Dangote, Ethiopia Ink $2.5bn Deal for World’s Largest Fertiliser Plant

A Africa’s richest man, Aliko Dangote, has sealed a $2.5 billion partnership with the Ethiopian Government to build one of the world’s largest single-site fertiliser plants in Gode, Somali Regional State.

The landmark deal, signed on Thursday between Dangote Group and Ethiopian Investment Holdings (EIH), marks a major step in Ethiopia’s drive toward agricultural transformation and industrial self-sufficiency. Under the agreement, Dangote Group will hold 60 per cent equity while EIH, the government’s strategic investment arm, will retain 40 per cent.

EIH, in a statement cited by Punch Online, said the facility would rank among the top five largest urea production complexes globally, with an annual capacity of up to three million metric tonnes.

“The ambitious project will establish one of the world’s largest single-site urea fertilizer production complexes, with production facilities boasting a combined capacity of up to three million metric tonnes per annum,” the statement read.

The $2.5 billion project, expected to be completed within 40 months, will also feature pipelines transporting natural gas from the Calub and Hilala gas fields, with provisions for future expansion into ammonia-based fertilisers.

Chief Executive Officer of EIH, Dr. Brook Taye, described the deal as a milestone for Ethiopia’s economic future.
“This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization. As the strategic investment arm of the Government of Ethiopia, EIH is proud to secure a 40% stake in what will be one of the world’s largest urea production facilities,” he said.

He added that the project would ensure energy security, boost productivity, and deliver “tremendous value to Ethiopian farmers.”

Ethiopian Prime Minister, Abiy Ahmed, also hailed the agreement in a statement on X, calling it a decisive step toward food sovereignty.
“Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation. Today, we signed the Fertilizer Complex Shareholder Investment Agreement between Ethiopian Investment Holdings and Dangote Group. With an investment of $2.5 billion, this mega project will produce up to three million metric tonnes of fertilizer annually, placing Ethiopia among the largest producers globally,” he said.

Abiy noted that the plant would create jobs, ensure reliable fertiliser supply for farmers, and reduce Ethiopia’s reliance on imports.

On his part, Dangote said the partnership aligned with his vision to industrialise Africa.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent. We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region,” he stated.

He further stressed that the 60-40 partnership structure guarantees “strong Ethiopian participation” in the project.

The plant is expected to create thousands of jobs, cut Ethiopia’s fertiliser import bill, and position the country as a major export hub in East Africa.

Dangote already operates Africa’s largest fertiliser facility in Lagos, Nigeria, inaugurated in 2022, which produces three million tonnes of urea annually and has turned Nigeria into a key exporter of the product.