Dangote finalizes a colossal $2.5 billion contract to construct a fertilizer manufacturing facility in Ethiopia.
In a significant development for Ethiopia's agriculture sector, Africa's richest man, Aliko Dangote, has signed a multibillion-dollar agreement with the Ethiopian government. The deal, which marks a decisive step towards food sovereignty, is for the construction of a fertilizer plant in Ethiopia's eastern Somali region.
The Dangote Fertilizer Plant, if successful, could reshape Ethiopia's agriculture-driven economy, which currently accounts for more than one-third of the country's GDP, according to World Bank data. The project is expected to create local jobs and ensure a reliable fertilizer supply for Ethiopian farmers, potentially boosting agricultural productivity.
Prime Minister Abiy Ahmed described the deal as a landmark for Ethiopia's food security ambitions. He emphasized that the project could significantly reduce Ethiopia's annual fertilizer imports, which currently cost the country approximately $1 billion, as per World Bank data.
Under the agreement, Aliko Dangote will own 60% of the facility, while the remaining 40% will be held by the state-owned Ethiopian Investment Holdings (EIH). The exact start date of construction for the plant has not been publicly specified, but the estimated cost of the project is $2.5 billion.
The Prime Minister further stated that the agreement is a testament to Ethiopia's commitment to attracting foreign investment and fostering economic growth. The fertilizer plant is expected to contribute to Ethiopia's long-term food security and economic development goals.
In conclusion, the Dangote Fertilizer Plant in Ethiopia's eastern Somali region holds immense potential for the country's agriculture sector and economy. The project, if successful, could transform Ethiopia's agriculture-driven economy, create local jobs, and ensure a reliable fertilizer supply for farmers, ultimately contributing to Ethiopia's food security and economic development goals.
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