Dangote Plans Ethiopia Fertiliser Listing

ETHIOPIA · MARKETS

Nigerian billionaire Aliko Dangote plans to sell at least 10% of his Ethiopian fertiliser venture on the Ethiopian Securities Exchange, he told investors in Addis Ababa on Thursday 15 October. The plant at Gode, now budgeted at more than US$4 billion, would be one of the biggest names on Ethiopia’s young stock market.

For US readers, the plan shows how African industrialists are turning to local stock markets to fund giant projects, which widens the frontier-market choices for American funds. It also touches food security, because Ethiopia imports almost all of its fertiliser.

What Dangote Said

Dangote, who heads Dangote Group, spoke at an investor roadshow in Addis Ababa, where he was also promoting the share offer of his Nigerian oil refinery. He said the Ethiopian sale would come once the plant is running and production has stabilised.

Dangote said he would discuss the plan with Prime Minister Abiy Ahmed but would go ahead regardless. “We need to sell minimum at least 10 percent of it at this Ethiopian Stock Exchange,” he said, adding: “Even if he doesn’t agree, we will take our own 10 percent and sell.”

The Gode Plant

The complex is being built at Gode, in Ethiopia’s Somali Regional State, and is designed to produce 3 million tonnes of urea a year. Dangote Group owns 60% and Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, holds 40% under a shareholders’ agreement signed in August 2025.

The project was first valued at about US$2.5 billion, but by May 2026 the planned investment had risen to more than US$4 billion as the scope grew. The package includes a 110-kilometre gas pipeline from the Calub and Hilala fields, a 120-megawatt power plant and a 2-million-tonne NPK blending plant, which mixes nitrogen, phosphorus and potassium fertilisers.

Construction was launched in October 2025, and one report points to completion within 40 months, which would mean around 2029. The plant is designed to run on gas from the Calub and Hilala fields.

Why the Stock Exchange Matters

The Ethiopian Securities Exchange began trading in January 2025 as the country’s first formal stock exchange in more than 50 years. It has only a handful of listed companies and aims for 50 listings by 2030.

Ethiopia imports almost all of its fertiliser, so the government expects the plant to cut that import bill and save scarce foreign currency. A listing would also let Ethiopian savers own a share of the plant.

Ethiopia has already opened a local window for Dangote’s refinery offer, limited to qualified investors and capped at 100 buyers. Our report Ethiopia Limits Dangote Shares to 100 Buyers has the details.

What It Means for US Readers

US investors in frontier markets would gain a new kind of asset to watch: a large industrial project listed on a young Ethiopian exchange rather than in Lagos or Johannesburg. The reports do not say whether foreign buyers could take part, so American funds should not assume access.

For American agribusiness and trade groups, the plant is a sign that Ethiopia wants to make its own urea. If it is finished on time, it could change fertiliser flows into East Africa over the next decade; Dangote’s refinery offer, promoted at the same roadshow, is covered in Dangote Refinery IPO Draws 90 Countries.

What Is Not Known

No price, timetable, share count, prospectus or final deal structure has been disclosed. It is not confirmed whether the 10% comes out of Dangote Group’s 60% stake, as his remark about taking “our own 10 percent” suggests, or out of the whole venture.

No statement from Prime Minister Abiy, Ethiopian Investment Holdings, the exchange or Ethiopian regulators confirming approval of the sale appears in the reports. Whether foreign investors could take part is also unknown.

More: Ethiopia news in English, every day from The Rio Times.

Frequently Asked Questions

When will the Ethiopian fertiliser stake be listed?

No date has been announced. Dangote indicated the sale would come only after the Gode plant is built and production has stabilised, with one report pointing to around 2029.

Who owns the Gode fertiliser project?

Dangote Group holds 60% and Ethiopian Investment Holdings, the government’s strategic investment arm, holds 40%. The shareholders’ agreement was signed in August 2025.

How much will the fertiliser plant cost?

The project was first valued at about US$2.5 billion. By May 2026 the planned investment had reportedly risen to more than US$4 billion because of a wider scope and extra infrastructure.

Can foreign investors buy the shares?

Nothing has been disclosed about the structure of the offer or who may buy. Investors should wait for a prospectus from the exchange or the company.

Sources: The Reporter Ethiopia; Ecofin Agency; Ethiopian Investment Holdings; Southern African Times; Billionaires Africa; BusinessDay Nigeria.

Photo credits: cover, DaneyWiki (CC BY-SA 4.0); inline, Simfan34 (CC BY-SA 3.0); both via Wikimedia Commons.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief