Ethiopia has signed a landmark agreement with Nigeria’s Dangote Group to develop a $2.5 billion fertiliser manufacturing plant.
This announcement was made by Prime Minister Abiy Ahmed on Thursday, via social media platform X.
This major investment also supports billionaire Aliko Dangote’s mission to reduce Africa’s reliance on imported fertiliser and strengthen the continent’s agricultural sector.
As a result, the partnership is expected to deliver substantial economic growth and improve food security across the region.
Plant Location and Production Capacity
The fertiliser plant will be built in Gode town, located in Ethiopia’s southeast.
According to Prime Minister Abiy Ahmed, the facility is expected to produce 3 million metric tons of fertiliser annually.
Consequently, this production capacity aims to boost agricultural output, increase crop yields, and strengthen food security in Ethiopia and neighboring countries. In addition, the project will contribute to creating a more resilient agricultural supply chain.
Investment Structure and Partnership Details
The agreement was formalized between state-owned Ethiopian Investment Holdings (EIH) and Dangote Group.
Under the deal, EIH will retain a 40% stake, while Dangote Group will hold 60%.
Moreover, Brook Taye, Chief Executive of EIH, emphasized that the project will accelerate Ethiopia’s industrialisation, create jobs, and stimulate economic growth.
At the same time, the initiative prioritizes ensuring that local communities directly benefit from its operations.
Impact on Africa’s Food Security
Aliko Dangote described the initiative as a “shared vision to industrialise Africa and achieve food security across the continent.”
Additionally, experts highlight that the plant will reduce Africa’s fertiliser import dependency, lower costs for farmers, and strengthen the agricultural supply chain.
By producing fertiliser locally, the project will guarantee the availability of essential agricultural inputs for farmers throughout the region.
Future Prospects
The Ethiopia-Dangote partnership represents a major step toward expanding industrial capacity in Africa.
Therefore, local fertiliser production will position Ethiopia as a key player in addressing regional food security challenges, supporting sustainable agriculture, and fostering long-term economic development.
Furthermore, analysts predict that similar partnerships could emerge in other African nations, encouraging further industrial investments across the continent.
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