The largest conglomerate in Africa, Dangote Industries Limited, has inked a $4.2 billion, 25-year natural gas supply deal with China’s GCL Group. This deal will foresee the Chinese firm power the Dangote Ethiopia Fertilizer Plant. Additionally, it highlights one of the most ambitious China–Africa industrial partnerships in recent years. With such projects in the pipeline, Ethiopia is slowly emerging as a leading infrastructure giant in the region, with the country boasting infrastructure such as the GERD which is the largest dam in Africa.

The agreement will provide long-term gas supply for Dangote’s planned 3-million-tonne-per-year urea fertilizer complex. This facility is expected to transform fertilizer production across East Africa.

Cost of the Fertilizer Plant Project

Furthermore, the fertilizer plant is expected to cost $2.5 billion. The plant is being developed through a joint venture between Dangote Group and Ethiopian Investment Holdings. The developers hold 60% and 40% stakes respectively. As for the construction works, they will be completed by 2029.

Once it commences operations, the complex will become East Africa’s largest modern fertilizer production hub. It will supply Ethiopia’s domestic urea needs and also reach neighboring regional markets.

The landmark agreement got finalized in Lagos. It highlights the strategic nature of the partnership and the growing role of Chinese-African industrial collaborations across the continent.

Dangote Expands Footprint in Africa

As for the Ethiopia fertilizer project, it highlights the growing continental influence of Aliko Dangote who is Africa’s richest person and founder of Dangote Industries. Dangote’s businesses now span multiple strategic sectors. These include cement, energy, petrochemicals and food processing.

By investing in fertilizer production, Dangote aims to strengthen Africa’s agricultural value chain. The company also aims to cut the continent’s reliance on imported farm inputs.

Speaking on the partnership, Dangote stated that Africa must move beyond exporting raw materials while importing finished goods.

“Africa’s energy industry cannot continue indefinitely exporting raw materials while importing finished products,” he said, noting that the partnership with GCL would help build an integrated value chain from natural gas extraction to fertilizer production.

Significance of the Dangote Ethiopia Fertilizer Plant

Chairman of GCL Group Zhu Gongshan stated that the project represents a new model of China–Africa industrial cooperation that integrates upstream gas production, pipeline infrastructure and downstream fertilizer manufacturing.

Industry analysts say the fertilizer complex could help Ethiopia achieve fertilizer self-sufficiency, create thousands of jobs and stimulate industrial development in the Somali Region while strengthening East Africa’s agricultural productivity.

Project Factsheet

Project Name: Dangote Fertilizer Production Complex.

Location: Gode, Somali Regional State, Ethiopia.

Developers: Joint venture between Dangote Group (60%) and Ethiopian Investment Holdings (EIH) (40%).

Project Cost: Estimated at $2.5 billion.

Current Status: Construction launched (October 2025); Completion targeted for 2029.

Production Capacity: 3 million metric tons of urea per annum.

Global Standing: Set to be one of the top five largest urea production complexes in the world.

Gas Supply Agreement: A $4.2 billion, 25-year deal signed in March 2026 with China’s GCL Group to ensure long-term energy security.

Project Team

Dangote Group (60%): Africa’s largest industrial conglomerate, leading the project through its subsidiary, Dangote Industries Limited (DIL). It provides the majority of the $2.5 billion capital and operational expertise.

Ethiopian Investment Holdings (EIH) (40%): The strategic investment arm of the Ethiopian government. It serves as the local sovereign partner, facilitating land acquisition, regulatory approvals, and domestic resource integration.

GCL Group (Golden Concord Group): A leading Chinese private energy conglomerate. In March 2026, they signed a $4.2 billion, 25-year gas supply deal to provide feedstock from the Calub and Hilala gas fields in the Ogaden Basin to the plant via a 108-km pipeline.

Topsoe (Denmark): Provides the ammonia synthesis technology and process design.

Saipem (Italy): Contracted for the urea melt units and specialized engineering services.

Engineers India Limited (EIL): Serves as the Project Management Consultant (PMC), overseeing the construction and technical integration.

Financial Institutions

• Afreximbank
• Africa Finance Corporation (AFC)
• Access Bank
• First Bank
• Zenith Bank