Aliko Dangote’s conglomerate has entered into a multibillion-dollar agreement with the Ethiopian government. The deal, signed in the capital city of Addis Ababa, will see the construction of a massive $2.5 billion fertiliser production plant.
Under the terms of the agreement, the Dangote Group will hold a controlling 60% stake in the new venture, while the remaining 40% will be owned by Ethiopian Investment Holdings, the nation’s state-owned sovereign wealth fund.
The facility is slated to be built in the eastern Somali region of Ethiopia.
The project, which is expected to take approximately forty months to complete, is designed to have a substantial annual production capacity of three million tons of fertiliser.
A key feature of its operation will be a dedicated pipeline connecting it directly to the Calub and Hilala natural gas fields located in the country’s southeast, ensuring a steady and cost-effective supply of feedstock.
Officials from Ethiopian Investment Holdings highlighted that this strategic investment is poised to dramatically reduce the country’s heavy reliance on imported fertiliser.
This will not only guarantee a reliable local supply for farmers but also alleviate significant pressure on Ethiopia’s foreign exchange reserves.
Ethiopian Prime Minister Abiy Ahmed hailed the agreement as a landmark achievement crucial for the nation’s long-term food security objectives.
He stated that the project would generate substantial local employment, provide a stable supply of fertiliser to farmers who have historically faced shortages, and mark a decisive stride toward achieving food sovereignty.
For the Dangote Group, this expansion builds upon its existing presence in Africa, which includes cement operations in ten countries and a similarly-sized three-million-ton fertiliser plant in Nigeria that commenced operations three years ago.
Dangote described the partnership as a pivotal moment in the shared continental vision of industrialising Africa and securing food self-sufficiency.
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cc: Channels TV
