Ethiopia is preparing to host one of Africa’s largest fertiliser plants after Nigerian conglomerate Dangote Group invested $2.5 billion in the project.
On Thursday in Addis Ababa, both parties signed the agreement to build the facility in the country’s eastern Somali region.
Boost For Ethiopia’s Farmers
Under the deal, Dangote takes a 60% stake, while Ethiopian Investment Holdings (EIH) controls the remaining 40%.
Within about 40 months, the plant will begin producing three million tonnes of fertiliser each year.
Moreover, engineers will connect it by pipeline to the Calub and Hilala natural gas fields in the southeast, ensuring a reliable flow of raw material.
As a result, the Ethiopian government aims to cut reliance on imports.
Fertiliser imports currently drain foreign reserves and leave farmers exposed to global price shocks.
Therefore, EIH stressed that the project will stabilise supply, protect reserves, and expand local production.
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At the signing ceremony, Prime Minister Abiy Ahmed praised the deal and called it “transformative for Ethiopia’s agriculture.”
He highlighted how the project will create thousands of jobs, provide farmers with steady access to fertiliser, and push the nation closer to food sovereignty.
Building Africa’s Future
Meanwhile, Dangote Group continues to broaden its continental reach.
The company already runs cement plants in ten African countries and operates a three-million-tonne fertiliser facility in Nigeria.
Consequently, the Ethiopian project strengthens its strategy to industrialise Africa and drive food security across the continent.
Looking ahead, Ethiopia now positions itself as a future hub for fertiliser production, turning today’s challenge into tomorrow’s growth opportunity.
