize supply, and lessen pressure on the nation’s foreign reserves.
For Dangote, the investment marks another bold step in his African expansion drive. Already, his conglomerate operates cement plants in 10 countries and runs a large fertilizer complex in Nigeria. “This collaboration with Ethiopian Investment Holdings underscores our shared ambition to industrialize Africa and strengthen food security across the continent,” Dangote said.
Dangote has been active in Ethiopia for over a decade, beginning with his investment in a cement plant. Earlier in the year, he pledged $400 million to expand the Mugher cement plant, doubling its production capacity to 5 million tons annually. The Mugher facility, which came online in 2015, has encountered hurdles over the years, yet remains central to Dangote Cement’s growth strategy. The group aims to boost its overall continental production to 55 million tons.
In addition, a $19 million bagging plant was added to Mugher in 2015, enabling output of up to 120 million cement bags yearly, reinforcing Dangote’s long-term commitment to Ethiopia’s industrial sector.