Ethiopia and Nigeria’s Dangote Group have joined forces to establish a $2.5 billion fertiliser plant in Gode, southeastern Ethiopia. This plant, with an annual production capacity of 3 million metric tons, is part of Aliko Dangote’s initiative to reduce Africa’s reliance on imported fertiliser and enhance self-sufficiency in agricultural inputs.
The agreement, signed between state-owned Ethiopian Investment Holdings (EIH) and Dangote Group, stipulates that Dangote will hold a 60% stake in the project, while EIH will retain a 40% stake. Aliko Dangote expressed that this investment reflects a shared vision to industrialize Africa and achieve food security across the continent.
Africa currently imports over 6 million metric tons of fertiliser annually, which not only poses a financial burden but also hampers agricultural productivity and exposes farmers to global supply disruptions. In 2021, the continent’s fertiliser exports were valued at $8.9 billion, surpassing the import bill of $3.7 billion. North African countries like Morocco and Egypt played a significant role in this surplus, accounting for over 70% of total exports.
While 15 African nations were net exporters of fertiliser in 2021, countries like Ethiopia, Côte d’Ivoire, Zambia, Kenya, and the Democratic Republic of the Congo heavily relied on imports. This partnership between Ethiopia and Dangote Group signifies a step towards enhancing intra-African trade and reducing the continent’s dependence on external sources for agricultural inputs.
