Ethiopia has signed a $2.5 billion agreement with the Dangote Group, led by Nigerian billionaire Aliko Dangote, to build one of the world’s largest fertilizer plants.
The new facility is expected to produce up to 3 million metric tons of urea fertilizer annually. Dangote Group will own 60% of the joint venture, while Ethiopian Investment Holdings holds 40%.
The project will be supplied with natural gas via a pipeline from Ethiopia’s Calub and Hilala gas fields.
Construction is expected to be completed in 40 months. Upon completion, the plant will rank among the top five single-site urea complexes globally.
There are also plans to expand into other fertilizers like ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate.
The Dangote Group, already Africa’s largest cement producer, is expanding rapidly into fertilizer and oil refining.
This new partnership with Ethiopia highlights the growing role of African capital and leadership in transforming the continent’s industrial landscape.
For Ethiopia, where agriculture makes up more than a third of GDP, the plant will provide critical support for rural communities, generate thousands of jobs, and reduce the nation’s dependence on imports.
Following the signing, Ethiopia’s government pledged to officially launch the project on site and deliver long-term value for farmers and the broader economy.
Aliko Dangote called the agreement “a pivotal moment in our shared vision to industrialize Africa and achieve food security.”
