ADDIS ABABA, Ethiopia – Ethiopia has inked a landmark $2.5 billion investment agreement with Nigeria’s Dangote Group to build one of the world’s largest fertilizer complexes, capable of producing up to 3 million metric tons annually, Prime Minister Abiy Ahmed announced on Friday.
The agreement, signed between Ethiopian Investment Holdings and Dangote Fertilizer Limited, is expected to be a game-changer for food security in the Horn of Africa, where farmers have long faced shortages of essential agricultural inputs.
“This mega project will create local jobs, ensure a reliable fertilizer supply for our farmers, and mark a decisive step toward food sovereignty,” Prime Minister Abiy said. “It strengthens Ethiopia’s competitiveness across the continent and reflects our commitment to strategic investments that serve our people and our future.”
The Dangote Group, led by Africa’s richest man Aliko Dangote, already operates the continent’s largest fertilizer plant in Nigeria. The new Ethiopian facility is projected to position the country among the world’s top fertilizer producers, reducing reliance on imports and helping stabilize regional supply chains.
Following the signing ceremony, the project will move into construction at its designated site, with officials projecting significant economic benefits, including employment creation, skills transfer, and a boost to Ethiopia’s agricultural transformation agenda.
Ethiopia, Africa’s second-most populous nation, has faced persistent challenges of high food inflation and recurrent droughts. Analysts note that the successful implementation of this mega-project could ease some of these pressures and support the country’s broader goal of agricultural self-sufficiency.