Africa’s richest man, Aliko Dangote, has struck a multibillion-dollar deal with the Ethiopian government to construct a fertilizer plant poised to transform the country’s agriculture-based economy.

Signed in Addis Ababa on Thursday, the agreement gives Dangote a 60 per cent stake in the facility, while state-owned Ethiopian Investment Holdings will hold the remaining 40 per cent.

The $2.5 billion project is set to be built in Ethiopia’s eastern Somali region.

Ethiopian Prime Minister Abiy Ahmed hailed the deal as a milestone for the nation’s food security goals.

““This project will create jobs locally, ensure a reliable fertilizer supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty,” he said in a statement.

Agriculture contributes over a third of Ethiopia’s GDP, according to World Bank data, yet the country spends around $1 billion each year on imported fertilizers.

The new plant, expected to be completed in approximately 40 months, will have an annual production capacity of 3 million tons and will be connected via pipeline to the Calub and Hilala natural gas fields in the southeast.

Ethiopian Investment Holdings (EIH) highlighted that the project will greatly reduce the country’s reliance on fertilizer imports, ensuring a steady local supply and easing foreign exchange pressures.

For Dangote, the agreement reinforces his pan-African growth strategy. He already runs cement operations in 10 African countries and operates a 3 million-ton fertilizer facility in Nigeria that began production three years ago.

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” Dangote said.