Aliko Dangote, Africa’s richest man, has signed a landmark agreement with the Ethiopian government to construct a $2.5 billion fertilizer plant in the country’s eastern Somali region.
The plant, which will take approximately 40 months to complete, is expected to produce 3 million tons of fertilizer annually and will be linked to the Calub and Hilala natural gas fields in the southeast via pipeline.
Under the agreement, Dangote will own 60% of the facility, while the state-owned Ethiopian Investment Holdings (EIH) will hold the remaining 40%.
The project aims to significantly reduce Ethiopia’s reliance on fertilizer imports, provide a reliable local supply, and ease foreign exchange pressures.
Prime Minister Abiy Ahmed hailed the development as a milestone for Ethiopia’s food security drive, stating that it will create jobs, ensure a steady fertilizer supply for farmers, and mark a decisive step towards food sovereignty.
Dangote, who already operates cement businesses in 10 African countries and a 3 million-ton fertilizer hub in Nigeria, emphasized the partnership’s importance in industrializing Africa and achieving food security across the continent.
The Ethiopian government expects the project to boost crop yields, improve farmer incomes, and contribute to national food security objectives, ultimately positioning Ethiopia as a regional hub for fertilizer production.
