Dangote Group to Offer 10% Stake in Ethiopian Fertiliser Business on Local Stock Exchange

Aliko Dangote, the prominent Nigerian industrialist and CEO of Dangote Group, has announced plans to list 10 percent of the company’s Ethiopian fertiliser business on the Ethiopian Securities Exchange (ESX). This move aims to provide local investors with the opportunity to invest in one of Ethiopia's largest industrial initiatives and is part of Dangote's broader strategy to enhance investment in the country.

The announcement was made during an investor roadshow held in Addis Ababa, where Dangote emphasized the limitless potential of investment in Ethiopia. "Whatever we make here, we will bring more and more here," he stated, highlighting the group's commitment to expanding its operations in the region.

The focal point of Dangote Group's investment in Ethiopia is a fertiliser manufacturing complex located in Gode, situated in the Somali Region. In August 2025, Dangote Group entered into a shareholders’ agreement with Ethiopian Investment Holdings, securing a 60 percent stake in the project, while the Ethiopian state investment holding company retained the remaining 40 percent. Construction of the facility commenced in October 2025.

Originally projected to cost $2.5 billion, the investment has since escalated to over $4 billion as the project's scope expanded to include additional infrastructure requirements. The facility is designed to produce three million metric tonnes of urea annually, which is expected to significantly bolster Ethiopia's agricultural sector and potentially cater to neighboring markets.

The establishment of this fertiliser plant is anticipated to reduce Ethiopia's dependency on imported fertiliser, which has exposed the nation to fluctuations in international prices and foreign exchange pressures. However, the extent of savings will depend on various factors, including production efficiency, operating costs, and local sales.

Gode's strategic location is also noteworthy, as the region is rich in natural gas resources, a crucial feedstock for urea production. The availability of reliable gas supplies, electricity, water, and transport infrastructure will be vital for the project's operational costs and long-term sustainability.

In addition to the fertiliser project, Dangote has indicated plans for further investments in energy and transport infrastructure, including a pipeline connection between Djibouti and Ethiopia, as well as projects in Tanzania. These initiatives are part of a larger effort to secure the necessary energy and infrastructure to support Dangote's manufacturing operations across Africa.

Ethiopian officials have welcomed the proposed stock market listing, viewing it as a significant step towards integrating African capital markets and enabling local investors to partake in the growth of businesses within the continent. Ahmed Shide, speaker of the Ethiopian parliament, described the initiative as a model for "African enterprises financed by Africans," underscoring the potential benefits of enhanced financial collaboration across Africa.

Dagmawit Shifera, another Ethiopian official, noted that the listing would provide qualified local investors with an opportunity to engage in the market, fostering greater integration between African capital markets. Representatives from the Ethiopian Securities Exchange expressed gratitude to Dangote for his decision to list on the local market, interpreting it as a vote of confidence in Ethiopia's financial sector.

If the listing proceeds as planned, it will enable eligible Ethiopian investors to acquire shares in Dangote's local fertiliser business, while also providing the conglomerate with an additional source of capital within Africa. The final details regarding the listing structure, regulatory approvals, and investor eligibility are still pending.

This initiative aligns with broader efforts to mobilize African savings for the continent's industrial development. For Ethiopia, the potential advantages extend beyond the stock market listing; the fertiliser complex could diminish import reliance and create export opportunities, contingent on securing reliable inputs and achieving competitive production costs.

As Dangote Group continues to expand its footprint across Africa, the fertiliser project in Ethiopia stands as a testament to the potential for industrial growth and investment collaboration within the continent.