The government of Ethiopia has signed an agreement with Nigeria’s Dangote Group to build a 3 million tons per annum fertiliser manufacturing plant valued at $2.5 billion.
Ethiopia’s Prime Minister Abiy Ahmed disclosed this development in a post on Thursday on his verified X handle saying the deal was signed in Addis Ababa between Ethiopian Investment Holdings (EIH) and Dangote Group.
“Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation,” Prime Minister Ahmed said.
“With an investment of $2.5 billion, this mega project will produce up to 3 million metric tons of fertiliser annually, placing Ethiopia among the largest producers globally.”
Dangote Group will own 60% stake in the venture while Ethiopia will have a 40% stake in the venture, EIH Chief Executive Brook Taye.
The Prime Minister says the development strengthens Ethiopia’s competitiveness across the continent and reflects our commitment to executing strategic investments that serve our people and our future.
“We have started this journey, and we will finish it for our farmers, for our economy, and for Ethiopia’s future,” he said.
On his part, Aliko Dangote, the billionaire owner of the Nigerian conglomerate said the investment represents a “shared vision to industrialise Africa and achieve food security across the continent”
He is the biggest fertiliser manufacturer in Nigeria, having completed a 3 million tons per annum urea plant in 2021.
The plant, valued at $2.5 billion, is the single largest in the world.
What you should know
Since commissioning its mega refinery in Nigeria, the Dangote Group has been expanding its footprint into new markets on the continent.
As of March, the 650,000 bpd refinery accounted for 41% of the total fuel supplies in Nigeria.
The plant has significantly reduced Nigeria’s fuel imports, including exports to several African countries.
Prior to Ethiopia, Dangote in July unveiled plans to construct a 1.6 million barrels storage facility in Namibia aimed at supplying fuel to Botswana, Namibia, Zambia and Zimbabwe.
Dangote also eyes leveraging Namibia’s phosphate deposits to scale up fertiliser production.
“Namibia is a country with the right environment and resources for industrial development. We’re actively looking at opportunities in oil, gas, and phosphate to support our expansion across Africa,” Aliko Dangote said.
However, the Ethiopian government says the planned fertiliser project marks a decisive step towards the country’s path to food sovereignty and will create jobs locally and ensure reliable supplies for farmers.
The fertiliser project will be officially launched on-site in the coming days in Gode town in Ethiopia’s southeast.
