Africa’s richest man, Aliko Dangote, has sealed a multibillion-dollar agreement with the Ethiopian government to build a fertilizer plant that could reshape the country’s agriculture-driven economy.
Under the agreement signed in Addis Ababa on Thursday, Dangote will own 60% of the facility, while the remaining 40% will be held by the state-owned Ethiopian Investment Holdings (EIH). The project, estimated at $2.5 billion, will be located in Ethiopia’s eastern Somali region.
Prime Minister Abiy Ahmed described the deal as a landmark for Ethiopia’s food security ambitions. “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,” he said in a statement.
Agriculture accounts for more than one-third of Ethiopia’s GDP, according to World Bank data, yet the country spends about $1 billion annually importing fertilizers.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” Dangote said.
Dangote has been active in Ethiopia for over a decade, starting with a cement plant investment. Earlier this year, Dangote announced a $400 million plan to push a second production line at the Mugher cement plant in Ethiopia, a move expected to double the facility’s annual output to 5 million tons.