Ethiopia has signed a landmark agreement with Nigeria’s Dangote Group to construct a $2.5 billion fertiliser plant in the country’s southeast, Prime Minister Abiy Ahmed announced on Thursday.
The facility, to be built in Gode town, will have an annual production capacity of 3 million metric tons, making it one of the largest in Africa. Officials say the project aims to boost Ethiopia’s agricultural sector while contributing to the continent’s broader goal of reducing dependence on fertiliser imports.
The agreement was signed between state-owned Ethiopian Investment Holdings (EIH) and Dangote Group. Under the deal, Dangote will hold a 60% stake, while Ethiopia will own 40%. EIH CEO Brook Taye described the partnership as a “strategic investment in food security and industrialisation.”
Africa’s richest man, Aliko Dangote, said the project aligns with a shared vision “to industrialise Africa and achieve food security across the continent.”
The plant is expected to play a critical role in supporting Ethiopia’s efforts to modernise agriculture, strengthen self-sufficiency, and position itself as a hub for fertiliser supply in the Horn of Africa.