Aliko Dangote and Ethiopia Seal $2.5 Billion Fertilizer Plant Deal to Boost Food Security

Nigerian billionaire Aliko Dangote and the Ethiopian government have signed a landmark $2.5 billion agreement to construct a world-class fertilizer plant in Gode, Somali Regional State. The deal, finalized on Thursday, August 28, 2025, between Dangote Group and Ethiopian Investment Holdings (EIH), positions Ethiopia as a potential leader in Sub-Saharan Africa’s fertilizer production.

The facility, set to produce up to 3 million metric tons of urea annually, will rank among the world’s top five largest urea production complexes. Dangote Group will hold a 60% stake, while EIH retains 40%. The project, expected to be completed within 40 months, includes pipelines to transport natural gas from Ethiopia’s Calub and Hilala gas fields, ensuring a reliable supply for fertilizer production.

Ethiopian Prime Minister Abiy Ahmed hailed the agreement as a “milestone in our journey toward food security and agricultural transformation.” The plant aims to reduce Ethiopia’s $1 billion annual fertilizer import bill, create thousands of jobs, and establish the country as a regional export hub. “This project will ensure a reliable fertilizer supply for our farmers and mark a decisive step toward food sovereignty,” Abiy stated.

Aliko Dangote emphasized the project’s role in his vision for African industrialization: “This partnership represents a pivotal moment in our shared goal to industrialize Africa and achieve food security across the continent.” The Gode plant builds on Dangote’s existing $2.5 billion fertilizer complex in Nigeria, which has made the country a major urea exporter since 2022.

The strategic location of Gode, near the Ethiopia-Djibouti corridor, enhances logistical efficiency for both domestic distribution and regional exports. The initiative aligns with Ethiopia’s Homegrown Economic Reform II and the African Union’s Agenda 2063, aiming to boost agricultural productivity and reduce reliance on imports from countries like Morocco and Russia.

This deal marks a significant expansion of Dangote’s footprint in Ethiopia, where he already operates a cement plant. The project is expected to enhance crop yields, strengthen food security, and drive economic growth across East Africa.

The Dangote Group is concurrently nearing completion of its massive oil refinery in Nigeria, solidifying its shift from a purely conglomerate model to a focus on heavy industrial and petroleum-based industries across Africa. This new fertilizer plant in Ethiopia is seen as a strategic complement to those efforts, addressing a critical need in the continental agricultural value chain.

Analysts suggest the deal signals a renewed wave of intra-African investment, driven by pan-African industrialists like Dangote, and aligns with the goals of the African Continental Free Trade Area (AfCFTA) to boost internal trade and economic integration.