KEY POINTS
- Ethiopia is ready to get Dangote fertilizer plants.
- This is Dangote’s first fertilizer operation outside of Nigeria, broadening his African reach.
- It offers Ethiopia the opportunity to cut back on fertilizer imports, which presently cost more than $1 billion a year.
Africa’s richest man, Aliko Dangote, has struck a $2.5 billion deal with Ethiopia to build a massive fertilizer plant — one of the country’s biggest industrial investments yet.
The agreement, signed in Addis Ababa with state-owned Ethiopian Investment Holdings (EIH), gives Dangote Group a 60 percent stake while EIH holds 40 percent. The Ethiopian fertilizer plant, to be built in the Somali Regional State, is expected to produce three million metric tons of urea annually.
Ethiopia is ready to get Dangote fertilizer plants
This is Dangote’s first fertilizer operation outside of Nigeria, broadening his African reach. It offers Ethiopia the opportunity to cut back on fertilizer imports, which presently cost more than $1 billion a year. The plant will link to nearby natural gas fields through a dedicated pipeline, lowering import bills and paving the way for future exports.
Construction of the Ethiopian fertilizer plant will take about 40 months, with a price tag of $2.5 billion. The joint venture may later expand production to other fertilizers such as ammonium nitrate and ammonium sulfate.
Ethiopia eyes food security gains
The project promises stronger food security and relief for Ethiopia’s foreign exchange reserves. With more than 70 percent of Ethiopians working in agriculture, cutting reliance on imports could reshape the farming sector and eventually position the country as a net exporter.
Bloomberg estimates Dangote’s net worth at $28.7 billion, and this move adds to his portfolio of large-scale investments designed to plug Africa’s supply gaps.
Dangote fertilizer plant fits bigger vision
Dangote recently stepped down as chairman of Dangote Cement Plc but continues to push into new sectors. Fertilizers and oil refining have become central to his strategy of reducing Africa’s import dependence while driving industrial growth.
The Ethiopian project comes as Dangote Fertilizer Limited prepares for a possible listing on the Nigerian Exchange, where it could be valued above $3 billion. In Nigeria, his Lagos facility already Africa’s largest produces three million metric tons annually, more than double the country’s demand, creating room for regional exports.
