Ethiopia Strikes $2.5B Deal with Dangote to Build World-Class Fertilizer Plant

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Ethiopia has signed a landmark $2.5 billion agreement with Nigeria’s Dangote Group to establish a world-class urea fertilizer complex in Gode, Somali Region. The deal, hailed as a game-changer for the Horn of Africa nation, aims to transform Ethiopia into a global fertilizer powerhouse.

The signing ceremony, held on August 28 in Addis Ababa, was witnessed by Prime Minister Abiy Ahmed, along with executives from Ethiopian Investment Holdings (EIH) and Dangote Group. Under the partnership structure, Dangote will hold a 60% stake, while EIH retains the remaining 40% ownership.

Once completed, the facility is projected to produce up to 3 million metric tons of urea per year, cementing Ethiopia’s position among the largest single-site fertilizer producers in the world. The project also includes essential infrastructure such as pipelines to transport natural gas from the Calub and Hilala reserves, ensuring sustainable and cost-efficient operations.

Beyond industrial scale, the project carries far-reaching socio-economic benefits. Ethiopia currently relies heavily on imported fertilizers, straining foreign reserves and increasing costs for farmers. By producing locally, the Dangote-EIH partnership is expected to slash fertilizer imports, stabilize prices, create thousands of jobs, and significantly boost agricultural productivity in a country where over 70% of the population depends on farming.

The deal also strengthens Dangote Group’s pan-African industrial footprint, following its cement and fertilizer successes in Nigeria. For Aliko Dangote, Africa’s richest man, the Ethiopian venture is more than an investment—it’s a step toward industrializing Africa and ensuring food security across the continent.

Observers note that the project symbolizes Ethiopia’s growing drive for self-reliance in critical sectors, while also showcasing the potential of intra-African business partnerships to reshape global markets.