Dangote Signs $2.5 Billion Fertilizer Deal with Ethiopian Government

Africa’s richest man, Aliko Dangote, has entered a multibillion-dollar agreement with the Ethiopian government to build a state-of-the-art fertilizer plant, a project expected to transform the country’s agriculture-driven economy.

The deal, signed Thursday in Addis Ababa, gives Dangote 60% ownership of the facility, while the remaining 40% stake will be held by Ethiopian Investment Holdings (EIH). The plant, valued at $2.5 billion, will be located in Ethiopia’s eastern Somali region.

Prime Minister Abiy Ahmed hailed the agreement as a milestone for Ethiopia’s long-term food security:

“This project will create jobs locally, ensure a reliable fertilizer supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty.”

Boost for Ethiopia’s Agriculture

Agriculture contributes over one-third of Ethiopia’s GDP, yet the country spends nearly $1 billion annually on fertilizer imports, according to the World Bank.

• The new plant will take about 40 months to complete.
• It is projected to produce 3 million tons of fertilizer annually.
• The facility will be connected by pipeline to Ethiopia’s Calub and Hilala natural gas fields in the southeast.
• EIH said the project will reduce Ethiopia’s reliance on costly imports and ease foreign exchange pressures.

For Dangote, the investment strengthens his pan-African growth strategy, adding to his cement operations in 10 countries and his 3 million-ton fertilizer hub in Nigeria, which began operations three years ago.

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” Dangote said.

Dangote’s Growing Ethiopian Footprint

Dangote has been a key player in Ethiopia’s economy for over a decade, beginning with his cement investment.

• In 2015, the Mugher cement plant began operations with a capacity of 2.5 million tons per year.
• In 2015, Dangote also invested $19 million to add a bagging plant, enabling Mugher to produce 120 million bags annually.
• Earlier in 2025, Dangote announced a $400 million expansion to add a second production line at Mugher, expected to double output to 5 million tons annually.
• Despite operational challenges, Dangote Cement remains central to the company’s plan to raise its total African cement capacity to 55 million tons per year.