Dangote Industries Limited has secured a $4.2 billion, 25-year natural gas supply agreement with China’s GCL Group to fuel a major fertiliser project in Ethiopia, according to a report from Business Insider.
The deal, finalised in Lagos, will provide long-term gas for Dangote’s planned 3-million-tonne-per-year urea fertiliser complex. Valued at $2.5 billion, the facility is being developed through a joint venture between Dangote Group and Ethiopian Investment Holdings, with shareholdings of 60% and 40% respectively. Construction is scheduled for completion by 2029.
Once operational, the complex is projected to become East Africa’s largest modern fertiliser production hub. It is designed to meet Ethiopia’s domestic urea requirements and supply neighbouring regional markets, aiming to reduce the area’s reliance on imported farm inputs.
The agreement underscores a deepening strategic partnership between the Nigerian conglomerate and the Chinese firm, reflecting broader trends in China-Africa industrial collaboration. GCL Group’s Chairman, Zhu Gongshan, described the project as a new model integrating upstream gas production, pipeline infrastructure, and downstream fertiliser manufacturing.
For Dangote, the investment aligns with its strategy to strengthen Africa’s agricultural value chain and move beyond raw material exports. “Africa’s energy industry cannot continue indefinitely exporting raw materials while importing finished products,” a Dangote representative stated, adding that the partnership would help build an integrated chain from gas extraction to fertiliser output.
The Ethiopian project represents Dangote’s latest major diversification beyond its flagship cement business, which operates across more than a dozen African countries. The group has also made significant investments in energy and petrochemicals, including the Dangote Refinery in Nigeria—the world’s largest single-train oil refinery.
By entering large-scale fertiliser production, Dangote aims to support agricultural productivity on the continent while capturing a larger share of the processing value chain. The Ethiopia plant’s progress will be closely watched as a benchmark for integrated resource-based projects in East Africa.
The agreement was first reported by Business Insider and originally published by Channels Television.
