Africa’s Richest Man Fuels Ethiopia’s Growth with Fertilizer Superplant

Africa’s richest man, Aliko Dangote, has signed a $2.5 billion agreement with the Ethiopian government to establish a large-scale fertilizer plant aimed at transforming the country’s agriculture sector.

The deal, signed in Addis Ababa, will see Dangote Group hold a 60% stake in the project, while Ethiopian Investment Holdings (EIH) retains 40%. The plant will be located in Ethiopia’s eastern Somali region and is expected to produce 3 million tons of fertilizer annually once completed.

Prime Minister Abiy Ahmed described the project as a major step for Ethiopia’s food security, noting that it will provide local farmers with a steady fertilizer supply, reduce import dependency, and create jobs. Ethiopia currently spends about $1 billion annually on fertilizer imports.

Construction is projected to take 40 months, with the facility linked to the Calub and Hilala natural gas fields for feedstock supply. EIH emphasized that the project would significantly reduce foreign exchange pressures by cutting import reliance.

For Dangote, the investment extends his pan-African strategy, adding to his fertilizer hub in Nigeria and cement operations in more than 10 African countries. He said, “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 already has a long-standing presence in Ethiopia through his cement plant in Mugher, which he plans to expand with an additional $400 million investment to double its annual output.