Ethiopia signs $2.5 billion fertilizer investment deal with Dangote Group to bolster food security
Addis Ababa, August 28, 2025 (FMC) – Ethiopia has signed a $2.5 billion investment agreement with Africa’s Dangote Group to build a fertilizer complex in Gode, a project hailed by Prime Minister Abiy Ahmed as a turning point in the country’s agricultural transformation and drive for food sovereignty.
Images shared on the Prime Minister’s social media show Prime Minister Abiy Ahmed alongside Aliko Mohammad Dangote, founder and President & CEO of the Dangote Group, witnessing the signing ceremony in Addis Ababa.
The Fertilizer Complex Shareholder Investment Agreement, signed between Ethiopian Investment Holdings and the Dangote Group, will pave the way for a plant capable of producing up to three million metric tons of fertilizer annually, the Prime Minister said in a social media post.
According to Prime Minister Abiy, the project is expected to make Ethiopia one of the largest fertilizer producers globally, reducing reliance on imports and stabilizing supply for farmers who have long faced shortages.
He added that the project would generate thousands of jobs, boost productivity, and enhance Ethiopia’s competitiveness across Africa. “This initiative is a decisive step in our journey toward food sovereignty and reflects our commitment to executing strategic investments that serve our people and our future,” he stated.
Set for completion within 40 months, the government announced that an official groundbreaking will take place at the project site, underscoring its determination to see the venture through “for our farmers, for our economy, and for Ethiopia’s future,” the Prime Minister added.
It is noteworthy that PM Abiy had earlier highlighted in his July 3 address to Parliament that expanding domestic fertilizer production is essential to reduce reliance on imports, lower costs for farmers, and strengthen national food security. He noted that strategic investments in this sector would support Ethiopia’s broader economic transformation and industrialization agenda.