Ethiopia has secured a major investment partnership with Nigeria’s Dangote Group, one of Africa’s largest conglomerates, to build a $2.5 billion fertiliser plant in the Somali Region. The project is expected to boost local production, cut import costs, and strengthen food security across East Africa.
Ethiopia’s Fertiliser Challenge
For years, Ethiopia has relied heavily on imports, spending nearly $1 billion annually on fertiliser to support its agriculture sector. This dependence has strained foreign currency reserves and left farmers vulnerable to global price fluctuations.
The planned facility will produce up to 3 million tonnes of urea each year, meeting Ethiopia’s domestic needs and creating surplus for export. Officials say the move could transform Ethiopia into a regional agricultural hub.
Partnership Breakdown
The agreement gives Dangote Industries a 60% ownership stake, while Ethiopian Investment Holdings (EIH) will hold 40%. Construction of the plant is projected to take around 40 months.
Prime Minister Abiy Ahmed hailed the deal as a historic step:
“This investment ensures Ethiopia reduces dependency on imports while building long-term food security.”
Aliko Dangote, Africa’s richest man and chairman of Dangote Group, said:
“Our mission is to empower Africa with the capacity to feed itself, and Ethiopia is a vital part of that journey.”
Wider Economic Impact
The fertiliser plant is expected to:
- Create thousands of direct and indirect jobs.
- Support infrastructure development in the Somali Region, including transport, energy, and logistics.
- Expand export opportunities to neighbours such as Kenya, Somalia, South Sudan, and Sudan.
Analysts believe this project could raise crop yields for millions of smallholder farmers, helping Ethiopia achieve food sovereignty while positioning itself as a major player in the regional fertiliser market.
Africa’s Push for Self-Sufficiency
The deal reflects a wider African movement to reduce reliance on global supply chains. Rising fertiliser costs, currency pressures, and geopolitical disruptions have pushed countries to develop local industries.
Dangote, already operating the world’s largest single-train oil refinery in Nigeria, is now cementing his role in agriculture-driven industrialisation across Africa.
Conclusion
The $2.5 billion Dangote fertiliser plant in Ethiopia is more than an investment—it is a strategic shift for food security, trade, and economic growth. If delivered on time, Ethiopia could not only secure its farming sector but also emerge as a fertiliser exporter for East Africa, reshaping the region’s agricultural future.