Africa’s leading industrialist, Aliko Dangote, has taken another bold step in his mission to industrialize the continent, this time with a $2.5 billion investment in Ethiopia’s agriculture sector. 

The Nigerian billionaire has signed a deal with the Ethiopian government to establish a state-of-the-art fertilizer plant that could transform the country’s farming landscape.

The agreement, sealed in Addis Ababa on Thursday, gives Dangote a 60% stake in the project, while Ethiopian Investment Holdings (EIH), the state-owned sovereign wealth body, will hold the remaining 40%. 

The plant will be built in the Somali region of eastern Ethiopia and is projected to take just over three years to complete.

A lifeline for Ethiopian farmers

Prime Minister Abiy Ahmed hailed the deal as a milestone for the country’s food security drive. For years, Ethiopia has spent around $1 billion annually on fertilizer imports, a heavy burden for a nation where agriculture makes up more than a third of its GDP.

“This project will not only provide a steady supply of fertilizer to our farmers but also reduce our reliance on imports and create thousands of jobs,” Abiy said. “It is a decisive move toward food sovereignty.”

operational, the facility is expected to produce up to three million tons of fertilizer every year. It will be connected to the Calub and Hilala natural gas fields via pipeline, ensuring steady access to raw materials.

Strengthening Dangote’s pan-African footprint

For Dangote, the Ethiopian fertilizer project is part of a much bigger picture. The billionaire already operates a massive fertilizer hub in Nigeria, which came online three years ago, and runs cement businesses across 10 African countries.

Speaking on the deal, he described it as more than just an investment. “This partnership with EIH underscores our shared vision to boost Africa’s industrial capacity and secure sustainable food systems for future generations,” he said.

Dangote’s presence in Ethiopia is not new. A decade ago, he made his entry through cement production, commissioning the Mugher plant in 2015. Despite early challenges, the facility currently producing 2.5 million tons annually has remained a strategic part of his continental cement empire.

Earlier this year, he announced an additional $400 million expansion to double its output to five million tons.

Why it matters

The new fertilizer plant is expected to ease Ethiopia’s foreign exchange strain by cutting import dependence, while also making fertilizers more affordable and accessible to farmers. 

With agriculture employing a significant portion of Ethiopia’s population, the ripple effect on food security and rural incomes could be immense.

For Dangote Group, the project reaffirms its long-term vision of spreading beyond Nigeria into other African markets. Alongside its oil refinery, cement plants, and fertilizer businesses, the Ethiopian venture cements Dangote’s status not just as Africa’s richest man, but as one of its most ambitious industrialists.

If successful, the $2.5 billion plant could become one of the cornerstones of Ethiopia’s economic transformation anchoring growth in a sector that feeds the nation and fuels its economy.