Aliko Dangote has signed a multibillion-dollar agreement with the Ethiopian government to establish a new fertilizer plant worth $2.5 billion.
The agreement was signed in Addis Ababa on Thursday, under which Dangote will own 60% of the plant, while the Ethiopian government, through Ethiopian Investment Holdings (EIH), will hold the remaining 40%. According to the plan, the plant will be located in the Somali region in eastern Ethiopia.
Construction is expected to take about 40 months to complete, with the facility set to produce 3 million tons of fertilizer annually. The plant will be linked to the Calub and Hilala gas fields in the southeast through a gas pipeline.
EIH stated that the project will reduce Ethiopia’s dependence on fertilizer imports, ensure local supply of quality fertilizer, and ease the pressure on foreign exchange.
Prime Minister Abiy Ahmed described the deal as a major step toward achieving the country’s food security goals. He said: “This project will create jobs locally, guarantee our farmers—who have long struggled—access to adequate fertilizer, and mark a significant step toward self-sufficiency in food production.”
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