Dangote Industries Limited has secured a $4.2 billion long-term natural gas supply agreement with China’s GCL Group to power a major fertiliser expansion project in Ethiopia, marking a significant step in Africa’s industrial development drive.
The 25-year deal will supply gas to a planned 3-million-tonne-per-year urea fertiliser complex, a facility expected to reshape fertiliser production capacity across East Africa. The project, estimated at $2.5 billion, is being developed through a joint venture between Dangote Group and Ethiopian Investment Holdings, with equity stakes of 60 per cent and 40 per cent respectively.
Construction of the fertiliser plant is projected to be completed by 2029. Once operational, it is expected to emerge as the largest modern fertiliser production hub in the region, meeting domestic demand in Ethiopia while supplying neighbouring markets.
The agreement, finalised in Lagos, underscores the deepening economic cooperation between Chinese and African firms, particularly in large-scale industrial and energy infrastructure projects.
Over the years, Dangote Group has expanded its footprint across Africa, building the continent’s largest cement production network through Dangote Cement and venturing into energy and petrochemicals. A key milestone in this expansion is the Dangote Refinery, widely regarded as the world’s largest single-train oil refinery.
The fertiliser investment aligns with the group’s broader strategy to strengthen Africa’s agricultural value chain and reduce reliance on imported farm inputs, particularly fertilisers critical to boosting crop yields.
Speaking on the development, President of Dangote Group, Aliko Dangote, emphasised the need for Africa to shift from exporting raw materials to developing local processing capacity. He noted that the partnership with GCL would enable the creation of an integrated value chain spanning natural gas production to fertiliser manufacturing.
Chairman of GCL Group, Zhu Gongshan, described the deal as a model for future China–Africa industrial cooperation, combining upstream gas supply, pipeline infrastructure, and downstream manufacturing to drive sustainable development across the continent.
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