Addis Ababa, August 28, 2025 — Africa’s richest man, Aliko Dangote, has signed a landmark $2.5 billion agreement with the Ethiopian government to establish a fertilizer plant that is set to transform the country’s agriculture-driven economy.
The deal, signed on Thursday in Addis Ababa, gives Dangote Industries Limited a 60% ownership stake, while Ethiopian Investment Holdings (EIH), the state-owned investment arm, will retain the remaining 40% shareholding. The mega facility will be situated in Ethiopia’s eastern Somali region, strategically positioned to support the country’s booming agricultural sector.
The plant, once completed, is expected to significantly reduce Ethiopia’s reliance on fertilizer imports, enhance food security, and boost agricultural productivity in a nation where farming accounts for nearly 35% of GDP and employs more than 65% of the workforce.
Economic observers note that the project not only underscores Dangote’s growing footprint in Africa’s industrial landscape but also reflects Ethiopia’s determination to attract high-value foreign investment to drive sustainable growth.
Analysts say the move could have a ripple effect across the Horn of Africa, positioning Ethiopia as a regional hub for fertilizer supply, while deepening Nigeria–Ethiopia trade ties under the African Continental Free Trade Area (AfCFTA).
Speaking at the signing, stakeholders described the investment as a “game-changer” that will empower farmers, create jobs, and strengthen the agricultural value chain in one of Africa’s fastest-growing economies.
