Nigeria’s Dangote Group has signed a $2.5 billion agreement with Ethiopia to build a fertiliser plant in Gode, aimed at boosting food security.
The deal was signed on Wednesday in Addis Ababa between Aliko Dangote, President of Dangote Industries Limited, and Ethiopian Investment Holdings. The facility, which will cost $2.5 billion, is expected to produce three million metric tonnes of fertiliser annually once completed.
According to reports from Reuters, the plant will be developed as a joint venture, with Dangote Group holding 60% equity and Ethiopian Investment Holdings retaining 40%. The project will be linked to nearby natural gas reserves through pipelines to secure steady input for production.
Prime Minister Abiy Ahmed described the agreement as historic for Ethiopia’s agriculture sector.
He emphasised that the project will reduce the country’s $1 billion annual fertiliser import bill while creating jobs and fostering self-sufficiency.
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The development marks Dangote Group’s largest investment outside Nigeria and signals its continued expansion into key African markets.
Dangote noted the project will not only meet Ethiopia’s needs but also position the country as a potential exporter in the region.
Industry analysts highlighted that once the plant comes on stream within the next 40 months, Ethiopia could join the top five global producers of urea fertiliser, further reinforcing its agricultural economy.
“This is a project that symbolises Africa’s industrial future,” Dangote said during the signing, adding that the plant would drive growth and sustainability across the continent.
