Dangote, Ethiopia sign agreement to build $2.5bn fertiliser plant

Ethiopia has signed an agreement with Dangote Group to build a $2.5 billion fertiliser manufacturing plant in the East African country.

Ethiopian Prime Minister Abiy Ahmed announced this via a statement shared on X on Thursday, August 28, 2025.

The agreement was signed by Dangote Group and Ethiopian Investment Holdings (EIH).

The investment is part of Nigerian billionaire Aliko Dangote’s efforts to end Africa’s fertiliser imports.

To be located in Gode town in Ethiopia’s southeast, Abiy said the plant will produce 3 million metric tons of fertiliser a year.

The president stated: “Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation. Today, we signed the Fertilizer Complex Shareholder Investment Agreement between Ethiopian Investment Holdings and Dangote Group.

“With an investment of $2.5 billion, this mega project will produce up to 3 million metric tons of fertilizer annually, placing Ethiopia among the largest producers globally.

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“This project will create jobs locally, ensure a reliable fertilizer supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty. It strengthens Ethiopia’s competitiveness across the continent and reflects our commitment to executing strategic investments that serve our people and our future.

“Following today’s signing, we will officially launch the project on site. We have started this journey, and we will finish it for our farmers, for our economy, and for Ethiopia’s future.”

Ethiopia will have a 40% stake in the venture while Dangote Group will own 60%, EIH Chief Executive Brook Taye said at the signing ceremony in Addis Ababa.

An EIH statement on X quoted Dangote as saying that the investment represented a “shared vision to industrialise Africa and achieve food security across the continent”.

The Star