{"id":7911,"date":"2026-07-28T11:30:00","date_gmt":"2026-07-28T10:30:00","guid":{"rendered":"https:\/\/openafricantribune.com\/?p=7911"},"modified":"2026-07-09T14:03:38","modified_gmt":"2026-07-09T13:03:38","slug":"inside-ethiopias-partnership-with-africas-richest-man-aliko-dangote","status":"publish","type":"post","link":"https:\/\/openafricantribune.com\/fr\/2026\/07\/28\/inside-ethiopias-partnership-with-africas-richest-man-aliko-dangote\/","title":{"rendered":"Inside Ethiopia\u2019s Partnership with Africa\u2019s Richest Man, Aliko Dangote"},"content":{"rendered":"

Ethiopia stands to benefit significantly from Africa\u2019s richest man, Aliko Dangote, as his investments in the Horn of Africa nation have now surpassed $4 billion. Dangote announced this milestone during a visit to Gode in Ethiopia\u2019s Somali Region, where Prime Minister Abiy Ahmed hosted him.<\/p>\n\n\n\n

During the launch, Dangote expressed a desire to plug into the food security gap by addressing fertiliser constraints.<\/p>\n\n\n\n

\u201cAfrica holds immense agricultural potential, yet continues to grapple with food insecurity due to limited access to fertiliser. Through our investments, we are committed to reversing this trend by boosting productivity, empowering farmers, and advancing a sustainable path to food self-sufficiency,\u201d he said.<\/p>\n\n\n\n

\u201cIn total, our declared and signed investments in Ethiopia now exceed $4 billion. This makes Ethiopia the second-largest recipient of our investments in Africa, accounting for nearly nine per cent of our continental outlay between now and 2030,\u201d he added.<\/p>\n\n\n\n

Dangote described Ethiopia as a key strategic hub for the Group\u2019s long-term expansion plans across Africa, while commending Abiy Ahmed\u2019s development agenda. But Dangote\u2019s announcement came just weeks before Africa Finance Corporation (AFC) committed $600 million to support the Group\u2019s fertiliser expansion programme in Nigeria and Ethiopia.<\/p>\n\n\n\n

The financing, extended to Greenview Fertiliser Corporation, is among the largest recent funding commitments to fertiliser production on the continent. To understand the volume and ripple effect of this investment, we need to look at specific areas in which the Ethiopian government seeks to benefit.<\/p>\n\n\n\n

At the centre of the partnership is a fertiliser complex under construction in Gode, in Ethiopia\u2019s eastern Somali Region. Initially valued at $2.5 billion, the landmark fertiliser plant being built in Gode, located in Ethiopia\u2019s eastern Somali Region, is a joint venture between the Dangote Group and the state-owned Ethiopian Investment Holdings (EIH).<\/p>\n\n\n\n

It stands as one of the largest industrial agricultural investments in the country\u2019s history.<\/p>\n\n\n\n

According to EIH, Dangote Group will maintain 60 per cent ownership while the government keeps 40 per cent. Under the agreement, the two entities are jointly financing, constructing, and operating the state-of-the-art urea fertiliser plants and associated infrastructure.<\/p>\n\n\n\n

The facility is designed to produce three million tonnes of urea fertiliser annually, placing it among the largest fertiliser plants in Africa.<\/p>\n\n\n\n

\u201cThis partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent. The strategic location of Gode, combined with Ethiopia\u2019s abundant natural gas resources from the Hilala and Calub reserves, makes this an ideal location for what will become one of the world\u2019s largest fertiliser complexes,\u201d Aliko Dangote said during its launch.<\/p>\n\n\n\n

The project is also supported by a 110-kilometre natural gas pipeline, a 120-megawatt power plant, a polypropylene packaging facility, and a two-million-tonne NPK blending unit.<\/p>\n\n\n\n

What Ethiopia is to Gain from the Collaboration<\/h3>\n\n\n\n

For Prime Minister Abiy Ahmed, the project represents a major boost for an economy where agriculture remains the primary source of employment and a key driver of growth.<\/p>\n\n\n\n

In his musings, Ahmed said the project will support Ethiopia\u2019s agriculture sector and reduce the country\u2019s dependence on imported fertiliser. He described the development as a strategic initiative to boost agriculture, strengthen food security, and reduce dependence on imports.<\/p>\n\n\n\n

\u201cThis initiative represents much more than just infrastructure. It is a strategic investment in agricultural transformation, food security, industrial growth, and Ethiopia\u2019s economic self-reliance,\u201d Ahmed said.<\/p>\n\n\n\n

Today, the agricultural sector in Ethiopia employs 70 per cent of the country\u2019s population and contributes a significant share of GDP, according to Ethiopian Investment Holdings. Yet productivity remains constrained by structural challenges, including limited access to inputs such as fertiliser, foreign exchange shortages, and reliance on imports. Statistics from the Ministry of Agriculture of Ethiopia show that it imported 23 million quintals (2.3 million tonnes) of fertiliser in the 2024 production year.This is against a projected annual demand of 2.4 million tonnes.<\/p>\n\n\n\n

Essentially, Ethiopia currently imports 100 per cent of its fertiliser, for an industry that contributes about 35 per cent of GDP. The heavy reliance on imports is already being felt in the markets, particularly during heavily demanding seasons such as the Meher planting season.<\/p>\n\n\n\n

This period is the backbone of Ethiopia\u2019s food supply, making any supply chain hiccup a threat to national food security. The Meher includes planting and growing, which happens between May\/June and September, and corresponds directly with Kiremt, Ethiopia\u2019s main rainy season.<\/p>\n\n\n\n

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According to the International Food Policy Research Institute (IFPRI), the season accounts for 90 per cent of Ethiopia\u2019s total national crop production, which is dominated by teff, maize, sorghum, millet, wheat, and barley. Against this backdrop, the Gode fertiliser plant is highly strategic because the Meher season currently achieves an average of only 79 per cent of its potential yield due to soil moisture deficits. Improved access to fertiliser could help farmers narrow part of the productivity gap and increase yields.<\/p>\n\n\n\n

Subsequently, a domestic plant also eliminates heavy reliance on imports. This stabilises the local supply, protects the agricultural sector from global supply chain disruptions, and lowers input costs for smallholders. Also, because the country must spend scarce foreign currency to secure these inputs, such as fertiliser, macroeconomic shocks and shipping delays directly translate to shortages on the ground.<\/p>\n\n\n\n

Ahead of the 2025 season, data from the Ethiopian Ministry of Agriculture indicated that only 68 per cent of the intended distribution volume had reached cooperative distribution centres by April 2025. This open lag formed bottlenecks within key regions, including Amhara and Oromia, which together account for approximately two-thirds of national fertiliser demand.<\/p>\n\n\n\n

The project\u2019s significance, however, extends beyond addressing domestic shortages. With the projected three million tonnes output, the plant could easily cover local demand and leave a surplus of over 600,000 tonnes for export.<\/p>\n\n\n\n

\u201cAt three million tonnes, this is equivalent to what we have in Nigeria, which is actually the second-largest urea plant in the world,\u201d Dangote said.<\/p>\n\n\n\n

According to him, Ethiopia has the requisite raw materials and is able to support the production of a range of fertilisers. \u201cWhat we are trying to do is a massive revolution. We will not just stop at doing urea. We are going to do the whole range, and Ethiopia will be a net exporter,\u201d he added.<\/p>\n\n\n\n

With this surplus, Ethiopia could potentially serve markets like Kenya and Tanzania. Kenya\u2019s market, for instance, presents a 700,000 to 850,000 metric tonne demand for fertiliser every year, according to data from the Ministry of Agriculture.<\/p>\n\n\n\n

This consumption varies year to year based on global market prices, local weather patterns, and the scale of government-funded subsidy programmes. Of this, virtually zero per cent of primary chemical fertiliser is manufactured from raw materials within Kenya. While some companies operate local blending plants, they do not manufacture the base components.<\/p>\n\n\n\n

This already puts Ethiopia miles ahead of Kenya and other countries in the region, even though its ambitions remain some distance from Morocco\u2019s scale. Currently, Morocco is Africa\u2019s biggest fertiliser producer. Through its state-owned company OCP Group, it makes about 12 million tonnes of fertiliser each year using its vast phosphate reserves, which are among the largest in the world.<\/p>\n\n\n\n

This allows Morocco to supply fertiliser to countries across Africa and beyond. Ethiopia is taking a different approach by relying on natural gas to produce urea fertiliser.<\/p>\n\n\n\n

Why Calub Gas Is the Secret Pill in the Project<\/h3>\n\n\n\n

The Calub gas field, located in Ethiopia\u2019s Ogaden Basin, is the absolute anchor for Dangote\u2019s $2.5 billion urea fertiliser plant in Gode.<\/p>\n\n\n\n

It is home to the Ogaden Liquefied Natural Gas Project. Launched in late 2025, the project is a multipurpose plant expected to produce 111 million litres of gas and 1,000 megawatts of electricity. Since natural gas is a component in the manufacture of urea, the project presents a perfect opportunity for the fertiliser production plant to harness the natural gas.<\/p>\n\n\n\n

The newly announced 110-kilometre pipeline is expected to connect the gas project directly to the proximate fertiliser plant to seamlessly fuel its operations.<\/p>\n\n\n\n

More importantly, Calub solves one of the biggest challenges facing fertiliser production globally, which is access to affordable feedstock. Since natural gas accounts for a substantial share of urea production costs, countries with reliable gas reserves enjoy a major competitive advantage. For decades, the Ethiopian government has been seeking to commercialise its gas reserves, with strong ambitions tied to the construction of a cross-border pipeline to Djibouti.<\/p>\n\n\n\n

In 2016, Ethiopia and Djibouti partnered with Chinese firm Poly-GCL on a $4 billion pipeline project to export gas from the Ogaden Basin to China through Djibouti. The project was expected to generate more than $1 billion annually for Ethiopia but was eventually abandoned after years of funding, security, and contractual challenges, leading the government to revoke Poly-GCL\u2019s licences.<\/p>\n\n\n\n

Now, the fertiliser plant gives a lifeline to Ethiopia\u2019s dream, but that is not without challenges.<\/p>\n\n\n\n

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Challenges and Risks<\/h3>\n\n\n\n

Since it is located in the Somali Regional State, the project relies heavily on regional stability. This border region has previously experienced sporadic ethnic conflicts and security challenges. In late 2024 and early 2025, there was a deadly flare-up of violence in the Dacawaley border zone.<\/p>\n\n\n\n

Traditionally, this is an area that has long been plagued by territorial and land-use disputes between local communities and regional militias. According to Human Rights Watch, the fighting in the disputed territory resulted in dozens of deaths and injuries. Data from the Armed Conflict Location and Event Data Project also captured persistent friction along the regional borders separating the Somali, Oromia, and Afar regions.<\/p>\n\n\n\n

This recent internal strife follows a major external crisis in mid-2022, when an unprecedented cross-border incursion by Al-Shabaab militants led to between 800 and 1,500 fatalities.<\/p>\n\n\n\n

African-Led Investments<\/h3>\n\n\n\n

While the project\u2019s success will ultimately depend on execution, its significance extends beyond fertiliser production and export revenues. For years, many of the continent\u2019s largest infrastructure and industrial ventures have been funded primarily through Western governments, multilateral institutions, or foreign corporations.<\/p>\n\n\n\n

Ethiopia\u2019s partnership with Dangote is increasingly being viewed as a test case for a different model of development driven by African investors and African governments working together to build industrial capacity.<\/p>\n\n\n\n

Currently, China remains Ethiopia\u2019s dominant economic partner, accounting for approximately 60 per cent of all foreign investment projects, according to government data. The investments heavily lean on manufacturing, textile sectors, and services. Saudi Arabia, T\u00fcrkiye, and the United Arab Emirates follow as major sources of capital.<\/p>\n\n\n\n

Ethiopia\u2019s partnership with Dangote is a different kind of investment. It combines Ethiopia\u2019s own government involvement with private funding from within Africa. This approach aligns with Ethiopia\u2019s Homegrown Economic Reform Agenda II (HGER II), launched in 2020.<\/p>\n\n\n\n

HGER II prioritises foreign direct investment in manufacturing, agriculture, and logistics as key drivers of long-term growth. The strategy appears to be gaining traction. According to the United Nations Conference on Trade and Development (UNCTAD), Ethiopia\u2019s foreign direct investment inflows rose by 21.9 per cent to $3.27 billion in 2024, up from $2.68 billion the previous year.<\/p>\n\n\n\n

Who Emerges as the Biggest Winner?<\/h3>\n\n\n\n

Perhaps the most important question is who ultimately stands to gain from the fertiliser project. At first glance, Ethiopia appears to be the biggest beneficiary of the partnership.<\/p>\n\n\n\n

The country stands to reduce its dependence on imported fertiliser, conserve valuable foreign exchange reserves, and strengthen food security for its 130 million people. The project is also expected to create industrial jobs, stimulate economic activity in the Somali Region, and support the government\u2019s broader industrialisation agenda.<\/p>\n\n\n\n

For Ethiopian farmers, the benefits could be even more tangible. Having a local fertiliser plant with the capacity to meet the annual demand and generate surplus for export will help stabilise supply, reduce seasonal shortages, and gradually ease input costs over time, provided distribution systems function efficiently.<\/p>\n\n\n\n

Yet the investment is equally strategic for Dangote Group. The project gives the company access to one of Africa\u2019s largest agricultural markets and expands its industrial footprint beyond Nigeria. It is a continuation of Dangote\u2019s wider strategy of building integrated industrial value chains across the continent, spanning cement, fertiliser, energy, and refining.<\/p>\n\n\n\n

Beyond agriculture, the Nigerian billionaire is aggressively executing infrastructure projects across Africa to scale his industrial footprint. Dangote Cement is currently undergoing a $1 billion expansion plan across several continental markets to meet rising construction demand.<\/p>\n\n\n\n

The conglomerate has committed at least $1 billion to Zimbabwe for cement manufacturing, power generation, and a major 2,000-kilometre petroleum pipeline. The Group is also studying plans for a new 650,000-barrel-per-day refinery in East Africa, with Kenya\u2019s port city of Mombasa under consideration as a potential site.<\/p>\n\n\n\n

If delivered as planned, the Gode fertiliser project could mark a shift in how African economies approach industrialisation. It could also set the stage for more partnerships between African governments and African capital seeking to solve shared structural constraints.<\/p>","protected":false},"excerpt":{"rendered":"

Ethiopia stands to benefit significantly from Africa\u2019s richest man, Aliko Dangote, as his investments in the Horn of Africa nation have now surpassed $4 billion. Dangote announced this milestone during a visit to Gode in Ethiopia\u2019s Somali Region, where Prime Minister Abiy Ahmed hosted him. During the launch, Dangote expressed a desire to plug into […]<\/p>\n","protected":false},"author":130,"featured_media":7954,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"saved_in_kubio":false,"footnotes":""},"categories":[19,30,27],"tags":[],"class_list":["post-7911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-governance","category-infrastructure"],"_links":{"self":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/7911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/users\/130"}],"replies":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/comments?post=7911"}],"version-history":[{"count":2,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/7911\/revisions"}],"predecessor-version":[{"id":7975,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/7911\/revisions\/7975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/media\/7954"}],"wp:attachment":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/media?parent=7911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/categories?post=7911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/tags?post=7911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}