Dangote to sell at least 10% of $4bn Ethiopian fertiliser plant on local exchange

Aliko Dangote plans to sell at least 10 per cent of his $4 billion Ethiopian fertiliser business to local investors through the Ethiopian Securities Exchange. The sale will happen once the plant begins operations and production stabilises.

Dangote spoke in Addis Ababa on Thursday. He said the listing would let Ethiopian investors own shares in one of the country’s biggest industrial projects.

Gode plant and ownership

The project is a fertiliser complex under construction in Gode, Ethiopia’s Somali region. It is designed to produce three million tonnes of urea fertiliser yearly, cut reliance on imports and support exports to neighbouring East African markets.

Dangote Group controls 60 per cent of the venture. Ethiopian Investment Holdings, the government’s sovereign investment arm, owns the remaining 40 per cent.

Construction began in October 2025. Completion is expected within 40 months, placing the projected opening in 2029. The initial estimate was $2.5 billion. The cost has exceeded $4 billion after adding a gas pipeline, power generation facilities, packaging infrastructure and a fertiliser blending plant. The facility will receive natural gas from the Calub and Hilala fields in Ethiopia’s Ogaden basin.

For Ethiopia, the project promises reduced dependence on costly imports, improved agricultural productivity and potential foreign exchange earnings from exports.

Exchange listing and Dangote’s plans

Dangote said: “We need to sell at least 10 percent of it at the Ethiopian Stock Exchange.” He said he would discuss the proposal with Ethiopian Prime Minister Abiy Ahmed but insisted the investment group would proceed regardless of the government’s position. “Even if he doesn't agree, we will take our own 10 percent and sell,” he said.

He did not disclose the proposed share price, offer size or listing date. The Ethiopian Securities Exchange began trading in January 2025, marking the country’s return to organised stock trading after several decades. It hopes to attract 50 listings by 2030. Dangote believes the fertiliser business could eventually become Ethiopia’s second most valuable company after Ethiopian Airlines.

The Ethiopian investment is part of Dangote’s plan to lift group fertiliser production to 12 million tonnes annually and expand investor access. The expansion includes another three-million-tonne production line in Ethiopia and six million tonnes of additional capacity in Nigeria. Dangote also plans to list his Nigerian fertiliser business next year.

His Nigerian oil refinery is pursuing a separate public share offering involving 4.1 billion shares priced at ₦525 each. The offer targets approximately $1.6 billion and has been extended until October 27 to accommodate more African investors. Nigerian students also have an opportunity to receive 10 additional shares in Dangote Petroleum Refinery and Petrochemicals FZE at no cost through a grant initiative by the Aliko Dangote Foundation. The Student Share Grant Initiative is designed to promote financial inclusion, encourage savings and introduce young Nigerians to investing in the capital market.

For Nigerian investors, the Ethiopian listing is separate from the refinery offer and the planned Nigerian fertiliser listing. The refinery offer remains open until October 27, with the Dangote group seeking more African participation.