Nigeria’s Dangote Group has signed a major deal with Ethiopia to establish a $2.5 billion fertiliser plant in the country’s southeast, marking a significant step toward boosting Africa’s agricultural capacity.
The agreement, sealed on August 28, 2025 in Addis Ababa, was attended by Ethiopian Prime Minister Abiy Ahmed and Ethiopian Investment Holdings (EIH) CEO Brook Taye. Under the terms, Dangote will hold a 60% stake, while EIH will control the remaining 40%.
Located in Gode, the factory will have the capacity to produce three million metric tons of fertiliser annually, making it one of the largest single-site production facilities of its kind. The project will be supplied with natural gas through a dedicated pipeline from Ethiopia’s Hilal and Calub reserves, ensuring steady feedstock for production.
Dangote Group Chairman Aliko Dangote described the venture as a reflection of a shared vision to industrialise Africa and secure food self-sufficiency. Construction is expected to take around 40 months, with completion projected for late 2028 or early 2029.
Beyond urea fertiliser, the complex will also lay the foundation for the future production of other key inputs such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate.
Ethiopia currently imports large volumes of fertiliser to support its agriculture sector. By housing such a facility, the country aims to strengthen local production, reduce dependency on imports, and position itself as a potential exporter within Africa.
The project is also expected to create jobs and spur infrastructure development in Ethiopia’s Somali Regional State, contributing to the broader economic transformation goals outlined by the government.
