Ethiopia has signed an agreement with a unit of Nigeria's Dangote Group to build a $2.5 billion fertiliser manufacturing plant, Prime Minister Abiy Ahmed said on Thursday in a post on social media platform X.

Abiy said the deal signed with Dangote Group, owned by Africa's richest man, Aliko Dangote, will place Ethiopia among the largest producers globally.

The plant, which will be launched on site soon, has the capacity to produce up to 3 million metric tonnes of fertiliser annually, the prime minister said.

Africa currently imports over 6 million metric tons of fertiliser annually, Reuters news agency reports.

‘Reliable supply’

“This project will create jobs locally, ensure a reliable fertilizer supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty,” Abiy said.

In June, the Nigerian billionaire said that Africa will be self-sufficient in fertiliser within 40 months on the basis of a planned expansion of his $2.5 billion plant in Nigeria's commercial hub, Lagos.