Africa’s richest man, Aliko Dangote, has struck a landmark $2.5 billion agreement with the Ethiopian government to build one of the world’s largest fertilizer plants, positioning Ethiopia as a regional hub for agricultural inputs while advancing his own pan-African industrial ambitions.
The deal, signed in Addis Ababa, will see Dangote Group hold a 60% stake in the project, with the remaining 40% owned by Ethiopian Investment Holdings (EIH), the state’s strategic investment arm. The facility will be built in the eastern Somali region town of Gode and is projected to produce three million metric tons of urea annually once completed within 40 months. Linked to the Calub and Hilala natural gas fields via a dedicated pipeline, the project will secure feedstock for decades of production.
A boost for Ethiopia’s food security
Agriculture contributes more than one-third of Ethiopia’s GDP and employs over 70% of its workforce, yet the country spends nearly $1 billion annually on fertilizer imports. Prime Minister Abiy Ahmed hailed the agreement as a decisive step toward food sovereignty.
“This project will create jobs locally, ensure a reliable fertilizer supply for our farmers who have long faced challenges, and mark a decisive step in our path to food security,” Abiy said.
EIH Chief Executive Dr. Brook Taye emphasized the project’s alignment with Ethiopia’s industrial strategy, noting that it would reduce foreign exchange pressures, stimulate economic growth, and strengthen the country’s role as a fertilizer supplier for the Horn of Africa.
Dangote’s continental expansion strategy
For Dangote, the investment underscores his push to expand beyond Nigeria, where his 3 million-ton fertilizer hub has already reshaped domestic supply. With cement operations in 10 African countries and plans to scale continental cement capacity to 55 million tons annually, the billionaire industrialist has consistently pursued projects that bridge infrastructure gaps and reduce Africa’s dependence on imports.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” Dangote said in a statement.
His presence in Ethiopia is not new. Dangote Cement entered the market in 2015 with the Mugher plant near Addis Ababa, a facility initially producing 2.5 million tons of cement annually. Despite early operational challenges, the group invested an additional $19 million in a bagging plant and is now pursuing a $400 million expansion to double Mugher’s output to five million tons.
The fertilizer project, however, represents an even bigger bet — one that could reposition Ethiopia as a continental leader in agribusiness inputs.
Industrial and regional impact
With a total capacity placing it among the world’s top five urea production complexes, the Gode plant is designed not only to serve Ethiopia but also to supply neighboring countries. By reducing reliance on imported fertilizers, the project will free up foreign reserves, stabilize input costs, and potentially increase crop yields for millions of farmers across East Africa.
The complex also has provisions for future expansion into ammonia-based fertilizers such as ammonium nitrate and ammonium sulfate, broadening Ethiopia’s production portfolio and enhancing regional competitiveness.
Chairman of Access Holdings and former Dangote ally Aigboje Aig-Imoukhuede, commenting on the significance, noted that projects of this scale represent a “cornerstone of Africa’s industrial future” — leveraging natural resources to create value-added industries rather than exporting raw commodities.
Looking ahead
As Ethiopia grapples with foreign exchange shortages, high fertilizer import bills, and food insecurity pressures, the Dangote-EIH venture offers a long-term structural solution. Thousands of jobs are expected during construction and operation, while ancillary industries — from logistics to packaging — will also benefit.
For Dangote, the venture adds to his legacy of building Africa’s largest industrial plants across cement, fertilizers, and petrochemicals. For Ethiopia, it signals a bold bet on self-sufficiency and industrialization. If executed on schedule, the Gode complex could emerge not only as a backbone of Ethiopia’s farm economy but also as a beacon of Africa’s capacity to finance, build, and operate mega-projects in partnership with its own champions.
