Africa’s richest man, Aliko Dangote, has signed a landmark agreement with the Ethiopian government to construct a $2.5 billion fertiliser plant in the country’s eastern Somali region.
The deal, signed in Addis Ababa on Thursday, gives Dangote a 60 per cent stake in the project, while the state-owned Ethiopian Investment Holdings (EIH) will control the remaining 40 per cent.
According to details of the agreement, the plant will take about 40 months to complete and is expected to produce 3 million tons of fertiliser annually. It will be connected by pipeline to the Calub and Hilala natural gas fields in southeast Ethiopia, ensuring a steady supply of raw materials.
EIH said the project will play a crucial role in reducing the country’s reliance on fertiliser imports and easing foreign exchange pressures.
Prime Minister Abiy Ahmed hailed the development as a milestone for Ethiopia’s food security drive.
“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.
Dangote, who already operates cement businesses in 10 African countries and a 3 million-ton fertiliser hub in Nigeria, described the partnership as central to Africa’s industrial future.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” he stated.
