Nigerian billionaire businessman, Mr Aliko Dangote, has signed an agreement with the Ethiopian government to build a $2.5 billion fertiliser plant in the latest move to expand his empire.
The new plant, which will take about 40 months to complete, is expected to produce 3 million tons of fertiliser annually, and will be linked by pipeline to the Calub and Hilala natural gas fields in the southeast.
Signed in the capital city of Addis Ababa on Thursday, Mr Dangote will own 60 per cent of the facility under the agreement, while the remaining 40 per cent will be held by the state-owned Ethiopian Investment Holdings (EIH).
The project will be located in Ethiopia’s eastern Somali region.
EIH noted that the project would significantly cut Ethiopia’s dependence on fertiliser imports, providing a reliable local supply and reducing foreign exchange pressures.
Speaking at the signing, the country’s Prime Minister, Mr Abiy Ahmed, described the deal as a landmark for Ethiopia’s food security ambitions.
“This project will create jobs locally, ensure a reliable fertiliser supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty,” he said in a statement.
Dangote Industries already operates cement businesses in 10 African countries and runs a 3 million-ton fertiliser hub in Nigeria that began operations three years ago.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” Mr Dangote said.
Mr Dangote already has business investments across diverse sectors including cement manufacturing, sugar refining, salt and seasoning production, fertilizer manufacturing, and oil and gas (notably the 650,000 barrels per day Dangote Refinery), among others. He has also disclosed plans to play in other sectors including power generation and steel manufacturing, but some of these haven’t materialised yet due to allegations of monopoly.