The Ethiopian government has entered into a landmark $2.5 billion shareholder investment agreement with the Dangote Group to establish a large-scale fertilizer production complex. This development, announced by Prime Minister Abiy Ahmed Ali, represents a major step in the country’s quest for agricultural transformation and food self-sufficiency.

In a statement, Prime Minister Abiy celebrated the deal as a milestone for Ethiopia, stating that the project will have a significant impact on the nation’s agricultural sector. The new fertilizer complex, once completed, is expected to produce up to three million metric tons of fertilizer annually, placing Ethiopia among the world’s leading producers. This increased production capacity is aimed at ensuring a steady and affordable supply of fertilizer to local farmers, many of whom have long struggled with inconsistent access.

Abiy highlighted the broader implications of the project, explaining that beyond agriculture, the facility will create local employment opportunities and strengthen Ethiopia’s economic competitiveness across the African continent. He stressed that the project reflects the government’s strategic focus on long-term investments that directly benefit Ethiopian citizens and build a more secure future.

The fertilizer plant will be constructed in Gode, a town located in the southeastern region of Ethiopia. According to details from the agreement, Ethiopian Investment Holdings (EIH), the state-owned investment arm, will hold a 40 percent share in the venture, while Dangote Group will retain the remaining 60 percent.

Speaking at the signing ceremony in Addis Ababa, EIH CEO Brook Taye confirmed the equity structure and emphasized the significance of the partnership. Aliko Dangote, founder of the Dangote Group, also expressed optimism about the project, describing it as a shared commitment to industrializing Africa and achieving food security across the continent.

The project is expected to drive both economic growth and agricultural resilience in Ethiopia and serve as a model for regional cooperation and private-public investment.