Nigerian businessman, Aliko Dangote has signed an agreement with the Ethiopian government to build a $2.5 billion fertiliser plant.
In the agreement signed in Addis Ababa on Thursday, Dangote will own 60% of the facility under the agreement, while the remaining 40% will be held by the state-owned Ethiopian Investment Holdings (EIH).
The project will be located in Ethiopia’s eastern Somali region.
The new plant, which will take about 40 months to complete, is expected to produce 3 million tons of fertiliser annually.
It will be linked by pipeline to the Calub and Hilala natural gas fields in the southeast of Ethiopia.
According to EIH, the project will significantly cut Ethiopia’s dependence on fertiliser imports, providing a reliable local supply and reducing foreign exchange pressures.
Prime Minister Abiy Ahmed described the deal as a landmark for Ethiopia’s food security ambitions. “This project will create jobs locally, ensure a reliable fertiliser supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty,” he said in a statement.
Dangote already operates cement businesses in 10 African countries and runs a 3 million-ton fertiliser hub in Nigeria that began operations three years ago.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” Dangote said.
