The Ethiopian government has announced the signing of a $2.5 billion fertiliser complex shareholder investment agreement with Dangote Group, a move set to boost the country’s food security and agricultural transformation.

Prime Minister Abiy Ahmed Ali, in a statement on Thursday, described the landmark deal as a decisive step toward food sovereignty.

“Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation”. 

“Today, we signed the Fertiliser Complex Shareholder Investment Agreement between Ethiopian Investment Holdings and Dangote Group,” Abiy said.

The prime minister noted that with an investment of $2.5 billion, the project will produce up to three million metric tons of fertiliser annually, positioning Ethiopia among the world’s largest producers.

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

“It enhances Ethiopia’s competitiveness across Africa and demonstrates our commitment to making strategic investments that benefit Ethiopians and secure their future,” Abiy added.

The fertiliser plant will be established in Gode town, southeastern Ethiopia, producing 3 million metric tons per annum.

The agreement was officially signed between state-owned Ethiopian Investment Holdings (EIH) and Dangote Group. 

Under the deal, Ethiopia will hold a 40 per cent stake, while Dangote Group will own 60 per cent, according to Brook Taye, Chief Executive of EIH, who spoke at the signing ceremony in Addis Ababa.

Source: Vanguard

Credit Image: The Nation Nigeria