Dangote Industries Limited has signed a $4.2 billion, 25-year natural gas supply agreement with China’s GCL Group to fuel a major fertiliser expansion in Ethiopia, Business Insider reports.
The deal will provide long-term gas for Dangote’s planned 3-million-tonne-per-year urea fertiliser complex, a facility poised to transform fertiliser production across East Africa.
The $2.5 billion plant is being developed through a joint venture between Dangote Group and Ethiopian Investment Holdings, holding 60% and 40% stakes, respectively, with construction scheduled for completion by 2029. Once operational, it is set to become East Africa’s largest modern fertiliser hub, meeting Ethiopia’s domestic urea needs and supplying neighbouring markets.
The agreement, finalised in Lagos, underscores the strategic nature of the partnership and reflects the growing role of Chinese-African industrial collaborations.
Over the past two decades, Dangote has built Africa’s largest cement network through Dangote Cement and expanded into energy and petrochemicals, most notably via the Dangote Refinery, the world’s largest single-train oil refinery.
By investing in fertiliser production, Dangote aims to strengthen Africa’s agricultural value chain and reduce the continent’s dependence on imported farm inputs.
“Africa’s energy industry cannot continue exporting raw materials while importing finished products,” Dangote said, noting the GCL partnership will help create an integrated value chain from natural gas to fertiliser.
GCL Group Chairman Zhu Gongshan described the project as a new model for China–Africa industrial cooperation, integrating upstream gas production, pipeline infrastructure, and downstream fertiliser manufacturing.
