The Ethiopian government has signed a $2.5 billion shareholder investment agreement with Dangote Group to build a fertiliser complex, a project officials say will transform the country’s agricultural sector and advance food security.

Prime Minister Abiy Ahmed announced the deal on Thursday, describing it as a “milestone” for Ethiopia’s economy. The project, once completed, is expected to produce up to three million metric tons of fertiliser annually, positioning Ethiopia among the world’s largest producers.

“Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation,” Abiy said in a statement.

“Today, we signed the Fertiliser Complex Shareholder Investment Agreement between Ethiopian Investment Holdings and Dangote Group. With an investment of $2.5 billion, this mega project will produce up to 3 million metric tons of fertiliser annually, placing Ethiopia among the largest producers globally. This project will create jobs locally, ensure a reliable fertiliser supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty.”

The Prime Minister added that the agreement with Dangote enhances Ethiopia’s competitiveness across Africa and reflects its commitment to making strategic investments that secure the future of its citizens.

Aliko Dangote, president of the Dangote Group, has long championed Africa’s potential to achieve fertiliser self-sufficiency. In June, he projected that the continent would be fully self-reliant within 40 months. Earlier in May, he revealed that Dangote Industries Limited is targeting daily fertiliser revenues of $7 million within the next two years.

The new Ethiopian facility is expected to significantly reduce the country’s dependence on imported fertiliser, while also creating thousands of jobs and strengthening the agricultural base of Africa’s second-most populous nation.

Melissa Enoch

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