By Seun Ibiyemi
Dangote Industries Limited has signed a $4.2 billion natural gas supply agreement with GCL Group to power a major fertilizer plant in Ethiopia, the company announced on Monday.
The deal, signed by Aliko Dangote in Lagos, guarantees a 25-year energy supply to the fertilizer complex, ensuring uninterrupted operations once the plant becomes operational.
This agreement strengthens an existing partnership between Dangote Industries Limited and Ethiopian Investment Holdings to develop a $2.5 billion urea fertilizer complex in Gode, Ethiopia.
Dangote Industries holds 60 per cent of the joint venture, with Ethiopian Investment Holdings holding the remaining 40 per cent.
The project is expected to be completed by 2029.
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“Africa’s largest industrial conglomerate has secured one of the most ambitious China–Africa industrial partnerships in recent years,” Business Insider reported, highlighting the significance of the deal in boosting industrial capacity across the continent.
Aliko Dangote said the project reflects a broader strategy to strengthen Africa’s industrial value chain and reduce dependence on imported finished products.
Zhu Gongshan described the partnership as a new model of China–Africa industrial cooperation, integrating gas supply, pipeline infrastructure, and fertilizer manufacturing.
The agreement positions the Ethiopian fertilizer plant to become one of Africa’s largest and most modern facilities, supporting food security and industrial growth in the region.
