Dangote Industries Limited has secured a $4.2 billion, 25-year natural gas supply deal with China’s GCL Group to power a major fertiliser expansion project in Ethiopia, according to a report by Business Insider.
The agreement will provide long-term gas supply for Dangote’s planned 3-million-tonne-per-year urea fertiliser complex, a facility expected to transform fertiliser production across East Africa.
The fertiliser plant, valued at $2.5 billion, is being developed through a joint venture between Dangote Group and Ethiopian Investment Holdings, which hold 60% and 40% stakes respectively. Construction is scheduled to be completed by 2029.
Once operational, the complex is set to become East Africa’s largest modern fertiliser production hub, supplying Ethiopia’s domestic urea needs while also reaching neighbouring regional markets.
The landmark agreement, finalised in Lagos, highlights the strategic nature of the partnership and the growing role of Chinese-African industrial collaborations across the continent.
Over the past two decades, Dangote has built Africa’s largest cement manufacturing network through Dangote Cement, with operations across more than a dozen African countries. The group has also expanded aggressively into energy and petrochemicals, most notably through the Dangote Refinery, the world’s largest single-train oil refinery located in Nigeria.
By investing in fertiliser production, Dangote aims to strengthen Africa’s agricultural value chain while reducing the continent’s reliance on imported farm inputs.
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Speaking on the partnership, Dangote said 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 fertiliser production.
Chairman of GCL Group Zhu Gongshan added that the project represents a new model of China–Africa industrial cooperation that integrates upstream gas production, pipeline infrastructure, and downstream fertiliser manufacturing.
