Dangote Expands, Signs Deal to Build $2.5 Billion Fertiliser Plant in Ethiopia

Dangote Expands, Signs Deal to Build $2.5 Billion Fertiliser Plant in Ethiopia

  • The Dangote Group and the Ethiopian government have signed a deal to build a $2.5 billion fertiliser plant in the country
  • The multi-billion-dollar deal was announced by the Ethiopian Prime Minister, Abiy Ahmed Ali, on Thursday, August 28, 2025
  • Ali said the deal was between Dangote Group and Ethiopian Investment Holdings and will make the country an agricultural hub

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Dangote Group is expanding its footprint to other African countries, especially East Africa.

The Ethiopian government has announced it has inked a $2.5 billion fertiliser complex shareholder investment deal with Dangote Group.

Dangote Group expands into Ethiopia with fertiliser plant
Aliko Dangote's pan-African vision drives a multi-billion-dollar fertiliser plant in Ethiopia. Credit: Bloomberg/Contributor
Source: Getty Images

Ethiopia’s agricultural ambition

According to a statement on Thursday, August 28, 2025, the Ethiopian Prime Minister, Abiy Ahmed Ali, said the gigantic project will produce about three million metric tons of fertiliser annually.

Ali said the development marks a new journey in the country’s march toward food security and agricultural revolution.

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He stated that his country signed the Fertiliser Complex Shareholder Investment Agreement between Ethiopian Investment Holdings and Dangote Group.

“With an investment of $2.5 billion, this mega project will produce up to 3 million metric tons of fertiliser annually, placing Ethiopia among the largest producers globally.

Massive job creation

The Prime Minister said the project will create jobs, ensure a reliable fertiliser supply to farmers, marking a decisive step towards food security and agricultural sovereignty.

He disclosed that the deal underscores Ethiopia’s commitment to strategic investments for food security and prosperity.

Dangote’s Africa expansion

According to a report by TheCable, in June, the president of the Dangote Group, Aliko Dangote, said Africa will be self-reliant in fertiliser supply within 40 months.

In a separate statement, the billionaire said his conglomerate is targeting $7 million daily revenue from fertiliser sales in the next two years.

Dangote Group’s expansion into Ethiopia shows the determination of the conglomerate to industrialise the continent and make it less reliant on imports.

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A prior report by Legit.ng disclosed that the Dangote Refinery’s diesel and aviation fuel production has reduced Africa’s reliance on imported fuel.

The massive refinery plans an upgrade to 700,000 barrels per day from its current 650,000 bpd-capacity.

Dangote Refinery ends aviation and diesel import in Africa
Nigeria's petroleum sector becomes competitive as Dangote Refinery reduces fuel prices. Credit: Bloomberg/Contributor.
Source: Getty Images

The refinery recently hit 610,000 barrels per day production capacity, cementing its position among the world's largest refining facilities.

Dangote Refinery, other depots hike petrol price

Legit.ng earlier reported that three operators, including Dangote Refinery, Aiteo and AA Rano, have adjusted their petrol depot prices to N823 per litre, up from N821, following the rise in crude oil prices.

International benchmarks edged to $67 per barrel from $65 in the global crude market over the weekend.

The three operators had previously sold petrol at N821 per litre. Findings showed that on Sunday, August 24, 2025, the domestic petroleum market continued to react to global changes due to competition in the Nigerian downstream petroleum sector.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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